stall

The 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 of 1977.

United States President Donald Trump has ramped up tariff threats following last week’s US Supreme Court decision that ruled that Trump’s sweeping global tariffs, imposed under the International Emergency Economic Powers Act, were unlawful.

On Monday, Trump said that any countries that wanted to “play games” after the high court’s ruling would be hit “with a much higher tariff ” in a post on his social media platform Truth Social.

In a separate post on the platform, Trump claimed that he does not need the approval of the US Congress for tariffs.

“As President, I do not have to go back to Congress to get approval of Tariffs . It has already been gotten, in many forms, a long time ago! They were also just reaffirmed by the ridiculous and poorly crafted supreme court decision!” Trump said in the post.

Trump does have some authority to impose other tariffs, but they are much more limited.

Following the court’s 6–3 decision on Friday, the president said he would introduce a 10 percent tariff, raising it to 15 percent by Saturday under Section 122 of the 1974 Trade Act, the maximum limit under the statute that enables the White House to impose tariffs for 150 days.

The statute only requires a presidential declaration and does not require further investigation. Section 122 is only temporary; the tariffs would then expire unless Congress extends them.

Trump’s tariffs are overwhelmingly unpopular. A new Washington Post-ABC News-Ipsos poll found that 64 percent of Americans disapprove of the president’s handling of tariffs.

Looming uncertainty

Experts warn that Trump’s newly imposed tariffs will fuel further economic uncertainty.

“What we do know is that it would continue to require all those parties affected to continue to live in uncertainty and, as many have already pointed out, such uncertainty is not good for our economy and has negative impacts on American consumers,” Max Kulyk, partner and CEO of Chicory Wealth, a private wealth advisory firm, told Al Jazeera.

“It’s impossible to plan. You hear that tariffs are off, and you are considering how to get refunds. Then a few hours later, it’s 10 percent. Then it’s 15 percent the next day…. Not having that stable framework is hurtful for activity, hiring, investment,” Gregory Daco, chief economist at EY-Parthenon, told the Reuters news agency.

Gold, which is considered a safe investment in times of economic uncertainty, surged by 2 percent on Monday, hitting a three-week high as tariff pressures remain unclear.

US markets are also taking a hit. The tech-heavy Nasdaq is down 1.1 percent in midday trading. The S&P 500 is also down by 1 percent, and the Dow Jones Industrial Average slumped by 1.5 percent since the market opened on Monday.

Stalling trade deals

Trump’s erratic approach has also deterred movement on looming trade deals.

On Monday, the European Parliament opted to postpone voting on a trade deal with the US. It is the second time the bloc has pushed back the vote. The first was in protest against Trump’s unsolicited attempts to acquire Greenland.

The assembly had been considering removing several European Union import duties on US goods. Committee chair Bernd Lange said the new temporary US tariff could mean increased levies for some EU exports, and no one knew what would happen after they expire in 150 days. EU lawmakers will reconvene on March 4 to assess if the US has clarified the situation and confirmed its commitment to last year’s deal.

Published on 20/02/2026 – 12:34 GMT+1•Updated
12:35

European steel shipments to the US declined 30% between June and December 2025 compared with the same period a year earlier, according to recent Eurostat data compiled by Eurofer, the Brussels-based industry group.

ADVERTISEMENT

ADVERTISEMENT

The decline underscores the impact of the US’s 50% tariffs on EU steel, even after the EU and US signed a trade agreement in July 2025 agreeing a blanket 15% US tariff on EU goods. Steel was carved out of that deal and talks to ease duties remain stuck.

“A 30% drop in steel exports to the US within just six months is a clear signal that the blunt 50% tariffs imposed by the US government on EU steel are damaging our industry,” Eurofer Director general Axel Eggert said.

“The US decision to include EU downstream steel products, such as machinery, will have another huge negative impact on us and our European customers,” he added.

Washington imposed 50% tariffs on EU steel and aluminium in June 2025 and extended the measures to more than 400 steel and aluminium products in August.

Steel talks tied to EU-US trade deal enforcement

The US has framed the tariffs as a shield against Chinese overcapacity flooding global markets, including Europe.

With Chinese exports increasingly redirected from the US to the EU, the European Commission proposed on 7 October 2025 to halve the volume of steel allowed into the bloc duty-free and to levy a 50% tariff on imports exceeding a quota of 18.3 million tons a year.

The proposal steel needs to be adopted by the EU legislator. Meanwhile Brussels itself hopes to reopen talks with the White House to secure lower duties on EU steel.

But US negotiators have linked any resumption of discussions to the implementation of last summer’s EU-US trade deal, struck by Commission President Ursula von der Leyen and President Donald Trump. Under that pact, the EU agreed to cut its tariffs on US goods to zero while accepting 15% duties on its exports to the US.

With the EU legislative process still requiring approval from lawmakers and member states, Washington’s patience is wearing thin. Tensions could rise further after EU lawmakers introduced amendments that may complicate talks with capitals.

The European Parliament is expected to vote on the deal in March, paving the way for negotiations with member states.

The talks stalled on the European side after the US threatened to annex Greenland militarily from Denmark in January. Although the US has softened its language, it led to delays. The administration’s continuous lobbying for less stringent rules when it comes to digital legislation in Europe has also added obstacles to the talks.

