Trade Act of 1974
Trade Act of 1974 is the US statute, signed January 3, 1975, that authorizes Section 201 safeguards, Section 301 retaliation, Section 122 balance-of-payments duties, the GSP program and fast-track trade negotiation.
What it requires
Section 301 lets USTR impose duties on countries whose practices burden US commerce, after an investigation and public comment. Section 201 allows safeguards for up to eight years after an ITC injury finding. Section 122 allows import surcharges of up to 15 percent for 150 days. After the Supreme Court ended IEEPA tariffs on February 20, 2026, a 150-day Section 122 surcharge expired in July 2026 and was replaced on July 24 by Section 301 forced labor tariffs of 10 or 12.5 percent on about 60 economies.
Why it matters
The Trade Act of 1974 is now the main legal basis for broad US tariffs, so it drives landed cost for most imported goods. China-origin products have carried Section 301 duties of 7.5 to 100 percent since 2018, and since July 24, 2026 goods from about 60 economies pay a new Section 301 rate on top of the MFN duty. An e-commerce brand importing apparel from Vietnam, for example, must add the 12.5 percent Section 301 duty to its cost model. Operators should track Federal Register notices because Section 301 actions can be modified quickly.
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Not legal advice.