Washington, D.C. — A new analysis from the Center for American Progress finds that the Trump administration’s temporary, 10 percent Section 122 tariffs—imposed shortly after the U.S. Supreme Court blocked earlier country-specific tariffs—have failed to protect workers, generate new market access for U.S. firms, or support U.S. competitiveness. Instead, they have raised costs while creating new uncertainty for businesses, manufacturers, workers, and consumers.
Despite the Trump administration justifying Section 122 tariffs based on the country’s trade imbalance, the monthly trade deficit increased 41 percent since the president announced the start of these stopgap duties. The administration is reportedly preparing its next round of imprecise tariffs on 60 countries using a different legal authority, so it is worth considering what was accomplished by imposing these specific duties.
“The Trump administration’s Section 122 tariffs failed by every measure,” said Ryan Mulholland, senior fellow at CAP and author of the analysis. “They are yet another example of the Trump administration’s economic policies raising costs while harming American businesses and hurting workers and their families.”
The analysis argues:
- Trump’s stopgap Section 122 tariffs secured no new trade agreements, expanded no meaningful market access for American exporters, and did not encourage new foreign investment or strengthen U.S. supply chains.
- The Section 122 tariffs failed to reduce the trade deficit or grow small businesses. Although the administration justified the tariffs based on the nation’s trade imbalance, the monthly trade deficit reached $77.6 billion in May, 41 percent higher than when the administration announced the Section 122 tariffs. Meanwhile, small-business bankruptcies have increased 67 percent in the first quarter of 2026 over the previous year.
- The Section 122 tariffs extended the administration’s legal battle over its trade policy. After the Supreme Court blocked the administration’s earlier tariffs, it turned to the temporary Section 122 authority, which was later ruled unlawful by the U.S. Court of International Trade in a decision that is currently stayed on appeal. The temporary nature of the tariffs gave trading partners little incentive to negotiate and left businesses facing continued legal uncertainty.
- The end of Trump’s Section 122 tariffs won’t end the uncertainty. As the Trump administration’s Section 122 tariffs expire on July 24, the administration is preparing new Section 301 tariffs on 60 countries, with preliminary rates of 10 to 12.5 percent that could stack on top of existing duties and further increase costs for businesses and consumers.
The president’s tariff agenda has disproportionately harmed American businesses and consumers. Nearly 90 percent of the economic burden of the administration’s tariffs has fallen on U.S. firms and consumers.
Read the analysis: “Trump’s Section 122 Tariffs Have Delivered Nothing for American Businesses, Workers, or Communities” by Ryan Mulholland
For more information or to speak with an expert, please contact Christian Unkenholz at [email protected].