What is Section 122?

By [ Blake Harden ]
06/05/2025

In the past few months, President Trump has been using something called the International Emergency Economic Powers Act, or IEEPA, to unilaterally impose tariffs, but recently the courts have begun to signal that may not have the authority under IEEPA to impose such sweeping measures.

But there is another law that President Trump might be able to invoke, which comes with a crucial caveat.

Section 122 of the Trade Act of 1974 grants the President the authority to impose temporary import restrictions—such as tariffs or quotas—on goods from other countries under specific conditions. Unlike other provisions that require lengthy investigations or international coordination, Section 122 is designed to be a more immediate tool for addressing urgent trade imbalances or retaliatory actions.

Specifically, Section 122 allows the President to impose duties of up to 15% or quotas for up to 150 days on imports from all countries, or selectively against countries that maintain unjustifiable or unreasonable restrictions on U.S. commerce. This authority is intended to give the executive branch flexibility to respond quickly to trade practices that may harm U.S. economic interests or to correct significant balance-of-payments deficits.

For retailers, Section 122 is problematic because it introduces a layer of unpredictability into the trade environment. While the provision has rarely been used, the court’s moves to block IEEPA tariffs could thrust it into the limelight.

The provision was originally conceived as a safeguard mechanism, giving the U.S. government a way to respond to economic emergencies or retaliatory trade actions without waiting for multilateral processes to unfold.

While Section 122 gives the President the authority to impose temporary tariffs or quotas for up to 150 days, any extension beyond that period requires an act of Congress. This safeguard was built into the Trade Act of 1974 to ensure that longer-term trade restrictions undergo legislative scrutiny and reflect broader political consensus.