February 22, 2026
Tariffs? Or just vibes
U.S. Cannot Legally Impose Tariffs Using Section 122 of the Trade Act of 1974
Law says no tariffs; commenters say loopholes, chaos, and even “missiles”
TLDR: Expert says Section 122 can’t legally revive broad tariffs—it’s for old-school currency crises, not today. Commenters aren’t buying it: many predict loopholes or brute force, with some fearing saber-rattling if courts curb tariff powers, making this a big test of checks vs. real-world power.
A policy wonk just threw cold water on a rumored tariff comeback: Section 122 of the 1974 Trade Act. In plain English, it only lets a president slap a short-term import fee (up to 15% for 150 days) during a true international payments crisis—think gold-standard drama, not today’s floating-dollar world. If IEEPA tariffs get axed by the Supreme Court, some say Trump might pivot to other laws—but this author argues Section 122 isn’t it.
The comments? Absolute chaos. One user zeroed in on the undefined phrase at the heart of the law—“fundamental international payments problems”—and called it the giant loophole truck. Another said the quiet part loud: with SCOTUS “nerfing” the tariff cheat code, the only lever left is saber-rattling—“missiles and war ships.” A third went full cynic: presidents ignore rules, loopholes always appear, just vote in someone who cares about limits.
There were jokes, too. People memed the 1971 Nixon surcharge as “Tariff Speedrun: Fort Knox Edition,” and dubbed Section 122 a relic from the Bretton Woods era. A few legal eagles tried to explain that floating exchange rates make Section 122 a museum piece, but the crowd’s vibe leaned fatalistic: laws are for textbooks, not power plays. Meanwhile, governance nerds sighed and linked Trade Act of 1974 primers. Internet court: divided, spicy, and very, very online.
Key Points
- •Section 122 allows temporary import surcharges up to 15% or quotas for up to 150 days only during fundamental international payments problems tied to specific purposes.
- •The article argues the U.S. has not faced such payments problems since adopting floating exchange rates in March 1973.
- •Section 122 was introduced on October 3, 1973 to provide statutory guidelines for import surcharges following earlier monetary crises.
- •President Nixon ended the gold standard on August 15, 1971 and imposed a temporary 10% import surcharge, later dropped after the Smithsonian Agreement.
- •While Sections 301 and 232 have been used to impose tariffs, the article contends Section 122 is not a valid alternative to IEEPA for new tariffs.