Impact of 15% Tariff on US Trade Agreements

The US Supreme Court ruled 6-3 that Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act were unlawful, as the power to tax belongs to Congress. In response, Trump enacted a new 15 percent tariff under Section 122 of the Trade Act of 1974, citing trade deficits. This decision raises uncertainty over existing trade agreements with nations like the UK and India, potentially undermining their incentives to comply. The court’s ruling does not affect tariffs imposed under Section 232 for steel and aluminum.