- US tariffs increased from 10% to 15% by Trump after Supreme Court ruling on tariffs
- Lawyer Neal Katyal argued 15% global tariffs are illegal under Section 122 emergency powers
- Gita Gopinath agreed with Katyal by saying, 'This is International Economics 101'
Ever since US President Donald Trump increased global tariffs from 10% to 15% after Supreme Court struck down his sweeping tariffs, economists and market analysts have highlighted that even 15% tariff imposed worldwide by the US will be deemed 'illegal'. Indian-origin lawyer Neal Katyal, who argued the case before America's top court, said that if Trump's tariffs are such a good idea, he should have no problem persuading Congress. Katyal's argument is endorsed by former IMF Chief Economist Dr Gita Gopinath.
"Seems hard for the President to rely on the 15% statute (sec 122) when his DOJ, in our case, told the Court the opposite: "Nor does [122] have any obvious application here, where the concerns the President identified in declaring an emergency arise from trade deficits, which are conceptually distinct from balance-of-payments deficits," Neal Katyal said in a post on 'X' (formerly Twitter). He further added, "If he wants sweeping tariffs, he should do the American thing and go to Congress. If his tariffs are such a good idea, he should have no problem persuading Congress. That's what our Constitution requires."
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Are Trump's 15% tariffs also illegal?
Aftre Katyal's comments, netizens have highlighted that the new 15% global tariff rate is also illegal. According to 'X' user Vikas Vij, lead attorney Neal Katyal, who won the SC verdict, said that Trump's DOJ itself submitted in Court that 15% statute cannot be used. He added that the potential impact on India will no tariffs, no $500 billion committment and no trade deal with the US.
According to Vij, Section 122 (15% statute) allows emergency powers to the President to impose up to 15% tariffs as a temporary measure (for up to 5 months) under specific circumstances. Under specific circumstances, Section 122 can only be used when the US faces a Balance-of-Payments crisis. He noted that a BOP crisis occurs when a country's forex reserves are depleted, and it cannot import essential goods or repay its foreign debt obligations.
He reiterated that Neal Katyal highlighted that the Department of Justice (DOJ) representing President Trump had itself submitted in Court: "Section 122 (the 15% statute) is fundamentally different from IEEPA. It can only be used in a Balance-of-Payments crisis, and not as trade tariffs." Now, Trump is saying the opposite. Dr. Gita Gopinath has said that Neal Katyal is right. ''This is International Economics 101. Balance-of-Payments tariffs (special situation tariffs) are separate from Trade Tariffs. Unless there is a BOP crisis in the US Section 122 (15% statute) cannot be applied,'' he wrote on 'X'.
Trump's New 15% Tariffs Are Also Illegal
— Vikas Vij (@TheClubJunto) February 22, 2026
1. Lead attorney Neal Katyal who won the SC verdict says Trump's DOJ itself submitted in Court that 15% statute cannot be used
2. Dr. Gita Gopinath endorses Katyal
3. Potential India Impact: No $500B, no tariffs, no trade deal
DETAILS:…
According to Vij, the potential impact of the 15% global tariff on India is as follow:
a. No Trade Deal: India has not signed any trade deal with the US till now. The Indian trade rep team was supposed to visit the US on Feb. 23 to finalize the legal text of the "interim deal". After the US Supreme Court verdict, everything is off the table. No visits, no "legal text," no deal.
b. India's $500B Import Commitment Over Five Years: Since the deal is off, all bets are off. Japan $550B, South Korea $350B, EU $750B - every country in the world had been forced to make import commitments, not just India. Total $2.4 trillion forced commitments - evaporated in thin air with the US Supreme Court 6-3 verdict.
ALSO READ: Trump Hikes Global Tariff To 15% After Supreme Court's Ruling Against Levies
c. Worst Case Scenario: Even if one assumes that Neal Katyal is wrong, and the Supreme Court will allow Section 122 (15% tariffs) to be imposed - that has an upper limit of just 150 days. After five months, this 15% gets eliminated.
d. The Nightmare Has Ended: As per Vij, there is simply no other legal recourse available to Mr. Trump. It is over. Neal Katyal says he has to go back to the Congress and get its approval if he wants to impose sweeping trade tariffs on the rest of the world.
e. Laughing stock of the World: ''After one year of nonstop drama, aggressive trade negotiations with over 100 countries, and daily Truth Social commentary - Trump and his team suddenly look like fools who did not know the law, the Constitution, and kept on behaving like immature teenagers holding enormous powers,'' he said in his post on 'X'.
f. India-Russia Oil Trade: Once the dust settles on this case, perhaps India may go back to strengthen its traditional trade ties with Russia, and start importing cheap oil once again, according to the 'X' user. Trump has no trade weapon left to arm-twist the sovereign rights of India now regarding who it choose as its trade partners.
g. Trust Gold: The scale of unstable global behavior by the US in the last one year is a historical first. Their debt is out of control, their AI investments are generating no revenues, and their dollar is dying. The golden rule of investing is: When you cannot trust America, trust gold, according to Vij. ''Trump and team repeatedly target India because they hate the extreme success of Indian Americans on their home turf. Ultimately, an Indian American, Neal Katyal, brought them down,'' he concluded.
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