President Trump has issued new 10% tariffs, shortly after raised to 15%, based on Section 122 of the Trade Act of 1974. Section 122 allows the President to impose tariffs of up to 15% for up to 150 days to address a “fundamental international payments problem.” Continuation after 150 days requires congressional approval.
Just like his attempt to impose tariffs under the International Emergency Economic Powers Act, his new Section 122 tariffs are not legal. That’s because the purpose of Section 122 tariffs is to address international payments problems that arise under a fixed exchange rate system. The United States has not relied on fixed exchange rates since Nixon was president.
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