President Donald Trump’s new 15% global tariff, imposed under Section 122 of the Trade Act of 1974, is drawing legal scrutiny and economic debate. Analysts estimate the policy could cost the average U.S. household between $600 and $800. The move follows a Supreme Court decision limiting broader tariff authority under a separate emergency statute.
President Trump invoked Section 122 of the Trade Act of 1974 to address balance-of-payments deficits. The provision allows the president to impose temporary tariffs of up to 15% for 150 days unless Congress extends them. Trump initially announced a 10% global tariff on Friday following the Supreme Court’s ruling, then raised it to 15% on Saturday.
The high court, in a 6-3 decision, ruled that the International Emergency Economic Powers Act did not grant sweeping tariff authority. Chief Justice John Roberts wrote that the Constitution gives Congress alone the power to impose tariffs during peacetime, citing the major questions doctrine. Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito dissented.
President Trump responded that he does not need to return to Congress for tariff approval, arguing prior statutes already granted authority. Treasury Secretary Scott Bessent stated the administration will restructure import taxes using other legal tools, including Section 232 and Section 301 authorities, which have survived prior court challenges.
Economic projections indicate consumers may bear much of the cost. The Yale Budget Lab found that the effective average tariff rate stood at 16% before the ruling, dropped to 9.1% afterward, and rose again to 13.7% with the new Section 122 tariffs. Researchers estimate the policy could reduce average household income by $600 to $800.
Supporters argue tariffs protect American manufacturing and counter unfair trade practices that have weakened domestic industries for decades. Sen. Bernie Moreno called on Congress to codify the tariffs into law, criticizing the court’s decision and urging swift legislative action.
Critics question whether Congress will extend the temporary measure, noting its 150-day expiration. Trade analysts warn that the tariff debate will likely influence upcoming House and Senate races.
The administration maintains that restoring balanced trade and protecting American workers remain central priorities, even as legal battles and political negotiations unfold in Washington.
Sources: U.S. Supreme Court opinion; Trade Act of 1974; Yale Budget Lab analysis; statements from President Trump, Treasury Secretary Scott Bessent, and Sen. Bernie Moreno.