Democrats have called for a ban on immigration agents wearing masks and are pushing for increased oversight of their operations.

The United States Department of Homeland Security (DHS) ran out of funding over the weekend, leading to the third partial government shutdown of President Donald Trump’s second term, as negotiations between Republicans and Democrats remain stalled while Congress is in recess until February 23.

Democrats are calling for changes to the DHS’s immigration operations after two fatal shootings of US citizens in the city of Minneapolis last month. Alex Pretti and Renee Good were shot dead by federal officers from Immigration and Customs Enforcement (ICE) and Border Patrol during such operations.

On Monday, state officials in Minnesota said that the FBI has refused to share evidence with state law enforcement following Pretti’s killing on January 24.

“This lack of cooperation is concerning and unprecedented,” Minnesota’s Bureau of Criminal Apprehension superintendent, Drew Evans, said in a statement.

DHS entered a shutdown on Saturday, but will continue operations deemed essential. Cuts affect agencies under the DHS, including the Transportation Security Administration (TSA), the Federal Emergency Management Agency (FEMA), Customs and Border Protection (CBP) – which runs Border Patrol – ICE, and the US coastguard.

At US airports, 2,933 of the TSA’s 64,130 employees have been furloughed for the duration of the shutdown. The remaining 95 percent of staff will remain on duty but will work without pay until the DHS is funded.

Earlier this month, Democrats sent Republicans a list of 10 demands to rein in immigration enforcement. In a letter, authored by House of Representatives Minority Leader Hakeem Jeffries, the politicians called for increased oversight of the DHS.

The letter called for DHS officers not to enter private property without a judicial warrant and to require verification that someone is not a US citizen before placing them in immigration detention. It also called for DHS to mandate that its officers do not wear masks, have visible identification, and wear clear uniforms.

Democrats are also seeking to prohibit immigration enforcement actions near courts, medical facilities, houses of worship, schools, and polling places.

They further called for increased coordination with local and state agencies after the federal government blocked state and local law enforcement from participating in investigations related to the deaths in Minneapolis.

“Federal immigration agents cannot continue to cause chaos in our cities while using taxpayer money that should be used to make life more affordable for working families,” Jeffries said in the letter.

“The American people rightfully expect their elected representatives to take action to rein in ICE and ensure no more lives are lost. It is critical that we come together to impose common sense reforms and accountability measures that the American people are demanding.”

Tom Homan, Trump’s border chief, dismissed the calls from Democrats on CBS’s Face the Nation, referring to the requests as “unreasonable”.

Republican Senator Markwayne Mullin of Oklahoma, meanwhile, echoed Homan’s stance. On CNN’s current affairs programme, State of the Union, he claimed that Democrats are engaging in “political theatre”.

Feb. 1 (Asia Today) — South Korea’s efforts to head off a proposed 25% U.S. tariff increase stalled after trade talks in Washington ended without agreement, prompting the auto industry to accelerate investment plans in the United States.

Trade, Industry and Energy Minister Kim Jeong-kwan returned to South Korea after two days of discussions with U.S. Commerce Secretary Howard Lutnick on President Donald Trump’s proposed reciprocal tariff hike. The talks, held Wednesday and Thursday in Washington, concluded without concrete results, the ministry said.

During the meetings, Kim stressed that South Korean companies were prepared to expand U.S. investment and said the government was coordinating with the National Assembly to swiftly pass a special law aimed at supporting large-scale Korean investment in the United States.

The proposed legislation is intended to reduce uncertainty for Korean firms and institutionalize strategic economic cooperation between the two countries. Seoul argued that the bill would boost U.S. job creation and economic growth.

U.S. officials, however, reportedly questioned whether the Korean government’s position would translate into concrete action, signaling that legislative intent alone would not be sufficient.

The stalled talks have heightened concerns in South Korea’s auto industry. Hyundai Motor Group, a major exporter to the U.S., is expected to adjust its existing investment strategy to accelerate the pace of spending.

Hyundai Motor President José Muñoz told The Wall Street Journal on Friday that he believes President Trump understands Hyundai’s commitment to the U.S. market and said the company is focused on speeding up its investment plans.

Hyundai previously announced plans to invest $26 billion (about 37.7 trillion won) in the United States by 2030, with a goal of locally producing 80% of the vehicles it sells there.

Industry analysts expect uncertainty surrounding the proposed tariff hike to continue until at least mid-March, as South Korea’s National Assembly plans to process the U.S. investment bill in late February or early March.

Democratic Party policy chief Han Jeong-ae said the bill would first be reviewed by the National Assembly’s finance and economy committee, adding that passage is likely within that timeframe.

The Trump administration has previously indicated it would not discuss tariff reductions until the legislation is approved, suggesting that negotiations on easing the proposed 25% tariff may resume only after the bill’s passage.

Some experts described the tariff threat as a temporary pressure tactic. Kim Pil-soo, a professor of automotive engineering at Daelim University, said the move appears aimed at showcasing policy achievements ahead of U.S. midterm elections, adding that continued investment and passage of the bill could eventually lead to a resolution.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260201010000191