Section 122 of the Trade Act of 1974 is a discrete statutory authority separate from (but related to) the broader balance-of-payments tools in the Trade Act. It specifically authorizes the president to impose temporary import surcharges up to 15% for up to 150 days when the nation faces "fundamental international payment problems." This statutory grant makes Section 122 the legal foundation for presidential tariff authority in balance-of-payments emergencies.
The statute requires Congress to be notified and allows Congress to override the tariff within 90 days by majority vote in both chambers. After 150 days, the authority expires unless Congress extends it. Section 122 differs from Section 301 (which targets unfair trade practices) and IEEPA (which courts ruled can't authorize tariffs). It also differs from Section 232 national security tariff authority. Each statute creates separate delegated powers with different procedural requirements and constraints.
The existence of multiple, overlapping tariff authorities reflects Congress's attempt to delegate trade power while retaining checks. Trump invoked Section 122 in February 2026 after IEEPA was struck down, demonstrating how presidents shift among available authorities when one is invalidated.
Multiple tariff statutes create pathways for executive action but also litigation uncertainty about which authorities are durable. Section 122's 150-day window and congressional override option make it Congress's most effective check on presidential tariff power.
People think Section 122 and Section 301 are the same thing or that there's one presidential tariff authority. There are actually multiple tariff authorities with different triggers and constraints—Section 122, Section 301, and Section 232 each grant distinct powers.
Multiple tariff statutes create pathways for executive action but also litigation uncertainty about which authorities are durable. Section 122's 150-day window and congressional override option make it Congress's most effective check on presidential tariff power.
People think Section 122 and Section 301 are the same thing or that there's one presidential tariff authority. There are actually multiple tariff authorities with different triggers and constraints—Section 122, Section 301, and Section 232 each grant distinct powers.