On February 24, 2026, Trade Law Daily quoted Ashley Craig on President Trump invoking his authority under Section 122 of the Trade Act of 1974.
According to the article, there is legal uncertainty surrounding President Trump’s use of Section 122 of the Trade Act of 1974 to impose temporary tariffs following the Supreme Court’s rejection of tariff authority under IEEPA. The key issue is whether the U.S. is genuinely facing a “fundamental international payments problem,” as required by Section 122, and whether courts will defer to the president’s determination. Legal experts suggest that while the statute clearly grants tariff authority, challengers may argue that current trade deficits do not constitute a balance-of-payments crisis and that courts may ultimately need to decide how much deference to give the executive branch.
Craig weighed in, saying that while the White House could argue that the Section 122 action is addressing a different issue than the IEEPA tariffs, it may be tough to make that claim since the administration is issuing the tariffs in response to the Supreme Court ruling and “basically said” before the Court that IEEPA “is the only avenue forward.” At the same time, Craig noted that if the president invokes Section 122 “appropriately and reasonably,” it would likely “favor the presidential authority,” underscoring that the strength of any legal challenge may ultimately depend on how a court views the administration’s factual justification.
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