Congress, the Balance of Payments, and Tariff Reform

<p>In the wake of the February 2026 Supreme Court ruling on the legality of the International Emergency Economic Powers Act (IEEPA) tariffs, the Trump administration has used alternative authorities to reimpose tariffs, including a 10 percent global tariff under Section 122 of the Trade Act of 1974.</p><p>As written, Section 122 allows the president to impose a temporary import tariff of up to 15 percent to: (1) deal with large and serious US balance of payments deficits, (2) prevent an imminent …