On Friday, the Supreme Court ruled to strike down President Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA). However, Trump is moving quickly to implement tariffs using other legal measures.
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New trading tool for QQQ bulls“Today I will sign an Order to impose a 10% GLOBAL TARIFF, under Section 122, over and above our normal TARIFFS already being charged,” Trump said in a Truth Social post.
Trump Turns to Section 122 and Section 301 to Impose Tariffs
Section 122 of the Trade Act of 1974 allows the president to impose tariffs of up to 15% for a maximum of 150 days, extendable with congressional approval. The statute can be used to address trade deficits, does not require a federal investigation, and has never been invoked by a president until now.
Trump added that he would begin the process of Section 301 investigations. Section 301, under the same trade act as Section 122, authorizes the U.S. Trade Representative to investigate unfair trade practices and the president to impose tariffs or other trade penalties based on those findings.