U.S. Cannot Legally Impose Tariffs Using Section 122 of the Trade Act of 1974
3 days ago
- #Economic History
- #Legal Analysis
- #Trade Policy
- President Trump cannot legally impose tariffs using Section 122 of the Trade Act of 1974.
- Section 122 allows tariffs only in cases of fundamental international payments problems, which the U.S. does not currently face.
- The provision was designed for fixed exchange rate regimes, obsolete since the U.S. adopted floating exchange rates in 1973.
- Historical context shows Section 122 was a response to the 1971 gold standard crisis, not applicable today.
- Multiple conditions must be met for Section 122 tariffs, none of which are present in the current economic environment.