Section 122 of the Trade Act of 1974 authorizes presidents to impose temporary import surcharges—capped at 15%—to address "fundamental international payment problems" such as a balance-of-payments deficit. Unlike IEEPA (which courts ruled doesn't authorize tariffs), Section 122 explicitly references tariffs and has survived legal challenge.
The statute expires after 150 days unless Congress votes to extend it, giving Congress an explicit check not present in IEEPA. Congress can override the tariff within 90 days by a simple majority in both chambers. Trump invoked Section 122 on Feb. 20, 2026, the same day the Supreme Court struck down his IEEPA tariffs, imposing a 10% global surcharge that he later raised to the maximum 15%. The tariff was set to expire July 24, 2026.
Section 122 sits between pure presidential discretion and congressional control. It grants significant unilateral presidential authority but with a hard expiration and congressional override option. This balance makes it more durable than other emergency authorities.
Section 122 shows how Congress can grant presidents crisis authority while retaining a safety valve. The 150-day window and override provision create leverage for Congress to modify or revoke presidential tariff decisions.
People think tariff authority belongs entirely to Congress. Congress delegated significant tariff power to the president under Section 122, though with limits.
Section 122 shows how Congress can grant presidents crisis authority while retaining a safety valve. The 150-day window and override provision create leverage for Congress to modify or revoke presidential tariff decisions.
People think tariff authority belongs entirely to Congress. Congress delegated significant tariff power to the president under Section 122, though with limits.