Source: Independent Institute
by Phillip W Magness
“In his latest bid to salvage his protectionist trade agenda, President Donald Trump imposed a new 10% tariff on all imports to the United States. To justify this move, Trump cited the existence of a trade deficit and invoked an obscure clause of the Trade Act of 1974, called Section 122. This clause allows the president to impose tariffs for up to 150 days; however, its provisions only apply in the presence of a ‘large and serious United States balance-of-payments deficits.’ Trump’s use of Section 122 is illegal because the United States does not currently have a balance-of-payments deficit. … He is the first president to attempt to use this clause for a reason. Previous administrations have examined its text in detail and come to the conclusion that Section 122 simply does not apply to common trade deficits.” (03/11/26)
https://www.independent.org/article/2026/03/11/reagan-rejected-trumps-tariff/