Trump invokes 1974 Trade Act to reinstate 10% global tariffs

WASHINGTON, DC: President Donald Trump announced on Friday, February 20, that he is immediately enacting a 10% global tariff under a trade law known as Section 122.

The move comes just hours after the Supreme Court issued a landmark 6-3 decision finding that the President lacked the authority to impose sweeping tariffs using emergency economic powers.

By shifting to this alternative statute, Trump aims to restore the levies that were struck down earlier in the day. However, the new authority comes with specific limitations; the tariffs can only remain in place for a maximum of 150 days unless Congress grants approval for an extension.

Utilizing Section 122 for immediate levies

Section 122 of the 1974 Trade Act provides the President with the authority to impose tariffs of up to 15% for a temporary period of 150 days.

Trump confirmed to reporters that he would utilize this specific statute to reinstate a 10% global rate, effectively circumventing the high court's restriction on his previous use of emergency statutes.

The President’s quick pivot underscores his administration's determination to keep universal trade barriers as a cornerstone of his economic policy.

Despite the legal roadblocks, the White House maintains that these alternative authorities are legally sound and ready for immediate implementation.

Initiating investigations under Section 301

In addition to the immediate global levies, Trump announced the initiation of several new investigations under a separate trade law known as Section 301.

These investigations serve as necessary precursors for imposing further tariffs and are aimed at "protecting our country from unfair trading practices of other countries and companies".

Trump indicated that these investigations would allow for a more targeted approach to international commerce while ensuring that foreign competitors comply with American standards.

Navigating the 150-day legislative window

While Section 122 provides an immediate path to reinstate the 10% global levies, it places the administration on a strict legislative clock.

The statute’s 150-day limit means the President must secure a formal vote of approval from Congress to maintain the tariffs beyond the summer. 

This requirement sets up a high-stakes confrontation on Capitol Hill, as the President will need to build a majority to sustain his signature trade policy.