Trump Administration Uses 1974 Trade Act Provision for Global Tariffs

The Trump administration has resorted to using a 1974 Trade Act provision to impose tariffs on most imports after losing its preferred tariff tool in a Supreme Court ruling. In February 2026, the Supreme Court voted 6-3 that the International Emergency Economic Powers Act (IEEPA) does not authorize import tariffs.

Instead of accepting this setback, the White House turned to Section 122 of the Trade Act of 1974, which allows the president to impose temporary tariffs to address balance-of-payments deficits. The initial tariff rate was set at 10%, then increased to 15% globally, with a 150-day clock that puts the expiration around late July 2026.

However, on May 7, 2026, the US Court of International Trade ruled 2-1 that these tariffs were unlawful. The court found that the tariffs exceeded the authority granted by Congress for addressing balance-of-payments issues.

Despite this ruling, the administration continues to litigate, and the tariffs remain a live issue as the July deadline approaches. Bitcoin's price dropped below $68,000 in February 2026 when tariff escalation fears peaked, and the broader market slide pushed prices toward the $65,000 to $68,000 range.