Trump’s Tariff Tango
Trump’s back at it with tariffs, this time under Section 122 of the Trade Act of 1974. After the Supreme Court nixed his last tariff attempt, he slapped new duties on imports, claiming they’re crucial to fix trade deficits. The catch? Section 122’s never been used before, and it’s got a five-month shelf life unless Congress steps in.
Democratic attorneys general from states like Oregon, Arizona, California, and New York aren’t having it. They’re suing, arguing these 15% tariffs overreach presidential power and will hike costs for everyone. Oregon’s AG Dan Rayfield says the focus should be on refunds, not more tariffs.
White House Stands Firm
The White House insists Trump is using his powers correctly. Spokesman Kush Desai claims the tariffs address ‘fundamental international payments problems.’ Meanwhile, critics argue Section 122 was never meant for sweeping import taxes, pointing to a New York Federal Reserve study showing tariffs cost Americans $1,200 a year per household.
Arizona AG Kris Mayes highlights the financial burden on families and small businesses. Many states suing now have previously won against Trump’s tariffs under the International Emergency Economic Powers Act, which the Supreme Court recently struck down.
Legal Showdown Looms
Four days post-Supreme Court ruling, Trump invoked Section 122 for 10% tariffs, with plans to hit the 15% cap soon. Treasury Secretary Scott Bessent confirmed the hike. Critics say Section 122 isn’t a valid substitute for the defunct tariffs, as it was designed for different financial crises.
Despite the legal challenges, some analysts believe Trump might have a stronger case this time. The Court of International Trade in New York, set to hear the lawsuit, previously noted Section 122 as a viable option for trade deficits. Meanwhile, Trump’s tariffs on Chinese imports under Section 301 remain untouched.
Quick Facts
- •💡 Trump imposed new tariffs under Section 122 after Supreme Court struck down previous ones.
- •💡 Section 122 allows up to 15% tariffs for five months unless Congress extends.
- •💡 Democratic states argue these tariffs overreach presidential power and raise costs.
- •💡 Section 122 was originally for financial crises in the 1960s and 1970s.
- •💡 The Court of International Trade will hear the states’ lawsuit against the tariffs.