Trump Tariff News Highlights: Trump raises tariffs to 15%, says it is ‘fully allowed, legally tested level’

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Oil prices slipped on Monday after President Donald Trump said he would raise U.S. tariffs on global imports, creating uncertainty for world economic growth and fuel consumption.

Brent crude futures slid 45 cents, or 0.63%, to $71.31 a barrel by 2315 GMT while U.S. crude futures were at $65.98 a barrel, down 50 cents, or 0.75%.

Following a 15% tariff hike, the trade chief of the European Parliament announced Sunday that he will suggest pausing the EU’s ratification of the trade agreement with the US until they obtain clarification from the Trump administration regarding its trade policy.

US Trade Representative Jamieson Greer stated that President Donald Trump’s tariff-policy defeat in the Supreme Court will not affect the individual agreements the administration has made with its trading partners, CBS reported.

Section 122 of the 1974 Trade Act allows the US President to impose a “temporary import surcharge,” also known as an import tariff, on goods imported to the United States based on a Balance-of-Payments (BOP) Authority.

This measure allows the president to impose an up to 15% tariff for a period of 150 days without any approval from the US Congress. However, if the tariffs are needed to be imposed after the 150 day peeriod then the congress needs to approve the extensions.

After the Supreme Court of the United States (SCOTUS) overturned the IEEPA-based tariffs on 20 February, President Donald Trump signed an executive order implementing 10% tariffs, while also raising the rate to 15% on 21 February 2026.

However, this time the tariffs are imposed under Section 122, which allows an import duty rate of up to 15% for 150 days to address any balance-of-payments-related deficits.

After the period, Trump will need Congress's approval to continue imposing the duties on all US imports from foreign nations.

US President Donald Trump's newly imposed 15% tariffs under Section 122 of the 1974 Trade Act on world nations, after the U.S. Supreme Court's ruling, are also likely to face legal challenges.

Experts told Mint that using tariffs as a measure aimed at correcting a balance-of-payments deficit makes no sense where there is no deficit to show.

According to economists at the Penn-Wharton Budget Model (PWBM), the SCOTUS verdict has also opened a path for refund claims worth over $175 billion on the more than $133 billion collected in tariffs so far.

The US Supreme Court's order to invalidate the import tariffs imposed by US President Donald Trump on world nations called the duties illegally imposed using the International Emergency Economic Powers Act (IEEPA) of 1977.

These laws have been traditionally used to address national security threats.

After the Supreme Court ruling, Donald Trump has again announced plans to hike import tariffs to 15%, which, if imposed, will be in addition to the existing MFN or import duties in the United States.

India and the United States representatives were scheduled to meet for their proposed meeting at Washington on Monday, 23 February 2025, however, according to a PTI report, citing people aware of the development the meeting has been rescheduled.

The rescheduling of the three-day meeting for the long-awaited trade deal follows the US Supreme Court's verdict against import tariffs imposed by President Donald Trump on world nations.

Trump imposed a 10% tariff on all countries, including India, effective from 24 February 2026 for 150 days after the court verdict.

There are no limits on the size of Section 301 tariffs. They expire after four years but can be extended, AP reported.

But the government's trade representative must conduct an investigation and typically hold a public hearing before imposing 301 tariffs, the report added.

Experts have said Section 301 is useful in taking on China. But it has drawbacks when it comes to dealing with the smaller countries that Trump has hammered with reciprocal tariffs.

Congress is only entitled to a written statement from the President within 30 days explaining why the action was taken.

There is only one category where Congress has a "veto" over Section 232 actions: Petroleum (oil).

This means Congress can override presidential actions if the President uses Section 232 to adjust oil, petroleum or petroleum product imports.

Congress is only entitled to a written statement from the President within 30 days explaining why the action was taken.

There is only one category where Congress has a "veto" over Section 232 actions: Petroleum (oil).

This means Congress can override presidential actions if the President uses Section 232 to adjust oil, petroleum or petroleum product imports.

Section 232 has no 15% cap on tariffs and no 150-day expiration date. However, its implementations precede an investigation, a report of which must be submitted within nine months (270 days).

The President then has 90 days to decide whether to use their statutory authority. If the President acts, they have 15 days to implement the measure (usually via a Presidential Proclamation).

Congressional approval is not required for the President to impose tariffs or quotas under Section 232.

Section 232 of the 1962 Trade Expansion Act deals with protecting "National Security".

It allows tariffs on imports deemed a "national security" threat, separate from IEEPA.

It empowers the US president to "adjust the imports" of an article where the US Department of Commerce Secretary finds that imports threaten to impair national security, again following an investigation and report.

Temporary import surcharge under Section 122 of the 1974 Trade Act is generally imposed to address “large and serious United States balance-of-payments deficits.”

According to US-based law firm Holland and Knight, any attempt to recreate the Reciprocal Tariffs under Section 122 would need to conform to those limits and satisfy the statute's balance-of-payments criteria.

Section 122 of the 1974 Trade Act grants the US President Balance-of-Payments (BOP) Authority.

Under this section, the President can impose a "temporary import surcharge" (a tariff) of up to 15% or implement import quotas.

These measures are valid for only 150 days — without congressional approval.

However, the President must get a vote of approval from Congress if he/she want to extend these surcharges.

Under the IEEPA, the President, in every possible instance, shall "consult" with the Congress before exercising any of the authorities granted and shall consult regularly with the Congress so long as such authorities are exercised.

Trump had claimed nearly boundless authority to impose tariffs under 1977 International Emergency Economic Powers Act (IEEPA). He never consulted with Congress regarding these tariffs.

While sanctions and asset freezes are allowed under the act, the Supreme Court ruled that IEEPA does not grant the President the power to impose general tariffs.

Title 50 of War and National Defence, under Chapter 35 of the International Emergency Economic Powers, refers to “Unusual and extraordinary threat; declaration of national emergency; exercise of Presidential authorities”

It states that powers granted to the President once he/she declares a national emergency regarding an "unusual and extraordinary threat, "which has its source in whole or substantial part outside the United States.

Calling the SCOTUS ruling ‘extraordinarily anti-American’, US President Donald Trump on 21 February raised global tariffs under Section 122 from 10% to the 15% limit allowed as per the provision.

Trump further said his administration will look into other legally permissible tariffs over the coming months amid allegations that other countries have been ‘ripping off’ the US for decades.

Illinois toy company Learning Resources was among the businesses challenging the tariffs in court, AP reported.

CEO Rick Woldenberg told the publication he expected Trump's new tariffs but hoped there might be more constraint in the future, both legal and political. “Somebody’s got to pay this bill. Those people that pay the bill are voters,” he said.