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US Slaps 10% Global Tariffs for 150 Days Using 1974 Trade Act Power

The White House has imposed a 10% tariff on most imports into the United States for 150 days, invoking Section 122 of the Trade Act of 1974. The action, effective February 24, aims to address what it calls "fundamental international payment problems" and a serious balance-of-payments deficit. Significant exemptions apply to critical goods like minerals, energy products, pharmaceuticals, and passenger vehicles. These tariffs will automatically expire unless Congress votes to extend them, and the President retains the ability to potentially reintroduce them.

Key Points: US 10% Global Tariffs: 150-Day Impact & Exemptions

  • 10% tariff on most imports for 150 days
  • Exempts critical minerals, energy, pharmaceuticals
  • Based on Section 122 of 1974 Trade Act
  • Targets US balance-of-payments deficit
  • Tariffs auto-expire unless Congress extends
2 min read

Explained: 10 pc US tariffs for 150 days globally under Section 122

US imposes 10% tariffs globally for 150 days under Section 122, citing payment deficits. Key exemptions include minerals, energy, and pharmaceuticals.

"The United States faces fundamental international payment problems, in particular a large and serious balance-of-payments deficit. - White House Statement"

New Delhi, Feb 21

After the US Supreme Court struck down reciprocal tariffs imposed by the Donald Trump administration, the White House has released a Fact Sheet, explaining that Trump has now invoked his authority under "Section 122 of the Trade Act of 1974", which empowers the President to address certain "fundamental international payment problems" through surcharges and other special import restrictions.

The Proclamation imposes, for a period of 150 days, a 10 per cent "ad valorem import duty on articles imported into the United States. The temporary import duty will take effect February 24 at 12:01 a.m. eastern standard time."

Notably, some goods will not be subject to the temporary import duty because of the needs of the US economy or to ensure the duty more effectively addresses the fundamental international payments problems facing the United States.

These include certain critical minerals, metals used in currency and bullion, energy, and energy products, natural resources and fertilisers, certain agricultural products, pharmaceuticals and pharmaceutical ingredients; certain electronics; passenger vehicles and more.

In addition, the President has directed the Office of the United States Trade Representative to use its section 301 authority to investigate certain unreasonable and discriminatory acts, policies, and practices that burden or restrict US commerce.

"The United States faces fundamental international payment problems, in particular a large and serious balance-of-payments deficit. As a result of its loss of domestic production, the United States must import much of what it consumes, sending US dollars out of our own economy and overseas," the statement argued.

Tariffs imposed under Section 122 automatically expire after 150 days unless Congress votes to extend them. While the time limit is explicit, trade experts note that the President could allow the measures to lapse and potentially reintroduce them by declaring a fresh balance-of-payments emergency.

Unlike several other trade laws, Section 122 does not require a formal investigation before tariffs are imposed, allowing rapid action, according to multiple reports.

President Trump has also suggested that other trade statutes remain under consideration, underscoring that the Supreme Court ruling targeted a specific legal pathway rather than tariffs themselves.

- IANS

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Reader Comments

R
Rohit P
The exemptions list is telling. They are protecting their own critical industries while taxing everyone else. "Fundamental international payment problems" sounds like a fancy way of saying their trade deficit is huge. Hope our trade negotiators are already working on this. 🇮🇳
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David E
From a policy perspective, Section 122 allowing action without a formal investigation is concerning. It bypasses due process and can be used arbitrarily. While the US has the right to address its balance of payments, this method sets a bad precedent for global trade governance.
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Anjali F
Another round of uncertainty for businesses. Just when we thought some stability was returning. The focus should be on boosting domestic production, not just slapping tariffs. "Sending US dollars out of our own economy" – well, that's how global trade works! 🤷‍♀️ Time for India to strengthen ties with other blocs.
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Karthik V
The silver lining is the exemption for pharmaceuticals and certain electronics. A lot of our API exports and IT hardware might be safe, at least for now. But the "Section 301 investigation" part is more worrying. That's where they can really target specific countries. We need to be prepared.
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Sarah B
Respectfully, while I understand the US perspective, this constant use of executive power for trade policy creates immense volatility. For developing economies like India that are trying to plan long-term export strategies, this "on-again, off-again" approach is very disruptive. Stability is key for growth.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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