GlossaryEN1 min readUpdated: Jul 2, 2026

Section 122

Section 122 of the U.S.

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Last updated: 2 July 2026Published: 23 June 2026

Source: Section 122, U.S. Trade Act of 1974 (19 U.S.C. § 2132); U.S. Court of International Trade, Slip Op. 26-47 (07.05.2026); U.S. Court of Appeals for the Federal Circuit, Aussetzung der Untersagung im Rechtsmittelverfahren (11.06.2026); USTR, Section-301-Vorschläge (Juni 2026)

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Definition & Explanation

Section 122 of the U.S. Trade Act of 1974 authorises the US president to levy a temporary import surcharge of up to 15 percent in order to respond to large and serious US balance-of-payments deficits. The surcharge is limited to 150 days and must apply broadly and uniformly to all countries; an extension requires the consent of Congress. The hitherto rarely used provision gained significance in February 2026: after the US Supreme Court had ruled the reciprocal tariffs based on the emergency-powers statute IEEPA unlawful, the Trump administration replaced them, effective 24 February 2026, with a 10 percent Section 122 surcharge on virtually all imports; an increase to the statutory maximum of 15 percent announced by President Trump on 21 February 2026 was never implemented by legal order, so the operative rate remains 10 percent. The US Court of International Trade also held this basis unlawful on 7 May 2026 in a 2-1 decision; the Court of Appeals (CAFC), however, stayed that injunction pending appeal on 11 June 2026, so CBP continues to collect the surcharge for now. In any event it expires by its terms on 24 July 2026. As a replacement, the USTR is preparing Section 301 measures — including tariffs of 10 to 12.5 percent proposed in early June 2026 in 60 forced-labour investigations — intended to take effect before that expiry. To be distinguished from Section 232 (national security) and Section 301 (unfair trade practices), which are not time-limited. As of July 2026.