00:23Breaking just hours after a major
00:26Supreme Court setback, President Donald Trump is escalating his trade fight again.
00:32Despite the court striking down his sweeping tariffs, he has now imposed a new 15% global
00:38tariff on imports, effective immediately.
00:43So what's happening, and why could this trigger another global trade war?
00:47Let's break it down.
00:48On February 20, 2026, the U.S. Supreme Court delivered a major blow to Trump's trade agenda.
00:56The Supreme Court's ruling on tariffs is deeply disappointing, and I'm ashamed of certain
01:05members of the court, absolutely ashamed, for not having the courage to do what's right
01:11for our country.
01:12In a 6-3 ruling authored by Chief Justice John Roberts, the court said clearly, only Congress
01:18has the power to impose taxes.
01:20That means Trump's earlier tariffs, imposed under emergency powers using the International
01:25Emergency Economic Powers Act, went beyond legal limits.
01:30The justices emphasized that emergency authority cannot be used to bypass Congress when it comes
01:36to taxation.
01:37But here's the twist.
01:38Within hours of that decision, Trump announced a new 10% global tariff under a different law,
01:44Section 122 of the Trade Act of 1974.
01:48And by February 23, he escalated it to 15%.
01:53This new tariff applies broadly to imports from most countries.
01:57The White House says this move is meant to combat what Trump calls unfair trade practices
02:01and replace the invalidated duties.
02:03However, this measure can only last up to 150 days unless Congress extends it, and it is
02:09already facing legal scrutiny.
02:12Now the international reaction is heating up.
02:15France's Trade Minister, Nicolas Foressier, says the European Union is ready to retaliate
02:20if the U.S. moves forward.
02:21The EU is coordinating with member states and the European Commission and has powerful tools
02:26on standby.
02:28One option is the anti-coercion instrument, a mechanism that could directly target U.S. technology
02:33companies, services, or exports.
02:35Another is a suspended package of retaliatory tariffs covering more than 90 billion euros
02:40worth of American goods.
02:42That includes agricultural products, aircraft, and consumer items.
02:46Foressier made it clear, if necessary, the EU has the instruments to respond.
02:50This mirrors the tit-for-tat tariff battles of Trump's first term, when American exports
02:54like whiskey, motorcycles, and jeans were hit hard.
02:58So why is this potentially bad news for Trump, and for the U.S. economy?
03:03First, the risk of a full-blown trade war.
03:05If the EU retaliates, and countries like China, Canada, or Mexico follow, American exports
03:10could once again face heavy penalties abroad.
03:13During the 2018-2019 trade tensions, U.S. exports dropped by billions of dollars.
03:18Farmers and manufacturers were among the hardest hit.
03:22Second, tariffs function as taxes on imports.
03:25That means higher prices for American consumers.
03:27Electronics, food, household goods, all could become more expensive.
03:31Past estimates suggest policies like this can cost households between $1,000 and $2,000 annually.
03:36Small businesses may also face supply chain disruptions and higher input costs, again.
03:41Third, the political and legal risks.
03:44The Supreme Court ruling limits executive power on trade.
03:48Legal experts, including Neil Katyal, the lawyer who led the successful challenge against
03:53the original tariffs, say this new 15% measure lacks strong legal footing.
03:57Katyal argues Section 122 was never designed for broad and definite tariffs, and predicts
04:02the policy will not survive another court challenge.
04:04If struck down again, it could weaken Trump's America First trade strategy and raise questions
04:08about executive authority.
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