SECTION 122 LITIGATION

Section 122 of the Trade Act of 1974 grants a U.S. President legal authority to impose temporary import surcharges of up to 15 percent, for no more than 150 days, to address large and serious United States “balance-of-payments deficits”.

Unlike the IEEPA tariffs, Section 122 contains its own express statutory rate ceiling and duration limit, and legal questions have arisen over what the executive branch must do to establish a “balance-of-payments deficit” and how the executive can invoke section 122 to impose tariffs.

As a result, the litigation tests the boundaries of Section 122, including the scope of presidential discretion under the statute, and the legal implications for importers who may choose to seek refunds.

We summarize the key legal arguments, procedural posture, and developments as the cases progress.

Key Documents

Feb. 25, 2026 — Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems, 91 Fed. Reg. 9,339 (Feb. 25, 2026), available at https://www.federalregister.gov/documents/2026/02/25/2026-03824/imposing-a-temporary-import-surcharge-to-address-fundamental-international-payments-problems.

Feb. 23, 2026 — U.S. Customs & Border Prot., CSMS #67844987, Imposing Temporary Section 122 Duties (Feb. 23, 2026), available at https://content.govdelivery.com/bulletins/gd/USDHSCBP-40b3b7b.

Feb. 20, 2026 — White House, Fact Sheet: President Donald J. Trump Imposes a Temporary Import Duty to Address Fundamental International Payment Problems (Feb. 20, 2026), available at https://www.whitehouse.gov/fact-sheets/2026/02/fact-sheet-president-donald-j-trump-imposes-a-temporary-import-duty-to-address-fundamental-international-payment-problems/.

Feb. 20, 2026 — Exec. Order No. 11,012, Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems, 91 Fed. Reg. 9,339 (Feb. 25, 2026), available at https://www.whitehouse.gov/presidential-actions/2026/02/imposing-a-temporary-import-surcharge-to-address-fundamental-international-payments-problems/.