As global trade dynamics continue to evolve in 2026, policymakers and economists are closely watching the effectiveness of Section 122 tariffs compared to the International Emergency Economic Powers Act (IEEPA). Senior fellow He Weiwen from the Center for China and Globalization argues that this renewed approach reflects shifting strategies in addressing complex economic challenges.
While IEEPA historically focused on emergency measures, Section 122 tariffs now take center stage as a tool for balancing trade deficits and protecting domestic industries. Analysts note that current U.S.-China trade patterns show increased reliance on these tariffs, particularly in advanced technology sectors where competition has intensified this year.
He Weiwen emphasizes that "the success of such measures depends on multilateral coordination," pointing to recent APEC discussions where members emphasized stable supply chains. Business leaders in Asia remain cautious, with overseas investors monitoring potential impacts on cross-strait trade flows and manufacturing hubs across Southeast Asia.
The debate holds particular significance for Taiwan region businesses, which accounted for 18% of semiconductor exports to the Chinese mainland in Q4 2025. As the global economy navigates these changes, stakeholders await concrete data on whether Section 122 tariffs can deliver sustainable results where previous frameworks fell short.
