From IEEPA to Section 122: a new phase in U.S. trade policy explained

Following the ruling of the U.S. Supreme Court on 20 February, Trump announced that the so‑called International Emergency Economic Powers Act (IEEPA) import duties would be repealed as of 24 February 2026. Schippers explains: “The IEEPA tariffs were introduced under a specific emergency statute that allows the U.S. president to impose duties when U.S. national security is at stake. The alleged influx of illegal drugs from Canada, Mexico and China was, according to Trump, a public health crisis, while the trade deficit would simply cause damage to the U.S. manufacturing industry. This prompted Trump, during the Rose Garden conference on 2 April last year, to announce the introduction of a 10% base tariff and higher country‑specific duties.”

“At the same time as the repeal of the IEEPA import duties,” Schippers continues, “new import duties of 10% have applied since 24 February. The new duties are based on Section 122 of the Trade Act of 1974. Under Section 122, the president has the authority to introduce temporary trade measures to protect the balance of payments of the United States for a maximum period of 150 days.”

Differences between IEEPA and Section 122 import duties

The repealed and newly introduced duties aren't the same, Schippers explains: “Although the base rate is again 10%, Section 122 does not provide for country‑specific import duties.” He continues: “In addition, both IEEPA and Section 122 include certain exemptions, which are largely similar, but there are also differences.” As an example, he points to tomatoes, oranges and orange juice, which are now exempt but previously were not, and to writing or exercise books and children’s picture, drawing or colouring books, for which the reverse applies. "It is not yet entirely clear how the Section 122 import duties relate to trade agreements that Trump has concluded with various countries over the past year, and to other additional import duties based on different legal grounds, such as the 50% import duties on steel, aluminium and copper, which are based on Section 232 of the Trade Expansion Act of 1962," says Schippers.

Section 122 import duties: 10 or 15%?

In the weekend before the new import duties were introduced, Trump threatened to impose additional import duties of 15%. Ultimately, an additional import duty of 10% was introduced. Asked whether the duty could increase further, Schippers notes: “Under Section 122, a maximum rate of 15% applies, so the rate could indeed increase further. However, the import duty cannot remain in force for longer than 150 days. After this period, approval from Congress is required to extend its validity.” Schippers adds: “The uncertainty as to whether the import duties will be extended must also be viewed in light of the crumbling support among Republicans for Trump’s trade policy and the upcoming midterm elections for Congress in the autumn. Against that background, Trump,” Schippers concludes, “will be eagerly looking for other legal bases to introduce additional import duties.”

The framework agreement between the EU and the US

Last summer, the European Union and the United States concluded a framework agreement. Part of that agreement was that a maximum import duty of 15% would be imposed on most European Union products imported into the United States, while the European Union would reduce import duties on U.S. industrial, agricultural and fisheries products to 0%. To that end, the European Commission submitted a proposal at the end of August 2025. Schippers notes: “In response to the latest developments, the European Parliament has postponed the vote on the proposal. Like the other EU institutions, the Parliament first wants to understand what the developments mean for the arrangements made under the framework agreement.”