US Section 122 Tariffs: A Guide
- Arne Mielken
- 2 days ago
- 6 min read
🔓 Navigating the 10% global import surcharge? Get the latest on the Section 122 tariff status, expiration, and legal challenges here.
Understanding the Section 122 Tariff LandscapeSummary: As of 15 June 2026, a 10% global import surcharge under Section 122 of the Trade Act of 1974 remains in effect. The duty, originally implemented on 24 February 2026, applies to most imports. Despite legal challenges, the U.S. Court of Appeals has stayed an injunction, meaning CBP continues to collect these duties. |
Transition from IEEPA to Section 122 Tariffs
Following the Supreme Court’s invalidation of tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), the administration moved to replace them with a new framework under Section 122 of the Trade Act of 1974. These Section 122 tariffs officially took effect on February 24, 2026, and are scheduled to remain in place for a 150-day period, expiring on July 24, 2026.
What happened with Section 122 tariffs?
Based on CSMS # 67844987, the U.S. government has implemented a temporary 10% ad valorem duty on most imported goods, effective from February 24, 2026, through July 24, 2026. This surcharge is mandated by the 20 February 2026, Presidential Proclamation under Section 122 of the Trade Act of 1974 called “Imposing a Temporary Import Surcharge”.
Key Details
Rate: 10% additional ad valorem duty.
Classification: Generally applied under HTSUS heading 9903.03.01.
What are the critical dates for compliance?
The tariff program was designed as a temporary measure with a defined lifecycle. Below are the key milestones:
Start Date: February 24, 2026 (12:01 a.m. EST).
Expiration Date: Scheduled for July 24, 2026 (12:01 a.m. EDT).
In-Transit Relief: Applicable to goods on vessels prior to February 24, 2026, provided they were entered for consumption by February 28, 2026.
Key Exemptions
Several categories of goods are exempt from this 10% surcharge, including:
Goods in Transit: Goods loaded and in transit prior to February 24, 2026, provided they are entered for consumption by February 28, 2026.
Specific Product Categories: Including certain civil aircraft parts, specific religious and agricultural products, and various industrial materials (as defined by specific HTSUS subheadings 9903.03.02–9903.03.06).
Free Trade Agreements: Certain goods from Canada (USMCA), Mexico (USMCA), and specific textile/apparel goods from DR-CAFTA nations.
Humanitarian/Informational: Donations intended to relieve human suffering and informational materials (e.g., books, films, digital media).
Personal Use: Goods included in accompanied baggage for personal use.
Operational Requirements
Chapter 98 Provisions: Generally exempt, though specific subheadings for repairs, alterations, or assembly abroad are subject to the duty based on the value of that processing/assembly.
Foreign Trade Zones (FTZ): Most goods admitted into an FTZ on or after February 24 must be admitted as "privileged foreign status."
Drawback: Available for these additional duties.
Entry Summary Reporting: Filers must follow a specific hierarchy when reporting HTS codes on entry summaries. If multiple trade remedies apply, the order is:
Section 301
Section 122 (New)
Section 232
Section 201 (duties, then quota)
De Minimis Treatment Remains Suspended
CBP has confirmed that the suspension of de minimis duty-free treatment (19 U.S.C. § 1321(a)(2)(C)) continues under the new Section 122 regime. Goods remain ineligible for de minimis entry unless they fall under specific statutory exceptions (50 U.S.C. § 1702(b)), see above. This policy ensures continuity with the previous administration’s approach to de minimis exemptions.
Recordkeeping
Filers must maintain all documentation substantiating eligibility for exemptions.
What is the current status of the Section 122 tariffs?
The Section 122 tariff, initiated by President Trump on 20 February 2026, mandates a 10% surcharge on global imports. While a Court of International Trade ruling on 7 May 2026 had declared Proclamation No. 11012 “invalid as contrary to law" , the Department of Justice successfully obtained a stay on that injunction.
Moreover, while the CIT ordered the cessation of duty collection for the specific plaintiffs involved in that lawsuit, it declined to issue a universal injunction.
Despite the government's subsequent request for a stay, the CIT denied it, prompting the government to appeal to the CAFC.
