US Tariff Authority
In the wake of the U.S. Supreme Court’s holding that the International Emergency Economic Powers Act of 1977 does not grant the U.S. President authority to impose tariffs, the U.S. federal government unsurprisingly has maintained the U.S President’s commitment to the use of tariffs as tools for U.S. economic security and a domestic industrial revival in the United States(the Case by Case podcast about Learning Resources Inc. v. Trump is located here).
Immediately after the U.S. Supreme Court announced its decision in Learning Resources Inc., the U.S. President imposed an across-the-board tariff (with some limited exceptions) under Section 122 of the Trade Act of 1974. In addition, as discussed in a prior post, on 11 March 2026, the U.S. Trade Representative (“Trade Representative”) initiated investigations pursuant to Section 301 of the Trade Act of 1974 into the acts, policies, and practices of the economies of several U.S. trading partners related to structural excess capacity and production in certain manufacturing sectors in those trading partners, and stated the investigations would be completed prior to the 150-day duration of the Section 122 tariffs (the post is located here).
In this post, we briefly summarize and compare certain statutes that grant the power to impose tariffs to the U.S. President. These statutes address different issues, contain different requirements for the imposition of a tariff, and allow for different duration and rate of the tariff imposed under the statute. The variance across these statutes and the authority to impose the tariff is important to understand because parties engaging in transactions involving trade with the United States will be able to better assess and allocate risk and, and thus better predict and distribute costs amongst the parties to a trade.
The U.S. Constitution grants the power to impose tariffs to the U.S. Congress. Article I, Section 8 of the U.S. Constitution states Congress has the power to “regulate Commerce with foreign Nations” and the power to “lay and collect Taxes, Duties, Imposts and Excises.” U.S. Const. art. I, § 8. In the exercise of its constitutional powers, to include its legislative power, Congress, in turn, has enacted laws granting certain tariff authority to the U.S. President. Five such statutes are (1) Section 232 of the Trade Expansion Act of 1962; (2) Section 122 of the Trade Act of 1974; (3) Section 201 of the Trade Act of 1974; (4) Section 301 of the Trade Act of 1974; and (5) Section 338 of the Tariff Act of 1930. At the of the description of each statute, there is a chart comparing the same.
Section 232 authorizes the President to “adjust the imports” of articles that the Secretary of Commerce finds are “being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.” 19 U.S.C. § 1862(c)(1)(A).
The Secretary must conduct “an appropriate investigation to determine the effects on the national security of imports of the [subject] article” as the result of a petition by an “interested party,” or a request by the head of any U.S. department or agency, or on the Secretary’s own motion. Id. § 1862(b)(1)(A). The Secretary must consult on “methodological and policy questions” with the Secretary of Defense and also seek information from other officers of the United States, hold public hearings, and afford interested parties an opportunity to be heard, as appropriate. Id. § 1862(b)(2)(A). Within 270 days of initiating the investigation, the Secretary must submit a report to the U.S. President that contains “the findings of such investigation” and “recommendations [] for action or inaction.” Id. § 1862(b)(3)(A).
“Within 90 days after receiving a report [] in which the Secretary finds that an article is being imported [] as to threaten to impair the national security,” the U.S. President shall determine “whether the President concurs with the finding” and, if so, “determine the nature and duration of the action” to ensure the imports “will not threaten to impair the national security.” Id. § 1862(c)(1)(A).
There is no limit on the duration or rate of a tariff imposed under Section 232.
Section 122 directs the U.S. President to take measures that may include a temporary import surcharge (tariff) when necessary to address “large and serious United States balance-of-payments deficits” or certain other situations that present “fundamental international payments problems.” 19 U.S.C. § 2132(a).
A tariff imposed under Section 122 shall not exceed a period of “150 days (unless such period is extended by Act of Congress)” or a rate of fifteen (15) percent. Id. § 2132(a). In addition, a tariff “shall be applied consistently with the principle of nondiscriminatory treatment,” id. § 2132(d)(1), and “shall be of broad and uniform application with respect to product coverage except where the President determines, consistently with the purposes of this section, that certain articles should not be subject to import restricting actions because of the needs of the United States economy.” Id. § 2132(e).
Section 201 authorizes the U.S. President to impose tariffs or take certain other actions if the U.S. International Trade Commission (“Commission”) finds “an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article.” 19 U.S.C. § 2251(a).
The Secretary must conduct “an investigation” as the result of a petition by a party representing a domestic industry, a request by the U.S. President or the U.S. Trade Representative, a resolution of the U.S. House of Representatives Ways and Means Committee or Senate Finance Committee, or on the Commission’s own motion. Id. § 2252(b)(1)(A). As part of its investigation, the Commission must “hold public hearings at which the Commission shall afford interested parties and consumers an opportunity to be present, to present evidence, to comment on the adjustment plan, if any [], to respond to the presentations of other parties and consumers, and otherwise to be heard.” Id. § 2252(b)(3). The Commission must submit a report including its findings and recommendations to the U.S. President within 180 days, which can be extended to 240 days, of the start of the investigation. Id. § 2252(f).
