BACKGROUND to IEEPA Tariffs and Sec. 122 Tariffs

On February 20, 2026, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. Later that same day, President Trump announced that he was imposing a temporary 10% surcharge on imports using Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132). This is the first time a President has used Section 122.

Section 122 authorizes the President to impose temporary import duties or surcharges "[w]henever fundamental international payments problems require special import measures to restrict imports (1) to deal with large and serious United States balance-of-payments deficits, (2) to prevent an imminent and significant depreciation of the dollar in foreign exchange markets, or (3) to cooperate with other countries in correcting an international balance-of-payments disequilibrium." President Trump's actions have raised questions about the meaning of the term "balance-of-payments deficits" as it is used in Section 122.

Extending the Tariffs. Section 122 authorizes a surcharge for up to 150 days "unless such period is extended by Act of Congress." Congress could consider legislation to extend (or terminate) the surcharge proclaimed by President Trump, although Section 122 does not provide expedited procedures for considering such legislation.

Amending Section 122. If Congress approves or disapproves of Section 122 duties and does not wish to wait for or defer to courts' interpretations of the statute, it could either amend Section 122 or pursue nonbinding measures (such as a simple resolution) to express whether it thinks Section 122's conditions for tariffs are currently satisfied.

See: Proclamation 11012 of February 20, 2026

See: Section 122 of the Trade Act of 1974.

See: CRS Report IF13199.

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On February 20, 2026, the U.S. Supreme Court issued its decision in Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc., two appeals concerning tariffs President Trump had imposed under the International Emergency Economic Powers Act (IEEPA). In an opinion authored by Chief Justice Roberts, the Court held that IEEPA does not give the President authority to impose tariffs.

See: CRS Report LSB11398.

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On April 2, 2025, President Trump declared a separate emergency concerning "a lack of reciprocity in our bilateral trade relationships . . . as indicated by large and persistent annual U.S. goods trade deficits." Based on this declaration, President Trump invoked IEEPA to announce tariffs of at least 10% on imports from almost all U.S. trading partners and higher, country-specific "reciprocal tariffs" for many countries (collectively, the worldwide tariffs). President Trump subsequently modified the trafficking tariffs and the worldwide tariffs several times. The President also cited IEEPA when imposing tariffs on imports from Brazil, India, and various other imports based on emergency declarations.

See: Executive Order 14257 of April 2, 2025 Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits

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On February 1, 2025, President Donald Trump invoked IEEPA to announce tariffs on imports from Canada, Mexico, and the PRC, declaring emergencies largely concerning illicit drugs (the trafficking tariffs).

Executive Order 14193 imposed additional tariff of 25% on products of Canada, effective February 4, 2025.

See: Executive Order 14193 of February 1, 2025 Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border.

Executive Order 14194 imposed additional tariff of 25% on products of Mexico, effective February 4, 2025.

See: Executive Order 14194 of February 1, 2025 Imposing Duties To Address the Situation at Our Southern Border

Executive Order 14195 imposed additional tariff of 10% on products PRC, effective February 4, 2025.

See: Executive Order 14195 of February 1, 2025 Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China