GEOPOLITICS | U.S. Imposes Temporary Tariffs Citing 1974 Trade Act

On February 22, according to Jin10, the U.S. has imposed new temporary tariffs, invoking Section 122 of the 1974 Trade Act, a provision rarely used in recent times. The stated aim is to fundamentally address the U.S.'s international balance of payments issues, particularly the significant trade deficit. However, the application of Section 122 requires a fundamental problem in the overall balance of payments, not just a trade deficit in goods. This broader assessment includes capital flows and trade in goods and services. Given this context, the new tariffs may face legal challenges, similar to previous instances. Cui Fan, an expert familiar with international trade negotiations, noted that if the U.S. halts these measures or reduces the tariff rates, China might evaluate and adjust its response accordingly. However, if the U.S. continues to impose new tariffs using other legal tools, China will consider whether to take corresponding actions.