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#section-1221#tariff-policy2#trade-economics1
Section 122 caps tariffs at 15 % but the administration is only using 10 % for now.
  • The statute explicitly authorizes up to a 15 % tariff.
  • The current administration has applied a 10 % rate, leaving room for future hikes.
  • This cushion gives the president flexibility to raise tariffs if political pressure mounts.
Palmer LuckeyTBPN00:13:38

Supporting quotes

Quote
00:13:38
“These ones are it's called Section 122. And under Section 122, it's very clear that the president has statutory authority.” — Palmer Luckey
Quote
00:13:53
“It has a 15 percent maximum. He only did 10%.” — Palmer Luckey

From this concept

Section 122 Tariffs: A Fixed‑Exchange‑Rate Analogy

Section 122 gives the president a 15 % tariff ceiling, currently set at 10 %. Economists argue tariffs act like a fixed exchange rate, distorting trade flows and prompting predictable pause cycles.

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