US President Donald Trump has raised US import tariffs from 10 per cent to 15 per cent, the highest level allowed under a rarely used law called Section 122 of the Trade Act of 1974. This comes after the US Supreme Court ruled that Trump's earlier tariff programme was illegal because it lacked proper congressional authority.
Trump turned to Section 122 as a new legal basis so that broad tariff increases can stay in place while his administration works on more permanent trade measures.
What Section 122 Says
Section 122 is a part of the Trade Act of 1974 that gives the US President a temporary authority to impose tariffs without long investigations or detailed reviews. Specifically, the President may impose a temporary import surcharge (tariff) of up to 15 per cent.
The tariff is meant to help address situations where the US faces a “large and serious balance-of-payments deficit”, essentially when the country is importing far more than it exports in a way that hurts its international financial position.
Any tariffs under Section 122 can only last up to 150 days unless Congress votes to extend them.
No formal investigation or multi-agency process is required. The President only needs to make the determination and publish the tariff order.
How Trump Is Using Section 122
After the Supreme Court struck down his earlier tariff framework, which had relied on emergency powers rather than explicit trade law, Trump issued a new order invoking Section 122. This imposed a 10 per cent global tariff on most imports, later increased to 15 per cent, the maximum permitted under the statute.
Trump argues this keeps the tariffs legally valid while his team explores more permanent trade laws or other ways to continue tariffs.
No president has ever used Section 122 before.
Limits And Challenges Of Section 122
- Temporary Only - Tariffs expire after 150 days unless Congress agrees to continue them.
- Narrow Purpose - The law talks about specific economic problems (“balance-of-payments deficits”), not general trade disputes or unfair practices like other laws do.
- Untested in Court - Since this section has never been used before, its application, especially to global tariffs, may face legal challenges.
How Section 122 Fits With Other Trade Laws
Section 301 allows tariffs after investigating “unfair trade practices” by another country. This takes time and case-by-case work.
Section 232 allows tariffs when imports are seen as a threat to national security. Trump used this law before to impose steel and aluminium duties.
