Trump to Raise Tariffs to 15% After Supreme Court Defeat
Is the Trump administration in its right to impose new tariffs under Section 122 or is it time for Congress to step in and avoid arbitrary tariffs?
Above: Donald Trump at a news conference on tariffs at the White House on Feb. 20, 2026. Image credit: Peter W. Stevenson/The Washington Post/Getty Images
The Spin
Anti-Trump narrative
Trump is dragging the U.S. into a new era of uncertainty even after his defeat in the Supreme Court as his "Plan B" tariffs hinge on a balance-of-payments deficit that essentially doesn’t exist, making the first-ever use of Section 122 illegal. It's about time for Congress to step in and reclaim its constitutional trade authority to avoid further arbitrary tariffs.
Pro-Trump narrative
While the Supreme Court decision on tariffs exposed judicial activism at its worst, the Trump administration was quick to impose new tariffs under Section 122. It's certain that, in accounting terms, the balance-of-payments always balances under floating exchange rates, but economists use it to describe sustained external imbalances.
