# TrumpAnnouncesNewTariffs

#TrumpAnnouncesNewTariffs
Trump’s Section 122 Tariffs – Market & Crypto
TL;DR: After the U.S. Supreme Court (Feb 20, 2026) struck down broad IEEPA tariffs, President Donald J. Trump invoked Section 122 of the Trade Act of 1974, imposing a temporary 10% global import duty (effective Feb 24). Exemptions include USMCA goods, food, critical minerals, certain pharmaceuticals, electronics, and items under existing Section 232/301 tariffs. Trump signaled a potential 15% increase via Truth Social, but only 10% is currently enforced.
Explanation: The Supreme Court blocked the previous emergency tariffs (IEEPA), so Trump used Section 122 as a legal workaround to impose a temporary, broad import tax without violating the court ruling.
Impact: Global uncertainty → USD safe-haven strength (DXY +0.5–1%), higher import costs (~$700+ household impact in the U.S.), and risk-off sentiment across equities, commodities, and crypto. BTC fell from ~$67–68k → ~$63,500–65,000, with leveraged crypto liquidations totaling $100–445M+.
1. Context
Trump’s stance: Uses tariffs to protect American industries, reduce trade deficits, and gain negotiation leverage.
Section 122 authority: Allows temporary surcharges up to 15% for 150 days to address international payment imbalances; requires Congressional approval for extensions.
Purpose: Rebalance trade, protect jobs, and counter perceived unfair practices.
Legal background: SCOTUS ruling (Learning Resources, Inc. v. Trump) invalidated IEEPA authority; Section 122 is a narrower, legally valid option.
Section 122 is a temporary tool; it is legally safer and allows Trump to continue using tariffs as leverage without broad emergency powers.
2. Timeline
Feb 20: SCOTUS strikes down IEEPA tariffs; Trump signs Section 122 proclamation for 10% duty.
Feb 21: Trump signals 15% increase via Truth Social; implementation pending.
Feb 24+: 10% tariff enforced; allies consulted for exemptions/damage control.
Ongoing: No broad 15% yet; potential targeted hikes, Section 301 investigations, and geopolitical risks (Middle East) influence markets.
Markets are watching not only the tariff itself but also potential escalation or negotiations with allies.
3. Market & Crypto Reaction
BTC: ~$63,500–65,800 (from ~$67–68k highs).
Altcoins: ETH ~$1,900, SOL, XRP, DOGE down 5–9%+.
Equities: S&P/Nasdaq -1–3%; tech/import-sensitive sectors hit hardest.
USD/DXY: +0.5–1% due to safe-haven demand.
Liquidations: $100–445M+ in leveraged crypto wiped out.
Crypto is highly sensitive to macro shocks and leverage; sudden tariff announcements amplify price swings.
4. Medium-Term Outlook (30–90 Days)
Scenario
BTC / Crypto Impact
Tariffs ~10%
BTC/equities rebound 10–20%+
15% / new probes
BTC $60–62k; altcoins -10%+
Block/expiry
Relief rally; BTC +15–30%
Expanded 301/232
BTC $55–60k; prolonged downside
BTC Levels: Support $62–63k | Resistance $65–66k
Explanation: BTC support/resistance levels indicate potential points of short-term rebounds or further dips depending on policy escalation.
5. Regional / Karachi Perspective
PKR/USD: Added pressure → imported electronics, fuel, machinery costlier → local inflation acceleration.
Crypto trading: High volatility; leverage risky for local traders.
Hedge: Use stablecoins (USDT/USDC) to mitigate PKR depreciation risk.
Explanation: Karachi traders face amplified currency and crypto risks; hedging is essential.
6. Key Takeaways
10% global duty (potential 15%) under Section 122 is temporary but market-moving.
Short-term: Risk-off → BTC dips, leveraged liquidations, USD strength.
Medium-term: Likely a negotiation tool; rebounds expected if escalation avoided.
BTC/crypto: Risk assets in geopolitical/trade shocks; volatility elevated.
Macro fundamentals: Core adoption, cycles, and long-term trends remain intact.
While tariffs cause immediate market shocks, the underlying crypto and macro fundamentals remain solid; disciplined trading and verified information are critical.

#TrumpAnnouncesNewTariffs
President Donald J. Trump announced a major new tariff policy in late February 2026, shortly after a U.S. Supreme Court ruling invalidated many of his earlier tariffs under the International Emergency Economic Powers Act (IEEPA). This swift pivot uses alternative legal authority to maintain aggressive trade measures aimed at correcting trade imbalances, protecting U.S. industries, and prioritizing American workers and manufacturers.
Key Points of the Policy
Legal Basis
Invoked Section 122 of the Trade Act of 1974, allowing temporary import surcharges up to 15% for 150 days to address large balance-of-payments deficits or dollar depreciation risks.
Tariff Details
Initial rate: 10% ad valorem on most imported articles, effective February 24, 2026.
Trump announced an increase to 15% (statutory maximum) shortly after, but as of late February, it remains at 10% pending formal implementation.
Temporary duration: 150 days (ends ~July 24, 2026), unless extended by Congress.
Scope & Exemptions
Broad coverage of ~$1.2 trillion in annual imports (~34% after exemptions).
Major exemptions include: critical minerals, energy, certain agriculture, pharmaceuticals, electronics, vehicles/parts, aerospace, USMCA-compliant goods from Canada/Mexico, and more — designed to protect essential supply chains.
Related Actions
Ended prior IEEPA tariffs.
Continued suspension of de minimis duty-free treatment for low-value shipments.
Preserved existing Section 232 (steel/aluminum) and Section 301 (China) tariffs.
Signals of future expansions via Section 301/232.
Administration Commentary
Framed as essential for national security, fair trade, reshoring production, and worker benefits. Trump emphasized tariffs as a negotiation tool and potential long-term replacement for parts of the income tax system.
Economic & Market Reactions
Activated at 10%, causing short-term market volatility and confusion.
Estimated household cost increase of $65K–$68K range), but prolonged trade friction could add further downside pressure.
Broader Implications & Risks
Shows Trump’s “America First” resilience despite legal setbacks.
Temporary nature creates urgency for negotiations or congressional extension.
Risks include legal challenges, retaliation, inflation, alliance strains, and volatility in risk assets like crypto.
Positions tariffs as central U.S. trade tool into 2026–2027, with potential for escalation.
In summary, this 10% (potentially rising to 15%) global import surcharge under Section 122 is a bold, time-limited response to the Supreme Court ruling. It sustains protectionist momentum, overcomes immediate legal hurdles, and introduces short-term uncertainty — including notable downward pressure on cryptocurrencies — while signaling tougher trade actions ahead.