Seeds of Wisdom RV and Economics Updates Tuesday Morning 2-24-26

24/02/2026

Good Morning ,

Trump Imposes 15% Global Tariffs After Supreme Court Setback

Section 122 Activated as Economists Challenge “Crisis” Justification

Overview

U.S. President Donald Trump has announced new 15% tariffs on imports from all countries, invoking Section 122 of the Trade Act of 1974 — just hours after the Supreme Court of the United States struck down his previous IEEPA-based tariff framework.

The White House describes the move as necessary to address a “large and serious” balance-of-payments deficit, citing a $1.2 trillion goods trade deficit, a 4% of GDP current account deficit, and a reversal of the U.S. primary income surplus.

Collections began at midnight Tuesday, replacing earlier tariffs ranging from 10% to 50%.

Key Developments

1. Section 122 Tariffs Activated
Section 122 allows tariffs of up to 15% for 150 days to address balance-of-payments concerns. The administration is framing the U.S. trade imbalance as justification for emergency trade measures.

2. Supreme Court Strikes Down Prior Tariffs
The ruling by the Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), prompting the administration to pivot immediately to a different statutory authority.

3. Economists Dispute the “Crisis” Narrative
Former IMF official Gita Gopinath stated that a true balance-of-payments crisis occurs when a country loses market access or faces surging borrowing costs — conditions not currently present in the U.S.

Experts including Mark Sobel, Josh Lipsky, and Brad Setser argue that:

The floating-dollar system remains stable
Treasury yields do not indicate distress
A trade deficit does not equal a balance-of-payments crisis

4. Legal Questions Surround Section 122
Legal scholars such as Neal Katyal have warned that Section 122 may not be designed to address long-standing trade deficits. The statute historically targets short-term balance-of-payments emergencies — not structural trade gaps.

Small-business advocacy groups, including Liberty Justice Center, are monitoring the situation closely, particularly regarding refunds for previously struck-down tariffs.

Why It Matters

This marks a significant escalation in trade policy:

Across-the-board global tariffs
Rapid legal pivot after judicial defeat
Potential new wave of court challenges
Heightened uncertainty for global trade partners

The administration’s framing of a balance-of-payments “crisis” introduces a new legal and economic narrative — one not widely supported by mainstream economists.

Crisis or Strategy? The Battle Over America’s Trade Deficit

Why It Matters to Foreign Currency Holders

For those watching global financial realignment:

Broad tariffs can pressure global supply chains
Trade actions may influence dollar strength and capital flows
Legal instability adds volatility to Treasury and currency markets
Protectionist measures can accelerate de-dollarization discussions abroad

If challenged successfully in court, refund obligations and policy reversals could also impact fiscal planning.

Implications for the Global Reset

Pillar 1: Trade Policy as Monetary Lever

Tariffs are increasingly being used not only for industrial policy but as tools to influence external balances and currency dynamics.

Pillar 2: Legal Limits of Executive Power

The Supreme Court’s intervention underscores growing judicial scrutiny over executive economic authority, adding uncertainty to long-term trade frameworks.

The broader theme: trade, law, and currency policy are converging.

This is not just tariff policy — it’s a recalibration of economic power tools.

Seeds of Wisdom Team View

The $1.2 trillion trade deficit is real — but whether it constitutes a crisis is fiercely debated.

Markets currently show:

Stable Treasury demand
No borrowing-cost surge
Continued dollar reserve dominance

The clash now moves from economics to the courts.

If Section 122 faces similar judicial challenges, trade policy may enter a prolonged period of uncertainty — with ripple effects across markets.

This is not just politics — it’s global finance restructuring before our eyes.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

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Brazil’s Lula Urges BRICS Shift to National Currency Trade

De-Dollarization Debate Moves to Center Stage Ahead of India Summit

Overview

Brazilian President Luiz Inácio Lula da Silva has publicly urged BRICS nations to prioritize trade in national currencies, openly acknowledging that the United States “won’t like it.”

Speaking on Monday, Lula questioned why Brazil must use the U.S. dollar when trading with India or China, arguing that direct currency settlement is both possible and preferable.

The issue is expected to feature prominently at the next **BRICS summit in India.

Key Developments

1. Call to Bypass the U.S. Dollar
Lula emphasized that BRICS members should trade directly in their own currencies, reducing dependence on the dollar in bilateral commerce.

He posed direct questions:

Why must Brazil use the dollar to trade with India?
Why not settle in real and rupee?
Why not use real and yuan for Brazil-China trade?

2. Finance Ministers and Central Banks Tasked
Lula stated that finance ministers and central bank leaders must develop the mechanisms necessary to make national currency settlement operational within BRICS frameworks.

3. Acknowledgment of U.S. Opposition
“The U.S. won’t like it,” Lula admitted — but framed the initiative as a move toward fairer trade and reduced penalties for smaller nations.

4. Timing Amid Global Trade Tensions
The remarks come as several BRICS members have recently negotiated trade arrangements with Washington to avoid tariffs — highlighting the delicate balance between economic alignment and monetary independence.

Why It Matters

This is a direct challenge to the dollar-centric global trade system.

While BRICS has long discussed alternative settlement systems, Lula’s comments signal:

Renewed political momentum
Public framing of de-dollarization
Coordination at the leadership level
Institutional pressure on finance ministries

The debate is no longer theoretical — it is being elevated to summit-level negotiations.

This is not just trade diversification — it’s a strategic shift in settlement power.

Why It Matters to Foreign Currency Holders

For those watching global monetary shifts:

National currency trade reduces structural demand for U.S. dollars
Bilateral settlement agreements reshape foreign exchange flows
Central banks may expand currency swap lines
Commodity pricing mechanisms could gradually diversify

Even incremental changes in settlement practices can alter global liquidity patterns over time.

Implications for the Global Reset

Pillar 1: Payment System Diversification

National currency trade initiatives represent parallel settlement architecture developing alongside the dollar system.

Pillar 2: Sovereign Monetary Autonomy

By promoting local currency usage, BRICS nations are asserting greater control over trade financing and reserve exposure.

If implemented gradually, this shift would not dismantle the dollar overnight — but it could reduce marginal dependency year by year.

This is not just diplomacy — it’s a measured rebalancing of global currency influence.

Seeds of Wisdom Team View

The significance is not in rhetoric — it’s in coordination.

When heads of state publicly instruct finance ministers and central bankers to build non-dollar trade systems, structural change becomes plausible.

Whether execution matches ambition remains to be seen. But the direction is clear:

BRICS is not just expanding — it is exploring monetary independence.

This is not just de-dollarization talk — it’s the architecture of alternative payment rails in motion.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

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🌱 A Message to Our Currency Holders🌱

If you’ve been holding foreign currency for many years, you were not foolish.
You were not wrong to believe the global financial system would change.

What failed was not your patience — it was the information you were given.

For years, dates, rumors, and personalities replaced facts, structure, and proof. “This week” predictions created cycles of hope and disappointment that were never based on how currencies actually change.

That is not your failure.

Our mission here is different: • No dates • No rates • No hype • No gurus

Instead, we focus on:
• Verifiable developments • Institutional evidence
• Global financial structure • Where countries actually sit in the process

Currency value changes only come after sovereignty, trade, banking, settlement systems, and fiscal coordination are in place. History and institutions confirm this sequence.

You will see silence. You will see denials. That is not delay — that is discipline.

Protect your identity. Organize your documents. Verify everything.
Never hand your discernment to anyone who cannot show proof.

You deserve truth — not timelines.