After the US Supreme Court invalidated reciprocal tariffs set by the Trump administration, the White House has introduced a Fact Sheet. This action is based on “Section 122 of the Trade Act of 1974,” allowing the President to tackle specific international payment issues through surcharges and import restrictions. Effective February 24, a 10% import duty will be imposed on certain articles entering the US for 150 days.
Some goods are exempt from this duty to support the US economy and address international payment challenges effectively. These exclusions cover critical minerals, currency metals, energy products, agricultural items, pharmaceuticals, electronics, and passenger vehicles. Additionally, the President has instructed the US Trade Representative’s Office to investigate unfair trade practices affecting American commerce.
The US is grappling with significant international payment problems, notably a substantial balance-of-payments deficit. Due to heavy reliance on imports, US dollars flow out of the economy, necessitating corrective measures. Tariffs under Section 122 will automatically end after 150 days unless extended by Congress. While this provision has a time limit, the President can reapply tariffs by declaring a new payment emergency.
Unlike some trade laws, Section 122 allows swift tariff imposition without prior investigations. President Trump hints at exploring other trade statutes, emphasizing that the Supreme Court decision targeted a specific legal route rather than tariffs themselves.
