Track Section 122 Tariffs News

After the Supreme Court struck down the Trump administration's use of the International Emergency Economic Powers Act (IEEPA) for imposing tariffs, the administration pivoted to Section 122 of the Trade Act of 1974 as its new legal authority for tariffs. This regime change has created significant uncertainty in global trade policy. Section 122 allows the president to impose temporary tariffs of up to 15% for 150 days to address balance-of-payments deficits, a narrower authority than the sweeping IEEPA powers previously used. The transition has disrupted existing tariff schedules, created confusion for importers and customs authorities, and sparked a new round of legal challenges over whether Section 122's conditions are actually met. Markets are grappling with both the immediate tariff restructuring and the longer-term question of whether any presidential tariff authority will survive further judicial review.