Trump tariff chaos: What does 15% levy mean for trade deals the US signed?
Al Jazeera
February 22, 2026
AI-Generated Deep Dive Summary
The U.S. Supreme Court has invalidated President Donald Trump’s broad tariff policies, throwing global trade into further uncertainty. In a 6-3 decision, the court ruled that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on goods from both allies and adversaries. However, the ruling does not affect tariffs imposed under Section 232 of the Trade Expansion Act of 1962, which includes steel, aluminum, lumber, and automotive products. Following the court’s decision, Trump responded by signing an executive order under Section 122 of the U.S. Trade Act of 1974, imposing a 15% tariff on all traded goods, effective February 24.
Section 122 allows the president to impose tariffs of up to 15% to address “large and serious balance-of-payments deficits.” Trump is the first president to use this authority to impose tariffs, which are set to remain in place for at least 150 days unless Congress intervenes. The White House has exempted certain goods, such as agricultural products like beef and tomatoes, natural resources, fertilizers, and aerospace products, from the new tariffs. However, the legal implications of this unprecedented use of Section 122 are unclear, as it could face future challenges in court.
The new tariffs have cast doubt on existing trade deals signed by the U.S. with countries like the UK, India, and the EU. These agreements were designed to lower tariffs on U.S. imports, but the ongoing tariff dispute has left partners uncertain about whether they will be subject to the 15% rate or the previously agreed-upon terms. For example, India now faces uncertainty over whether it will be taxed at 18%, as per its trade deal with the U.S., or 15% under Trump’s new policy.
International trade lawyer Shantanu Singh noted that
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Originally published on Al Jazeera on 2/22/2026