GlossaryEN1 min readUpdated: Jun 26, 2026

Section 122

Section 122 of the U.S.

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Last updated: 26 June 2026Published: 23 June 2026

Source: White House Proclamation „Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems" (Feb. 2026); CBP CSMS #67844987; U.S. Court of International Trade (7. Mai 2026); Global Trade Alert / White & Case LLP, 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 Section 122 surcharge on virtually all imports — initially proclaimed at 10 percent and raised by order of 22 February 2026 to the statutory maximum of 15 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) stayed enforcement, however, 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 June 2026.

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Section 122

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