🟠 Trump raises the tariff rate from 10% to 15% under Section 122 - Trade Act of 1974.

This tool allows the President to impose tariffs for up to 150 days without Congressional approval. Highly effective but with fewer political barriers. But it’s important to understand:
- Tariffs under Section 232 (on national security - steel, automobiles…) still remain.
- Tariffs under Section 301 (to punish unfair trade practices - mainly with China) remain unchanged.
-> That means 15% does not replace the entire old structure. It adds on top of the current baseline.
📊 According to Bloomberg’s estimated chart:
- China, India, Brazil, Indonesia are the most affected groups if the 15% scenario is maintained.
- Vietnam, South Korea, Japan are all in the double-digit tariff increase zone.
- Some countries with bilateral agreements are still unclear whether they will get carve-outs or not.
🌍 Initial reactions from countries:
- EU temporarily halts the approval process for the US trade agreement.
- India postpones its US visit to finalize a temporary deal.
- Australia opposes it because the new tariffs are higher than previously expected.
The question is whether the new tariffs will apply to countries that have signed agreements or not? Will it replace the old tariffs or just add up? After 150 days, what mechanism will be used for extension?
The market is not afraid of bad news; it fears policy uncertainty.