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Sunday, February 22, 2026

What is Section 122 of 1974 Trade Act? Trump used to lift global tariffs from 10% to 15%

US President Donald Trump increased a newly imposed global tariff to 15% from 10%, invoking Section 122 of the Trade Act of 1974, a step that escalates his trade offensive just a day after the Supreme Court struck down significant parts of his previous tariff regime.

In a post on Truth Social, Trump said the increase followed “a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday” by the Supreme Court.

“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been ‘ripping’ the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level,” he wrote.

Earlier, Trump had invoked the International Emergency Economic Powers (IEEP) Act on April 2, 2025, to impose “reciprocal tariffs” on countries.

He used IEEP based tariffs on Mexico, China, and Canada, citing their alleged failure to control the flow of migrants and fentanyl into the US On February 20, 2026.

Trump also said that he would consider “other alternatives” to bypass the Supreme Court’s ruling.

Lets understand what is Section 122 that Donald Trump has invoked to impose global tariffs.

Section 122

Section 122 of the Trade Act of 1974 allows the US President to impose tariffs of up to 15% on a country to address “a large and serious United States balance-of-payments deficit.” Such tariffs can be applied for a maximum of 150 days unless extended by Congress, and the President must consult Congress on their implementation and continuation. This provision has never been used before. Trump announced that he would initiate a Section 122 process on February 20, to impose a 10% global tariff. And on February 21, he raised the 10% global tariffs to 15% using same Section.

Trump referenced Section 301, 232 and 122 tariffs during his press conference on Friday after the US Supreme Court said his use of emergency powers granted by them was unlawfully used to impose sweeping tariffs on imports.

Section 301

Under Section 301 of the US Trade Act of 1974, tariffs can be imposed if the US Trade Representative (USTR) determines that a trading partner has engaged in what it considers “unfair” trade practices. This mechanism has previously been applied to several countries, including India.

The most recent probe against India was launched in 2020 by the first Trump administration in response to New Delhi’s digital services tax.

Section 232

Section 232 of the US Trade Expansion Act of 1962 allows tariffs to be imposed on specific sectors, not broadly,when the Secretary of Commerce determines they are necessary for national security. US presidents have occasionally chosen not to act on such findings.

The Trump administration has previously used Section 232 tariffs and continues to apply them across multiple sectors. For example, India is subject to 232 tariffs on steel and aluminium, automobiles, copper, and related products. Companies can sometimes obtain exemptions, which has been used as a politically acceptable means to maintain tariffs while limiting their practical impact.

According to the report of the Wall Street Journal, the Supreme Court’s 6-3 ruling rejected the Trump administration’s argument that the International Emergency Economic Powers Act authorised the sweeping duties.

Some reports suggest, goods already under national security tariffs, such as steel and automobiles, would be exempt from the additional 15% levy.

Looking ahead, the administration is expected to consider using Section 301 and Section 232 to impose more targeted, country- or sector-specific tariffs, although these measures require investigations that may take several months.

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