Here's a fun twist in the ongoing tariff saga: losing in court might actually be the best thing that could happen to Donald Trump and the Republican Party. At least, that's the unconventional take from former U.S. Deputy Assistant Attorney General John Yoo.

Yoo thinks the Supreme Court's recent ruling against President Trump's tariffs—the ones imposed under the International Emergency Economic Powers Act—could unintentionally juice the economy right before the 2026 midterm elections. In a conversation with Fox News, he pointed to the recent downbeat GDP report and suggested a counterintuitive path forward.

"If all of the president's announced tariffs were immediately removed, and 'If he chooses to do it again,'" Yoo said, referring to a potential overhaul of Trump's tariff plan, "it would take about a year to implement." That timeline, he argues, could actually provide a "positive boost" to the economy. The logic goes like this: if the tariffs have been weighing on growth, pulling them back could trigger a rebound. And if that rebound happens in, say, late 2025 or early 2026? Well, that's awfully close to election day.

"This might be a blessing in disguise," Yoo said.

He's not the only one connecting these dots. Senator John Kennedy (R-La.), in a separate interview, echoed the sentiment and issued a warning to Democrats who are calling for tariff refunds to be returned to American taxpayers. "...they better be careful what they ask for," Kennedy said, because if Trump gives back billions of dollars collected from tariffs, the economy is going to "roar"—and the midterms are only a few months off.

This political calculus is unfolding against a backdrop of softer economic data. The U.S. economy grew at a 1.4% annualized rate in the fourth quarter of 2025, according to reports. That's down from 4.4% in the previous quarter and below the expected 3% growth. The slowdown was driven by slower government spending (amid a shutdown), weaker exports, and softer consumer spending. It was partly offset by stronger investment, while imports fell more slowly than in the third quarter.

So what can Trump actually do on tariffs now? The Supreme Court's decision nullified his use of the IEEPA, which offered broad, flexible authority. In response, the president announced a 15% global tariff rate under Section 122 for 150 days. He also said he would continue to pursue tariffs under Congress-approved authorities like Sections 232 and 301.

But here's the catch: those provisions don't grant the same sweeping power. They require case-by-case investigations to determine specific levies, a process that could take months. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer have acknowledged that the other sections don't have the "same flexibility" as IEEPA. Meanwhile, the question of whether tariff money already collected should be refunded remains unresolved, awaiting further direction from the courts.

Abroad, trading partners are watching closely. The European Commission has urged the U.S. to honor its trade agreements and provide "full clarity," while China has called for the withdrawal of unilateral levies.

So, to sum up: a legal loss at the Supreme Court might force a tariff reset. That reset could take time. The removal of tariffs could stimulate the economy. And a stimulated economy could benefit the party in power just as voters head to the polls. Sometimes in politics, as in markets, the most direct path to victory isn't a straight line.