{"id":16603,"date":"2026-02-23T02:50:07","date_gmt":"2026-02-23T09:20:07","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=16603"},"modified":"2026-02-23T02:50:08","modified_gmt":"2026-02-23T09:20:08","slug":"what-is-section-122","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/what-is-section-122\/","title":{"rendered":"Supreme Court Strikes Down Trump Tariffs; Section 122 Emerges as Alternative"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/#What_Is_Section_122_of_the_Trade_Act_of_1974\" >What Is Section 122 of the Trade Act of 1974?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/#IEEPA_Tariff_Ruling_Why_the_Supreme_Court_Intervened\" >IEEPA Tariff Ruling: Why the Supreme Court Intervened<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/#What_Legal_Tools_Remain_for_Trump_Tariffs\" >What Legal Tools Remain for Trump Tariffs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/#US_Tariffs_on_India_After_the_Supreme_Court_Decision\" >US Tariffs on India After the Supreme Court Decision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/#Tariffs_Impact_on_Indias_Negotiation_Position\" >Tariffs&#8217; Impact on India\u2019s Negotiation Position<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>Supreme Court Strikes Down Trump Tariffs; Section 122 Emerges as Alternative<\/strong><\/span><\/span><\/div>\n\n\n<p class=\"wp-block-paragraph\">The US Supreme Court has struck down Donald Trump\u2019s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the law does not authorise the President to levy import duties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Within hours of the decision, Trump signalled he would invoke <strong>Section 122 of the Trade Act of 1974<\/strong> to sustain his tariff strategy under a different legal framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The move reshapes the structure of US trade policy and carries implications for US tariffs on India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Section_122_of_the_Trade_Act_of_1974\"><\/span>What Is Section 122 of the Trade Act of 1974?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Section 122 tariffs<\/strong> allow the US President to impose temporary import surcharges of up to 15% for a maximum of 150 days.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The provision may be used in cases of large balance-of-payments deficits, where imports significantly exceed exports. Unlike IEEPA, Section 122 does not require a formal investigation before action. However, any tariff imposed under this section automatically expires after 150 days unless Congress votes to extend it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IEEPA_Tariff_Ruling_Why_the_Supreme_Court_Intervened\"><\/span>IEEPA Tariff Ruling: Why the Supreme Court Intervened<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">IEEPA was enacted to address national emergencies involving extraordinary foreign threats. Historically, it has been used for sanctions and asset freezes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Supreme Court ruled that the statute does not provide authority to impose tariffs. The judgment restricts the use of emergency economic powers for trade duties but does not eliminate other statutory options available to the administration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Legal_Tools_Remain_for_Trump_Tariffs\"><\/span>What Legal Tools Remain for Trump Tariffs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Following the ruling, Trump announced plans to impose a 10% tariff on imports from all nations under alternative legal provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He also indicated that other statutes remain available, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Section 301<\/strong> \u2013 Used to target unfair trade practices<\/li>\n\n\n\n<li><strong>Section 232<\/strong> \u2013 National security-based tariffs<\/li>\n\n\n\n<li><strong>Section 338<\/strong> \u2013 Tariffs against discriminatory trade practices<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The ruling restricts one route but does not eliminate the broader tariff arsenal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"US_Tariffs_on_India_After_the_Supreme_Court_Decision\"><\/span>US Tariffs on India After the Supreme Court Decision<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For India, the decision introduces both opportunity and uncertainty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Indian exports to the US currently face a 25% tariff. Under the interim trade framework, the rate was expected to decline to 18%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IEEPA tariff ruling briefly raised expectations of a reset to lower Most Favoured Nation rates. However, Trump\u2019s announcement of a 10% global tariff suggests that duties may continue under new statutory provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This keeps <strong>India-US tariff news<\/strong> fluid, especially as a bilateral agreement is expected in the coming weeks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Read About India\u2013<a href=\"https:\/\/shoonya.com\/blog\/india-us-interim-trade-deal\/\" type=\"link\" id=\"https:\/\/shoonya.com\/blog\/india-us-interim-trade-deal\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">US Trade Deal News<\/mark><\/a><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tariffs_Impact_on_Indias_Negotiation_Position\"><\/span>Tariffs&#8217; Impact on India\u2019s Negotiation Position<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The ruling may allow India to renegotiate sensitive areas such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Agriculture access<\/li>\n\n\n\n<li>Cross-border data flows<\/li>\n\n\n\n<li>Oil purchase sovereignty<br><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Trade experts suggest the decision strengthens India\u2019s position before finalising any binding agreement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Supreme Court has drawn legal guardrails around emergency tariff powers. However, Trump tariffs are likely to continue under Section 122 or other trade laws.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For India, the development creates both uncertainty and opportunity. While tariff pressure remains, the legal reset may open space for recalibration in ongoing trade talks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Source:<\/strong> https:\/\/www.moneycontrol.com<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">Disclaimer<\/mark>: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Supreme Court has struck down Donald Trump\u2019s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that the law does not authorise the President to levy import duties. Within hours of the decision, Trump signalled he would invoke Section 122 of the Trade Act of 1974 to sustain his tariff &hellip; <a href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Supreme Court Strikes Down Trump Tariffs; Section 122 Emerges as Alternative&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":16605,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1082],"tags":[9388,9387,9389,9390,9385,9386,9384],"class_list":["post-16603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-india-us-tariff-news","tag-section-122-tariffs","tag-supreme-court-strikes-down","tag-supreme-court-strikes-down-trump-tariffs","tag-trump-tariffs","tag-us-tariffs-india","tag-what-is-section-122"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is Section 122 and How It Could Revive Trump Tariffs<\/title>\n<meta name=\"description\" content=\"The Supreme Court struck down Trump tariffs under IEEPA, but Section 122 could permit temporary duties, keeping US tariffs on India in place.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Section 122 and How It Could Revive Trump Tariffs\" \/>\n<meta property=\"og:description\" content=\"The Supreme Court struck down Trump tariffs under IEEPA, but Section 122 could permit temporary duties, keeping US tariffs on India in place.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/shoonya.com\/blog\/what-is-section-122\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ShoonyaApp\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-23T09:20:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-23T09:20:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2026\/02\/Supreme-Court-Strikes-Down-Trump-Tariffs.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"atulrana\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"What Is Section 122 and How It Could Revive Trump Tariffs\" \/>\n<meta name=\"twitter:description\" content=\"The Supreme Court struck down Trump tariffs under IEEPA, but Section 122 could permit temporary duties, keeping US tariffs on India in place.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2026\/02\/Supreme-Court-Strikes-Down-Trump-Tariffs.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@shoonyaapp\" \/>\n<meta name=\"twitter:site\" content=\"@shoonyaapp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"atulrana\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/what-is-section-122\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/what-is-section-122\\\/\"},\"author\":{\"name\":\"atulrana\",\"@id\":\"https:\\\/\\\/shoonya.com\\\/blog\\\/#\\\/schema\\\/person\\\/753b3e2352dc2915e7069273091f9124\"},\"headline\":\"Supreme Court Strikes Down Trump Tariffs; 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