Federal Circuit Pauses Injunction on Section 122 Tariffs
On June 11, 2026, the U.S. Court of Appeals for the Federal Circuit (CAFC) granted the federal government's motion to stay a lower court's injunction. This ruling allows the government to continue collecting the 10% Section 122 import surcharges from the plaintiffs who had previously won relief: the State of Washington, Burlap and Barrel, Inc., and Basic Fun, Inc.
The CAFC’s Four-Factor Analysis
To determine whether a stay was appropriate, the CAFC applied the traditional four-factor test. The court ultimately concluded that three of the four factors favored the government, while the fourth was neutral:
Factor | Finding |
1. Likelihood of Success on Merits | Favors Government. The court signaled skepticism toward the CIT’s narrow interpretation of "balance-of-payments deficits," citing legislative history that suggests a broader scope. It also rejected nondelegation concerns, noting that Section 122 contains sufficient legislative guardrails. |
2. Irreparable Injury to Government | Favors Government. The court agreed that allowing the injunction to stand could lead to a wave of "follow-on" lawsuits, undermine national trade policy, and create administrative difficulties for CBP in processing potential refunds. |
3. Substantial Injury to Importers | Favors Government. The court reasoned that the plaintiffs would not be substantially injured by a stay, as any wrongfully collected duties could be recovered later—with interest—should the tariffs eventually be ruled unlawful. |
4. Public Interest | Neutral. The court treated this as a wash, noting that the public interest is inextricably tied to the ultimate legal merits of the tariff program itself. |
What This Means for Importers
The CAFC's decision effectively pauses the relief previously granted to the named plaintiffs, meaning the 10% surcharge will continue to be collected from all importers—including those who were party to the original CIT ruling—throughout the duration of the appeals process.
As of now, the Section 122 duties are scheduled to expire on July 24, 2026. Importers are encouraged to continue monitoring the situation, as the legal landscape remains fluid and subject to further appellate review.
How Customs Manager Ltd Can Support You
Expert Consultancy & Advice: Discuss the matters in this blog for your context. Schedule a free 1-hour consultancy call. Book at www.customsmanager.org → Book Expert Call.
Specialized Training: Get training on Section 122 Tariffs with live, on-demand (pre-recorded), and in-house options for you and your team. Visit www.customsmanager.org -> Events to see what’s coming up.
Actionable Trade Intelligence: Get weekly EU, UK, and U.S. customs, export controls & sanctions regulatory intelligence, summarized, prioritized, and explained in a single expert bulletin, saving you time and keeping you compliant. Visit our dedicated Knowledge Hub at www.customsmanager.info to get a free 30-day trial with no obligations. No Credit Card, no sign-up, just actionable trade intelligence.
U.S. & UK Customs Clearance: We act as your Customs Broker in the U.S. and the UK, using our expertise and knowledge to file CBP Entry Summaries or UK CDS customs declarations.
Free Information and Updates
Sign Up for Our Weekly Highlights Newsletter: https://sendfox.com/customsmanager
Weekly Customs & Global Trade Expert Videos (YouTube): Ask the Customs Manager for video messages by Arne Mielken answering your questions, insightful interviews, bite-size info videos, and more. Subscribe for free here: https://www.youtube.com/c/CustomsManagerLtd
Visit our Knowledge Hub Platform www.customsmanager.info
Never miss a significant legal change on our Knowledge Hub Platform www.customsmanager.info – a website dedicated to customs & trade intelligence, providing vital thought leadership and development services to empower them to trade effectively, efficiently, and, of course, compliantly, across borders.
About Customs Manager Ltd.
We aim to empower people with import, export, and transport responsibilities with helpful advice, insightful training, relevant trade intelligence, and EU, UK, and U.S. direct and indirect customs clearance services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently, and, of course, compliantly wherever you want to go.
Contact
Main Website: www.customsmanager.org
Our Trade Intelligence Knowledge Hub Platform: www.customsmanager.info
E-Mail: info@customsmanager.org
Author: Arne Mielken | Managing Director & Global Trade Expert | Updated: June 15, 2026
Disclaimer: This blog is for educational and informational purposes only and does not constitute legal or professional advice. Please consult qualified professionals for specific compliance obligations. Book a free call with our experts at www.customsmanager.org -> Book Expert Call.
Hashtags: #Section122 #TradeAct1974 #CustomsCompliance #ImportSurcharge #GlobalTrade #TradeLaw #CustomsBroker #SupplyChainManagement #InternationalTrade #CustomsManager
Comments