If the Supreme Court strikes down nonreciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the Trump Administration reportedly plans to re-impose some of the tariffs by citing authorities in other laws. Some of these provisions, such as Section 301 of the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962, have already been utilized by Trump as well as previous presidents. One never-before used provision that some officials assert Trump can use to immediately impose new tariffs of up to 15% is Section 122 of the Trade Act of 1974.
They are wrong. Section 122 allows for the president to impose temporary tariffs in the case of fundamental international payments problems. The United States does not have an international payments problem, fundamental or otherwise, and has not had one since we adopted a floating exchange rate more than five decades ago. Therefore, Section 122 does not give President Trump the legal authority to impose tariffs.
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