A legal analysis reveals the Trump Administration's plan to impose new tariffs using Section 122 of the Trade Act of 1974 is legally flawed. Bryan Riley argues that while the Supreme Court may strike down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), Section 122 cannot be used as an alternative. Riley states Section 122 authorizes temporary import surcharges only during fundamental international payments problems, a condition absent in the modern U.S. economy.

The provision was created in 1973 during the collapse of the Bretton Woods fixed exchange rate system but became obsolete after the U.S. adopted floating exchange rates in 1973. Riley contends the U.S. has not faced such a payments crisis since then, rendering Section 122 inapplicable.