← Legal Glossary
Section 122 of the Trade Act of 1974
Definition
A trade statute that explicitly authorizes the President to impose tariffs to address 'large and serious' trade deficits, but with strict limits: a maximum 15 percent tariff rate and a 150-day time limit. Challengers cited it as evidence that Congress knew how to delegate tariff authority with proper guardrails.
Examples
- •Challengers argued Section 122 addresses the exact problem cited in the executive order — trade deficits — but with meaningful constraints that IEEPA lacks