What is Section 122 and how long will Trump’s new tariff last?
The purpose of Section 122 is to control America’s balance of payments deficit, that is, when imports significantly exceed exports. But there are clear limits also set in this. According to this, the maximum tariff can be 15% and can last for a maximum of 150 days, but Congress’s approval will be required to extend it further. This means this decision is not completely permanent, but can have a big impact on the global market for 5 months. Increase in this tariff may increase volatility in the US stock market, strengthen the dollar, and affect capital flows in emerging markets such as India.