Trump, Section 122 and Tariff
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After the Supreme Court blocks Trump’s IEEPA tariffs, he turns to Section 122 of the Trade Act of 1974 to impose temporary import duties.
In the immediate aftermath of the U.S. Supreme Court’s decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the Trump administration has moved quickly to replace those tariffs with a new across-the-board tariff under Section 122 of the Trade Act of 1974.
President Trump's novel use of a 1974 trade law to impose a global 15% tariff could be ripe for legal challenges, according to trade experts.
The Supreme Court blocked Trump's IEEPA tariffs, but he has other ways to impose sweeping duties — some of which are already being dusted off.
Switching from the old IEEPA system to a flat 15% Section 122 tariff clearly creates winners and losers among the top US import partners. The biggest winners are countries that were previously hit with high IEEPA rates. They now see those heavy surcharges replaced by a much lower, uniform tariff.
Trump’s 10% Section 122 surcharge keeps tariff exposure intact for construction firms, tightening pricing windows, contract risk and project financing decisions ahead of a 150-day deadline.
NA Within hours of the Supreme Court's decision striking down his massive IEEPA tariffs in our case challenging them,
Some countries could indeed end up with tariffs higher than the 15 percent currently promised by the administration under Section 122 using authorities like Section 301 and Section 232.