In the wake of the Supreme Court's 6-3 decision to deny the president's executive order enacting broad tariffs on global trading partners, a proclamation was signed on Friday to impose a 10% surcharge on imports entering the United States, effective on Tuesday.
The administration has cited Section 122 of the Trade Act of 1974 as giving it the authority to take action through surcharges and other special import restrictions.
The proclamation indicates the need for the tariffs is because the United States’ goods trade deficit has grown by more than 40% in the past five years, reaching $1.2 trillion in 2024. In 2025, the United States goods trade deficit remained at approximately $1.2 trillion, according to the proclamation.
While the goods deficit widened to roughly $1.2 trillion, the U.S. services surplus increased—exports were higher than imports in services—but it wasn’t large enough to offset the goods deficit, resulting in an overall trade deficit.
Get your subscription to Control Design’s daily newsletter.
According to the U.S. Bureau of Economic Analysis, the 2025 goods and services deficit was $901.5 billion, down $2.1 billion from $903.5 billion in 2024. Exports were $3,432.3 billion, up $199.8 billion from 2024. Imports were $4,333.8 billion, up $197.8 billion from 2024.
Section 122 authorizes the president to impose, for a period not exceeding 150 days unless extended by an act of the Congress, a temporary import surcharge up to 15% ad valorem and other temporary limitations on articles imported into the United States in situations of fundamental international payments problems, according to the proclamation.
