Section 122 of the Trade Act of 1974
Section 122 of the Trade Act of 1974 authorises the President to impose a temporary import surcharge of up to 15% ad valorem for a period not exceeding 150 days to address "large and serious" balance-of-payments deficits. Unlike IEEPA, this is a trade-specific statute with explicit tariff authority but narrower scope and built-in time limits.
- Maximum tariff: 15% ad valorem (Trump initially set 10%, then raised to 15% — the statutory maximum)
- Maximum duration: 150 days, unless extended by an Act of Congress
- Trigger: Presidential determination of a "large and serious" balance-of-payments deficit (no formal investigation or interagency process required)
- Uniform application: Must apply uniformly to all countries; cannot target individual nations
- Historical precedent: Section 122 had never been invoked for tariff imposition before this action
- Legal vulnerability: Trade experts argue that a balance-of-payments deficit (in the technical economic sense) does not exist for the US, as it runs a capital account surplus that offsets the current account deficit
● Tracked since February 20, 2026 · last seen June 23, 2026 · updates as the daily brief publishes
09 May '26
US Court Invalidates Trump's 10% Global Tariffs Under Section 122
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15 Apr '26
India-US Interim Trade Deal: Renegotiation After IEEPA Struck Down
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23 Feb '26
India-US Interim Trade Talks Paused After US Supreme Court Strikes Down IEEPA Tariffs
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22 Feb '26
India Pauses US Trade Talks After Supreme Court Strikes Down Trump's Tariff Authority
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21 Feb '26
Trump's Global Tariff Hike: From 10% to 15% Under Section 122: Mechanism and Impact
Economics
International Relations
International Emergency Economic Powers Act (IEEPA), 1977
International Relations
India-US Bilateral Trade Agreement (BTA)
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IEEPA
International Relations
World Trade Organization (WTO)
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India-US Trade Relations
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Most-Favoured-Nation (MFN) Principle
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