Last verified: 2026-07-20.

The Section 122 import surcharge is a temporary, across-the-board U.S. import duty imposed under Section 122 of the Trade Act of 1974 (codified at 19 U.S.C. § 2132). As of this writing, the operative rate is 10% ad valorem on most imports, set by Proclamation 11012 and implemented by CBP under CSMS #67844987. The proclamation imposes, for a period of 150 days, a temporary import surcharge of 10 percent ad valorem on articles imported into the United States, effective February 24, 2026. The surcharge is scheduled to expire by operation of law at 12:01 a.m. EDT on July 24, 2026 — 150 days after it took effect — unless Congress extends it. Status is volatile: a court has ruled it unlawful, that ruling is stayed pending appeal, and the statutory sunset is only days away as of this verification date. Check CBP CSMS messages and the Federal Register for any update before relying on the rate.

What Section 122 is and the current rate

Section 122 provides that whenever fundamental international payments problems require special import measures to restrict imports — to deal with large and serious U.S. balance-of-payments deficits, to prevent an imminent and significant depreciation of the dollar, or to cooperate with other countries in correcting an international balance-of-payments disequilibrium — the President shall proclaim, for a period not exceeding 150 days (unless extended by Act of Congress), a temporary import surcharge not to exceed 15 percent ad valorem.

A note on the rate — 10% vs. 15%. The 15% figure is the statutory ceiling, not the rate importers pay. On February 21, 2026, President Trump announced an intention to raise the rate to 15%, the statutory maximum permitted under Section 122; that change was never enacted — no proclamation was issued to implement it, and the operative rate remains 10% ad valorem, as set out in the proclamation and CBP's implementing guidance. Some trade press reports the current rate as 15%, but the primary sources (the Federal Register proclamation, the White House fact sheet, and CBP's CSMS) all specify 10%. The administration publicly described the new surcharge as 10 to 15 percent, even though the underlying Federal Register notice specified a 10 percent base rate. What this means for you: file and pay on the 10% base rate unless CBP issues new guidance.

This is the first time the authority has ever been used. Later on February 20, 2026, President Trump announced he was imposing a temporary 10% surcharge on imports using Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132). This is the first time a President has used Section 122. It was invoked as a replacement after the Supreme Court struck down the administration's IEEPA-based tariffs. On February 20, 2026, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs.

What it applies to — scope, HTS, and channels

The surcharge is a flat, country-neutral add-on. The Section 122 tariff applies a flat 10% ad valorem surcharge on all articles imported into the United States from all countries, entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. EST on February 24, 2026; unlike the IEEPA tariffs it replaces, the Section 122 tariff is uniform. There are no country-specific rates. It is generally applied under HTSUS heading 9903.03.01.

Key exceptions (from Annexes I and II of the proclamation and CBP guidance):

- USMCA-qualifying goods. Goods that qualify for duty-free treatment under USMCA are exempt; goods from Canada and Mexico that do not qualify for USMCA treatment are subject to the 10% surcharge. The exemption must be actively claimed on each entry. - Section 232 goods. The tariff shall not apply in addition to Section 232 tariffs; if Section 232 applies to part of an import, the tariff applies only to the non-Section 232 portion.

- CAFTA-DR textiles/apparel, certain civil aircraft parts, and enumerated critical minerals, energy, and pharmaceutical products under specific HTSUS subheadings 9903.03.02–9903.03.06.

- Goods in transit. An exception is provided for goods loaded and in transit on the final mode of transit before 12:01 a.m. ET on 24 February 2026 and entered for consumption before 12:01 a.m. ET on 28 February 2026.

De minimis remains suspended: CBP has confirmed the suspension of de minimis duty-free treatment continues under the Section 122 regime, and goods remain ineligible for de minimis entry unless they fall under specific statutory exceptions.

How it interacts with adjacent measures

The surcharge sits on top of the ordinary duty stack but is subordinate to Section 232. It does not stack on Section 232 (steel, aluminum, copper, autos), and does stack on Section 301: Chinese-origin goods subject to Section 301 tariffs face both the Section 301 rate and the 10% Section 122 surcharge. Drawback is available on the additional duties, and FTZ goods generally must be admitted as privileged foreign status. Most goods admitted into an FTZ on or after February 24 must be admitted as "privileged foreign status"; drawback is available for these additional duties.

Key dates and status

| Date | Event | |------|-------| | Feb 20, 2026 | Supreme Court holds IEEPA does not authorize tariffs; Proclamation 11012 signed the same day | | Feb 24, 2026 | 10% surcharge takes effect (12:01 a.m. EST) | | May 7, 2026 | CIT holds, 2-1, that the surcharge exceeds the President's statutory authority | | May 12, 2026 | CAFC issues an administrative stay of the CIT's ruling | | May 20, 2026 | CIT denies the government's motion for a stay pending appeal | | Jun 11, 2026 | CAFC grants a stay of the CIT's injunction, letting CBP keep collecting | | Jul 24, 2026 | Statutory expiration (12:01 a.m. EDT) absent congressional extension |

The litigation and the sunset are separate tracks. On the legal side, the trade court struck the surcharge down but the appeals court paused that ruling. Because the CIT's injunction is now stayed, CBP will continue to collect these duties on all importers until July 24, 2026. Notably, the appeals court signaled the government may win: the CAFC concluded that the government had made a sufficient showing that it is likely to succeed on the merits. On the sunset side, Section 122 caps a balance-of-payments surcharge at 150 days unless Congress affirmatively extends it, and no extension legislation is pending; absent congressional action, the surcharge terminates on its own terms. As of mid-July 2026, no extension bill has advanced.

What operators typically need to do

- Pay the 10% now, but preserve refund rights. Collection continues under the stay. There is currently no administrative refund mechanism, so proactive recordkeeping is essential. If courts ultimately void the surcharge, every dollar of the 10% paid between February 24 and July 24 becomes a refund candidate.

- Track protest and post-summary-correction deadlines on affected entries, and review contract pass-through and refund-allocation clauses. - Watch entry timing around the deadline. Duty rates are set by the date of entry, not the ship date; goods rushed to enter before July 24 lock in the 10%, while goods entered after the lapse may land in a gap.

- Model post-July-24 scenarios. Relief is not assured — the administration has signalled it intends to replace the expiring surcharge with country-specific tariffs under Section 301, with USTR investigations already underway timed to take effect before the window closes.

Quick answers

What is the current Section 122 rate? The operative rate is 10% ad valorem, per Proclamation 11012 and CBP's CSMS. The 15% figure is the statutory ceiling under 19 U.S.C. § 2132(a), not the rate importers are paying.

Is the Section 122 surcharge still being collected? Yes. Although the CIT ruled it unlawful, the surcharge remains in effect and continues to be collected from all importers by CBP; it expires on July 24, 2026, unless Congress extends it, which is considered unlikely.

When does Section 122 expire?

The surcharge is scheduled to expire by operation of law at 12:01 a.m. EDT on July 24, 2026 — 150 days after it took effect on February 24.

Can the President extend it without Congress? No. The current expiration is July 24, 2026, unless Congress extends it; the administration cannot unilaterally extend Section 122.

Will duties be refunded? Not automatically and not yet. This decision is not yet final and thus does not provide a basis for importers to seek refunds on entries subject to Section 122 tariffs. Refunds depend on the outcome of the CAFC appeal and any further Supreme Court review.

Primary sources

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This page is informational only and is not legal, customs, or trade-compliance advice. Rates and rules change; verify against the linked primary sources or with a licensed customs broker before acting.