Trump’s new tariff threats trigger economic uncertainty; trade deals stall
Al Jazeera
February 23, 2026
AI-Generated Deep Dive Summary
The White House has announced a new round of tariffs following a Supreme Court ruling that invalidated President Donald Trump's use of the International Emergency Economic Powers Act to impose global tariffs. In response, Trump has threatened to impose a 15% tariff under Section 122 of the Trade Act of 1974, which allows for temporary tariffs without congressional approval. This move has sparked economic uncertainty, with experts warning that the lack of clarity and stability in trade policy could harm businesses, investors, and consumers.
The tariffs have already begun to affect financial markets, with U.S. stocks experiencing a downturn as major indices like the Nasdaq, S&P 500, and Dow Jones Industrial Average saw significant drops on Monday. Gold prices surged by 2%, hitting a three-week high, as investors sought safe havens in response to growing economic uncertainty. Experts have noted that the unpredictability of these tariffs makes it difficult for businesses to plan long-term, leading to potential reductions in hiring, investment, and economic activity.
The situation has also stalled trade negotiations with the European Union, which had been considering removing import duties on U.S. goods. The European Parliament has postponed a vote on the deal, citing concerns over Trump's new tariffs and their potential impact on EU exports. This delay highlights how Trump's actions are not only affecting domestic markets but also straining international relations and trade agreements.
Max Kulyk of Chicory Wealth and Gregory Daco of EY-Parthenon have emphasized that such uncertainty is detrimental to economic stability, as businesses struggle to navigate the shifting landscape of tariffs and trade policies. The 64% disapproval rate from a recent poll reflects widespread不满 among Americans regarding Trump's handling of tariffs.
As the tariffs take effect, their expiration in 150 days under Section 122 raises questions about whether Congress will extend them or seek to revise the policy. This uncertainty, combined with Trump's ongoing threats and actions, continues to create a challenging environment for global trade and economic growth.
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Originally published on Al Jazeera on 2/23/2026