Trump Reimposes 10% Global Tariff After Supreme Court Setback — What Is Section 122 and Which Countries Could Be Hit?

President Donald Trump has turned to an alternative trade provision- Section 122 of the Trade Act of 1974- to introduce a fresh 10% global tariff after the US Supreme Court struck down his previous sweeping tariff measures. 

In a 6-3 ruling, the court found that Trump had overstepped his authority under the International Emergency Economic Powers Act (IEEPA) by imposing broad import duties on countries worldwide. 

Following the verdict, Trump announced that the new 10% global tariff would be implemented under Section 122, which allows the president to temporarily levy duties in cases of “large and serious” balance-of-payments deficits or other situations leading to “fundamental international payments problems.”

What Is Section 122? 

Section 122 of the Trade Act of 1974 authorises the president to impose tariffs of up to 15% to tackle what the law terms “large and serious” balance-of-payments deficits, which are often associated with trade imbalances. However, duties enacted under this provision can remain in effect for only 150 days unless Congress approves an extension. 

In the near term, this step would not significantly differ from the baseline 10% global tariff Trump had earlier implemented, or the 15% rates he negotiated through trade agreements with several countries over the past year. 

Which Countries Could Be Hit?

Reviving a policy first introduced in April 2025, China will now face an additional 10% tariff on top of existing duties. Other key US trading partners- including South Korea, Japan, and the European Union- could also be affected, given their substantial exports to the United States, particularly in sectors such as electronics and pharmaceuticals. 

Meanwhile, Mexico and Canada may see fresh negotiations over the so-called “trafficking tariffs,” previously set at 25% and 35%, respectively. China had also been subject to a longstanding 10% “fentanyl tariff” prior to the court’s ruling, which could potentially be reinstated under Section 122. 

Trump Slams ‘Deeply Disappointing’ Supreme Court Ruling

Donald Trump criticized the Supreme Court’s verdict, describing it as “deeply disappointing.” 

He said he is “ashamed of certain members of the court, absolutely ashamed for not having the courage to do what’s right for our country.” 

Trump praised justices Samuel Alito, Clarence Thomas and Brett Kavanaugh who dissented. 

“I’d like to thank and congratulate Justices Thomas, Alito and Kavanaugh for their strength and wisdom and love of our country, which is, right now, very proud of those justices,” he said. 

Trump particularly praised Kavanaugh, saying, “I would like to thank justice Kavanaugh for his, frankly, his genius and his great ability. Very proud of that appointment in actuality.”

Also Read: India-US Trade Deal ‘No Change’ After Supreme Court Verdict, Says Trump — What Happens to 18% Tariff and Zero Duties on US Exports?