President Trump’s latest tariff gambit hinges on a obscure provision: Section 122 of the 1974 Trade Act. Hours after the Supreme Court nixed his earlier tariffs, he activated this clause to impose a 10% surcharge on a broad swath of imports starting February 24, for a 150-day stint. It’s a direct response to America’s ballooning trade gaps, framed as a balance-of-payments crisis.
Diving into the mechanics, Section 122 grants the president extraordinary leeway. He can levy temporary duties or quotas to stem dollar outflows without congressional approval or lengthy reviews. The White House fact sheet spells it out: domestic production shortfalls force heavy reliance on imports, shipping US dollars abroad and weakening the economy.
Not all goods face the hit. Exemptions shield strategic items like rare earth minerals, bullion metals, energy sources, fertilizers, farm products, drugs, electronics, and autos. This selective approach aims to plug the payments leak while safeguarding industries vital to national security and daily life.
Complementing the tariffs, Trump tasked the Trade Representative with Section 301 investigations into foreign barriers that hamstring US exports. ‘Unfair laws and practices abroad are choking American trade,’ officials stated.
Trade watchers note Section 122’s unique edge—no pre-imposition inquiry required, unlike steel or aluminum duties. The tariffs auto-expire after 150 days unless Congress extends them, but the president might loop them back via fresh emergency declarations. This tactic revives Cold War-era tools for modern trade wars, raising questions about long-term viability and global retaliation risks.
With markets volatile and partners on alert, Section 122’s comeback spotlights the lengths Trump will go to rebalance trade. Will it deliver results, or fuel escalation? Only time—and the next 150 days—will tell.