What changed The 10% Section 122 global import surcharge — imposed after the Supreme Court struck down the IEEPA tariffs — hits its hard statutory sunset. The Section 122 tariff expires by statute at 12:01 a.m. EDT on July 24, 2026, 150 days after it took effect on February 24, the maximum duration Congress allows without an extension. The President cannot extend it unilaterally, and no extension bill has advanced. USTR's proposed replacement is running on a parallel track: for economies that impose a forced labor import prohibition, have committed to one through an Agreement on Reciprocal Trade, or have a partial regime, the Trade Representative proposes 10% as the rate of additional duties; for all other economies, the Trade Representative proposes 12.5%. As of today (July 20), that Section 301 action is at its completion deadline but not yet finalized — no final action or effective date has been published.
Who's affected Direct importers of non-USMCA, non-Section-232 goods from most trading partners. The proposed 12.5% group includes China, India, Vietnam, Thailand, Turkey, South Korea and most others; the 10% group includes Canada, Ecuador, the EU, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and the UK. Insulated parties: EU goods moved to the trade deal's 15% all-inclusive ceiling on July 1, so the sunset changes nothing for EU origin; USMCA-qualifying goods from Mexico and Canada enter at 0% and never carried the Section 122 layer; and Section 232 articles — steel, aluminum, copper at 50%, autos at 25% — are unaffected because 122 never stacked on 232 content and 232 has no sunset.
Cost impact Section 122 currently adds 10 points to the duty stack on covered goods. If Section 301 lands as proposed, most affected origins shift from 10% to 12.5% — a net +2.5-point increase; a subset move to 10% (roughly flat). If USTR finalizes the proposed action, most affected imports shift to 12.5% on 46 countries; if the decision slips, rates temporarily revert to MFN plus existing Section 232/301 surcharges until a replacement lands. Note stacking risk: the separate proposed 25% Brazil Section 301 tariff appears intended to stack on top of the 12.5% forced labor rate, for a potential combined 37.5% on Brazilian imports.
What to do 1. Pull your entry data by HTS and origin for the 60 investigated economies; flag lines that fall outside Annex A exclusions. 2. Re-quote landed cost on affected SKUs under two cases: clean 122 lapse (MFN + existing 232/301) and Section 301 replacement at your origin's 10% or 12.5% rate. 3. Talk to your broker this week about entry timing around July 24 — goods rushed to enter before July 24 lock in the 10%, while goods timed after the lapse can land in any gap.
4. Check whether USMCA-qualifying Canada/Mexico goods keep their exemption under 301 — that exemption may not carry forward; watch the final rule carefully.
5. Preserve records on Section 122 duties paid Feb 24–Jul 24: the Federal Circuit appeal is allowing CBP to keep collecting while the case runs, and if courts void Section 122, duties paid in that window become refund candidates.
6. Watch for the final Section 301 Federal Register notice and its effective date; confirm any in-transit grace provision before moving freight.
Effective dates - Section 122 10% surcharge expires → 12:01 a.m. EDT, July 24, 2026 - USTR Section 301 replacement completion deadline → July 20, 2026 (final action/effective date not yet published as of this writing) - Section 301 effective date → TBD — the effective date and whether any grace period applies to goods in transit remain open questions.
Sources - USTR press release, proposed Section 301 forced-labor action (June 2, 2026): https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-makes-findings-and-proposes-action-60-section-301-investigations-relating-failures-take-action - Federal Register, Section 301 Determinations & Request for Comments (June 5, 2026): https://www.federalregister.gov/documents/2026/06/05/2026-11296/notice-of-determinations-and-request-for-comments-concerning-actions-in-section-301-investigations - USTR Federal Register Notice PDF (Section 301 forced labor, proposed action): https://ustr.gov/sites/default/files/files/Press/Releases/2026/FRN%20-%20Section%20301%20Forced%20Labor%20Import%20Ban%20Actionabilty%20and%20Proposed%20Action%206-2-26%20FINAL.pdf - CBP CSMS #67844987, Imposing Temporary Section 122 Duties: https://content.govdelivery.com/accounts/USDHSCBP/bulletins/40b3b7b - Federal Register, Section 232 aluminum/steel/copper proclamation (June 4, 2026): https://www.federalregister.gov/documents/2026/06/04/2026-11314/further-adjusting-the-tariff-regimes-for-imports-of-aluminum-steel-and-copper-into-the-united-states
Note: I could not locate any published final Section 301 action or effective-date notice dated July 17–20, 2026. The alert reflects an imminent scheduled expiration/rate change; the replacement's final terms should be confirmed against the Federal Register once published.
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This alert is informational only and is not legal, customs, or trade-compliance advice. Verify current rates and rules against the linked primary sources or with a licensed customs broker before acting.