“[W]ithin 60 days [] after receiving a report from the Commission containing an affirmative determination,” the U.S. President must take action. Id. § 2253(a)(4). A tariff imposed under Section 201 may not “increase a rate of duty to (or impose a rate) which is more than 50 percent above the rate (if any) existing at the time the action is taken.” Id. § 2253(e)(3). The duration of a tariff imposed under Section 201 that lasts more than one (1) year must be “phased down at regular intervals,” id. § 2253(e)(5), and shall not exceed four (4) years unless the Commission makes certain findings in a follow-on proceeding, in which case the President may extend the actions up to an additional four (4) years. Id. §§ 2253(e)(1), 2254(c).
Section 301 allows the Trade Representative to impose tariffs in response to an action by foreign countries that violates U.S. rights under international trade agreements or that “is unjustifiable and burdens or restricts United States commerce.” 19 U.S.C. § 2411(a).
The Trade Representative is authorized but not required to conduct an investigation based on a petition filed by “any interested person,” id. § 2412(a), or the Trade Representative may also self-initiate an investigation. Id. § 2412(b)(1)(A). Generally, upon initiation of an investigation, the Trade Representative must “request consultations with the foreign country regarding the issues involved in such investigation,” id. § 2413(a)(1), and “provide an opportunity [] for the presentation of views by interested persons, including a public hearing if requested by any interested person.” Id. § 2413(b)(1). The deadline to complete the investigation varies according to the basis and nature of the investigation. Id. § 2414(a).
Section 301 divides the Trade Representative’s authority into “mandatory action” and “discretionary action.” Id. § 2411(a), (b). Mandatory action is generally required when the Trade Representative determines that “(A) the rights of the United States under any trade agreement are being denied; or (B) an act, policy, or practice of a foreign country[] (i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement, or (ii) is unjustifiable and burdens or restricts United States commerce.” Id. § 2411(a)(1). Discretionary action is authorized when the Trade Representative determines that “(1) an act, policy, or practice of a foreign country is unreasonable or discriminatory and burdens or restricts United States commerce, and (2) action by the United States is appropriate.” Id. § 2411(b).
Upon making an affirmative determination, the Trade Representative is authorized, under the direction of the U.S. President, to impose duties or other import restrictions, withdraw or suspend trade agreement concessions, or enter into an agreement with a foreign government to stop the offending conduct or compensate the United States. Id. § 2411(c). A tariff imposed under Section 301 terminates automatically after four years unless any petitioner or representative of a domestic industry benefiting from the action requests continuation, in which case the Trade Representative may extend the action. Id. § 2417(c). There is no limit on the rate of a tariff imposed under Section 301.
Section 338 directs the U.S. President to impose tariffs “whenever he shall find as a fact” that a foreign country either (1) imposes on U.S. products “any unreasonable charge, exaction, regulation, or limitation which is not equally enforced upon the like articles of every foreign country” or (2) disadvantages and discriminates against U.S. commerce “by or in respect to any customs, tonnage, or port duty, fee, charge, exaction, classification, regulation, condition, restriction, or prohibition”—provided he finds that doing so will serve the public interest. 19 U.S.C. § 1338(a).
The rate of a tariff imposed under Section 338 will be an offset not to exceed fifty (50) percent. Id. § 1338(d). There is no limit on the duration of a tariff imposed under Section 338.
Notably, the U.S. President has never exercised their authority to impose a tariff under Section 338.
| Section 232 of the Trade Expansion Act of 1962 | Section 122 of the Trade Act of 1974 | Section 201 of the Trade Act of 1974 | Section 301 of the Trade Act of 1974 | Section 338 of the Tariff Act of 1938 | |
| U.S. Code | 19 U.S.C. § 1862 | 19 U.S.C. § 2132 | 19 U.S.C. §§ 2251–2255 | 19 U.S.C. §§ 2411–2420 | 19 U.S.C. § 1338 |
| Basis | Articles imported in quantities or circumstances that threaten national security | International payments problems including balance-of-payments deficits | Injury to domestic industry from import surges | Trade agreement violations; certain other practices | Burdens or discrimination against U.S. commerce |
| Agency | Secretary of Commerce | None | U.S. International Trade Commission | U.S. Trade Representative | None |
| Investigation Required | Yes | No | Yes | Yes | No |
| Duration | None | 150 days | 4 years (may be extended to 8 years) | 4 years (may be extended indefinitely) | None |
| Rate | None | 15% (uniformity requirement) | 50% (phasedown requirement) | None | Offsetting rates up to 50% |