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

US President Donald Trump activated Article 122 of the 1974 Trade Act, increasing the newly implemented global customs duty from 10% to 15%. The move escalated the trade offensive just a day after the Supreme Court struck down a key part of the 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 un-American decision on Tariffs issued yesterday” by the Supreme Court.

“I, as President of the United States, will, effective immediately, increase the 10% World Tariff on Countries, many of which have been ‘exploiting’ the United States for decades (until I show up!) to the fully permissible and legally tested level of 15% without penalty,” he wrote.

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

On February 20, 2026, he used IEEP-based tariffs against Mexico, China, and Canada, claiming that they were unable to control the flow of immigrants and fentanyl into the United States.

Trump also said he would consider “other alternatives” to circumvent the Supreme Court’s decision.

Let’s understand what Section 122 is, which Donald Trump invoked to impose global tariffs.

Chapter 122

Section 122 of the Trade Act of 1974 allows the U.S. President to impose tariffs of up to 15% on a country in order to address the “large and serious balance of payments deficit of the United States.” These tariffs may be imposed for a maximum of 150 days unless extended by Congress, and the President must consult with Congress regarding their implementation and continuation. This provision has never been used before. Trump announced on February 20 that he would initiate the Section 122 process to impose a 10 percent global tariff. On February 21, it used the same Part to increase global tariffs from 10% to 15%.

Trump referenced Section 301, 232 and 122 tariffs at a press conference on Friday, after the U.S. Supreme Court said the use of emergency powers granted to them was unlawfully used to impose broad tariffs on imports.

Chapter 301

Under Section 301 of the U.S. Trade Act of 1974, tariffs may be imposed if the U.S. Trade Representative (USTR) finds that a trading partner is engaging in what it considers to be “unfair” trade practices. This mechanism has been previously applied to many countries, including India.

The latest investigation into India was first launched by the Trump administration in 2020 in response to New Delhi’s digital services tax.

Chapter 232

Section 232 of the U.S. Trade Expansion Act of 1962 allows the imposition of tariffs on specific industries, but not generally, if the Secretary of Commerce determines that it is necessary for national security. US presidents sometimes choose not to act on such findings.

The Trump administration has previously used Section 232 tariffs and continues to impose them across multiple industries. For example, India is subject to 232 tariffs on steel and aluminum, automobiles, copper and related products. Companies can sometimes take advantage of exemptions, which are used as a politically acceptable tool to maintain tariffs while limiting their practical impact.

The Supreme Court’s 6-3 decision rejected the Trump administration’s argument that the International Emergency Economic Powers Act allows sweeping missions, the Wall Street Journal reported.

Some reports suggest that goods such as steel and automobiles, which are already covered by the national security tariff, will be exempt from the additional 15% duty.

Looking ahead, the administration is expected to consider imposing more targeted, country- or industry-specific tariffs using Section 301 and Section 232; however, these measures require investigations that may last several months.