Economy|Trade WarTrump’s new tariff threats trigger economic uncertainty; trade deals stallThe White House is set to impose a 15 percent tariff through Section 122 of the Trade Act of 1974 after the US Supreme Court ruled against Donald Trump’s use of the International Emergency Economic Powers Act

The United States Supreme Court recently declared that President Donald Trump's global tariffs, enacted under the International Emergency Economic Powers Act, were unlawful. In response to this decision, President Trump announced on Monday that countries contesting the ruling would face increased tariffs.

President Trump stated that he does not require Congressional approval to enforce tariffs. He plans to implement a 10 percent tariff, escalating to 15 percent by Saturday, under Section 122 of the 1974 Trade Act. This statute allows the White House to impose tariffs for a temporary period of 150 days, after which they would expire unless extended by Congress.

The introduction of these tariffs has generated significant economic uncertainty. Experts indicate that such unpredictability could negatively affect economic activity, investment, and employment. The financial markets have reacted accordingly, with gold prices rising by 2 percent, and major indices such as the Nasdaq, S&P 500, and Dow Jones Industrial Average experiencing declines.

The European Parliament has postponed a vote on a trade agreement with the United States, citing the newly announced tariffs as a potential factor for increased levies on EU exports. The situation will be reassessed on March 4, to determine whether the US will provide clarity and adhere to previous trade commitments.

Based on reporting by Al Jazeera.