All articles tagged with #section 122
A U.S. Court of International Trade hearing in New York is considering overturning President Trump's temporary global tariffs after the Supreme Court ruled IEEPA could not justify them; Trump may rely on Section 122 of the Trade Act of 1974, which would allow up to 15% global tariffs for 150 days with congressional approval, but questions remain about its applicability to trade deficits and the tariffs' July 24 expiration.
The U.S. Court of International Trade is hearing arguments to overturn Trump’s temporary global tariffs authorized under Section 122 of the Trade Act of 1974 after the Supreme Court struck down his IEEPA-based tariffs; the 10% (potentially up to 15%) tariffs are set to expire July 24, and the central issue is whether Section 122’s reference to “fundamental international payments problems” can cover a trade deficit, a point critics say is outdated and one the court has suggested may be unnecessary since Section 122 is already available.
After the Supreme Court blocked his initial tariffs, Trump faces new legal challenges to replacement 10% tariffs under Section 122 and a balance-of-payments rationale; foes argue exemptions violate the law's uniformity, while supporters say the president has some leeway. With April hearings and a July expiration looming, a final ruling could come after the tariffs expire, leaving room for potential re-upping or tweaks.
Twenty-four states sue the Trump administration, arguing that new 10% tariffs under Section 122 (potentially rising to 15%) exceed presidential authority after the Supreme Court ruled IEEPA-based tariffs unlawful; they seek a court decision voiding the tariffs and refunds for costs incurred, as the White House defends the measures as restoring fair trade.
Following a Supreme Court ruling that blocked reciprocal tariffs, Trump invoked Section 122 of the Trade Act to impose a new 10% global tariff, later hinted to rise to 15%, creating widespread uncertainty for businesses and consumers as existing trade deals may be overridden, refunds for past levies remain unclear, and higher import costs could push prices higher, with UK exporters potentially facing billions in extra costs and firms considering diversification away from the US.
The Supreme Court ruled that Trump overstepped his authority in using IEEPA to impose tariffs, though tariffs under Section 232 remain; Trump then applied a blanket 15% tariff under Section 122 of the Trade Act of 1974 for 150 days with limited exemptions, unsettling existing trade deals and forcing partners to reassess negotiated rates as the White House signals possible Section 301 actions to restore reciprocal tariffs later.
After a Supreme Court ruling on tariffs, President Trump pivots to Section 122 of the Trade Act of 1974 to temporarily impose 10% tariffs on all foreign goods for up to 150 days, a fast-acting emergency authority that must be extended by Congress to endure; the tool is designed for short-term shocks and sits alongside other levers like Section 232, 301, and 338.
Despite legal setbacks, the Trump administration is likely to continue using various trade laws to impose or threaten tariffs, including Section 122, Section 232, and Section 301, to maintain leverage in trade negotiations and address trade deficits and national security concerns.