After the US Supreme Court struck down reciprocal tariffs imposed by the Donald Trump administration, the White House has released a Fact Sheet, explaining that Trump has now invoked his authority under “Section 122 of the Trade Act of 1974”, which empowers the President to address certain “fundamental international payment problems” through surcharges and other special import restrictions.
The Proclamation imposes, for a period of 150 days, a 10 per cent “ad valorem import duty on articles imported into the United States. The temporary import duty will take effect February 24 at 12:01 a.m. eastern standard time.”
Notably, some goods will not be subject to the temporary import duty because of the needs of the US economy or to ensure the duty more effectively addresses the fundamental international payments problems facing the United States.
These include certain critical minerals, metals used in currency and bullion, energy, and energy products, natural resources and fertilisers, certain agricultural products, pharmaceuticals and pharmaceutical ingredients; certain electronics; passenger vehicles and more.
In addition, the President has directed the Office of the United States Trade Representative to use its section 301 authority to investigate certain unreasonable and discriminatory acts, policies, and practices that burden or restrict US commerce.
“The United States faces fundamental international payment problems, in particular a large and serious balance-of-payments deficit. As a result of its loss of domestic production, the United States must import much of what it consumes, sending US dollars out of our own economy and overseas,” the statement argued.
Tariffs imposed under Section 122 automatically expire after 150 days unless Congress votes to extend them. While the time limit is explicit, trade experts note that the President could allow the measures to lapse and potentially reintroduce them by declaring a fresh balance-of-payments emergency.
Unlike several other trade laws, Section 122 does not require a formal investigation before tariffs are imposed, allowing rapid action, according to multiple reports. President Trump has also suggested that other trade statutes remain under consideration, underscoring that the Supreme Court ruling targeted a specific legal pathway rather than tariffs themselves.
