Trump raises Section 122 tariffs to 15%, legal challenge expected by April

President Trump raised global tariffs to 15% under Section 122 of the Trade Act of 1974, effective Feb. 24, after the Supreme Court struck down his earlier framework based on IEEPA authority, analysts and legal experts say. The White House cites a 4% of GDP current account deficit in 2024 as grounds for invoking Section 122, which permits tariffs for up to 150 days to address balance-of-payments issues. Former Assistant U.S. Attorney Andrew McCarthy argues the administration conflates balance of payments with trade balance, while former Solicitor General Neal Katyal notes the DOJ previously said Section 122 had no obvious application to trade deficit concerns. Polymarket assigns a 98% probability Trump will face a lawsuit over the tariffs before April.