Trade Act of 1974

The Trade Act of 1974, particularly Section 301 and Section 122, is at the center of recent trade disputes. Following a Supreme Court ruling against President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, the administration is exploring other legal avenues, including the Trade Act of 1974, to implement tariffs. This has led to new trade investigations into manufacturing in foreign countries, specifically targeting China and the EU, with the aim of reviving tariffs. The administration has already raised tariffs to 15% on imports from all countries, using Section 122. These actions have triggered economic uncertainty and legal challenges, with 24 US states suing to stop the new tariffs. Furthermore, Singapore is contesting US claims of a trade surplus, disputing figures published by Washington under Section 301. The Act's relevance lies in its potential to be used as a basis for imposing tariffs and shaping US trade policy, despite legal challenges and international disputes.