Signal US imposes a temporary Section 122 import surcharge after the IEEPA ruling

Summary

After the IEEPA-based tariffs were found unlawful, the United States imposed a temporary global import surcharge under Section 122 of the Trade Act of 1974. Section 122 allows the president, when there are serious balance-of-payments problems, to levy a surcharge of up to 15 percent for at most 150 days without congressional extension. Sections 301 and 232, based on unfair trade practices and national security, can by contrast serve as longer-lasting instruments of pressure, which clouds the future policy path. The report observes that refunds of IEEPA duties and the temporary nature of the Section 122 surcharge make second-half revenue projections uncertain. Trade policy uncertainty can therefore spill into fiscal and financial market volatility, not only into trade flows.