The U.S. Balance of Payments Gamble: All About the Section 122 Strategy

What happens when one legal path to tariffs is closed—and another quickly opens?In this episode, AFPC-USA, in partnership with the Hinrich Foundation, sits down with Dawn Shackleford, president of Looking Glass Trade, LLC, to unpack how the Trump administration pivoted to Section 122 of the Trade Act of 1974 after the U.S. Supreme Court blocked its use of IEEPA to impose tariffs. Shackleford explains what Section 122 allows, why the administration settled on a 10% tariff, and what would be required to justify going higher. She also breaks down what a genuine balance-of-payments crisis actually looks like—and why international institutions like the IMF matter in determining whether trade restrictions are warranted. Hosted by veteran journalist Roseanne Gerin, this conversation offers a clear-eyed look at the legal, economic, and global stakes behind America’s evolving trade strategy.This podcast episode was produced in partnership with the Hinrich Foundation. AFPC-USA is solely responsible for the content of this episode.