What are Sections 232, 301 and 122 of different trade acts? Special sections of US trade laws used by President Donald Trump to impose tariffs explained

What are Sections 232, 301 and 122 of different trade acts? These three US trade laws give the president authority to impose tariffs under specific conditions. Section 232 allows tariffs on imports that threaten national security. Section 301 allows tariffs in response to unfair foreign trade practices like intellectual property theft or forced technology transfer. Section 122 permits temporary tariffs to address large US balance-of-payments deficits. President Donald Trump announced a new 10% global tariff under Section 122 after the Supreme Court struck down some emergency tariffs. Sections 232 and 301 tariffs remain in full force and effect.

What are Sections 232, 301 and 122 of different trade acts?

President Donald Trump announced a new 10% global tariff under Section 122 after the Supreme Court struck down certain emergency tariffs. He said Sections 232 and 301 tariffs remain fully in effect. These three trade laws give the US president authority to impose tariffs under specific conditions.

Trump tariff news: Section 122 global tariff

Trump said, “Today I will sign an order to impose a 10% global tariff under Section 122.” Section 122 allows temporary import surcharges up to 15% or quotas to address large US balance-of-payments deficits. Tariffs under Section 122 last 150 days unless Congress extends them.

Section 232: National security tariffs

Section 232 comes from the Trade Expansion Act of 1962. It allows tariffs or quotas on imports that threaten national security. Trump used Section 232 for 25% steel and 10% aluminum tariffs in 2018. These affected Canada, Mexico, the EU, and other countries. The tariffs under Section 232 remain in place after the Supreme Court ruling, as they are separate from emergency powers.

Section 301: Response to unfair trade practices

Section 301 is part of the Trade Act of 1974. It allows tariffs in response to unfair foreign trade practices. These include intellectual property theft, forced technology transfers, or discriminatory measures. Trump applied Section 301 tariffs against China, reaching 25% on hundreds of billions in goods. The goal was to target anticompetitive behavior.

Section 122: New temporary global tariff

Section 122 authorizes temporary tariffs to correct large trade deficits. Trump’s announcement marks the first use of Section 122. Unlike Section 232 or 301, it does not require formal investigation before tariffs are imposed. The 10% tariff is meant to replace previous emergency tariffs invalidated by the Supreme Court.

Supreme Court reaction and Trump comments

Trump criticized the six Supreme Court justices who struck down his emergency tariffs. He called some justices “unpatriotic” and “disloyal to our Constitution.” Despite this, he emphasized that Section 232 and Section 301 tariffs remain fully in force.

FAQs

Q1: What are Sections 232, 301 and 122 of different trade acts?
Section 232 targets imports threatening national security. Section 301 addresses unfair trade practices. Section 122 allows temporary tariffs to manage US trade deficits.

Q2: What is the impact of Trump’s Section 122 tariff?
The 10% Section 122 tariff is temporary for 150 days. It addresses trade deficits and replaces invalidated emergency tariffs, acting without prior investigation.