Trump signals new tariffs plan. Here’s how Section 122 works

(Herb Scribner, Courtenay Brown – Axios) After the Supreme Court’s shock decision on tariffs Friday, President Trump quickly pivoted to another trade law: Section 122 of the Trade Act of 1974. Why it matters: The global break from President Trump’s tariffs will only be temporary. For months, top Trump officials said they had a “Plan B” if the highest court blocked their signature economic policy — which could leave hefty import taxes on foreign consumer goods essentially intact. The big picture: Section 122 will allow Trump to reimpose some sweeping tariffs, at least temporarily. It’s never before been invoked, representing a historic moment for presidential economic policy. Section 122 was designed to address short-term emergencies, not long-term trade policies. Driving the news: Trump said he would sign an executive order to impose 10% tariffs on all nations, replacing part of the tariffs overturned by the Supreme Court on Friday. Trump pointed to other measures to impose tariffs, including Section 232 of the Trade Expansion Act of 1962 — the statute that underpins the administration’s levies on aluminum and steel. Between the lines: Unlike Trump’s International Emergency Economic Powers Act — which the president leaned on to impose broad, unlimited tariffs — Section 122 explicitly limits how long tariffs could be imposed and how high those tariffs could be. “The Supreme Court did not overrule tariffs. They merely overruled a particular use of IEEPA tariffs,” Trump said on Friday, referring to the IEEPA that the Supreme Court said could not be used to impose tariffs. – Trump’s new tariffs plan: How Section 122 and the 10% shift works