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U.S. Imposes 10% Temporary Import Surcharge Under Section 122 (CBP Guidance Issued)

Trade Update • February 24, 2026

Key Points

  • CBP’s latest guidance confirms 10% ad valorem duty applies to most imports from all countries for 150 days.
  • The surcharge takes effect 12:01 a.m. EST on February 24, 2026.
  • The measure stems from the February 20, 2026 Presidential Proclamation under Section 122 of the Trade Act of 1974.
  • Specific exemptions apply under HTSUS headings 9903.03.02–9903.03.11.
  • Drawback remains available for the additional duties.
Shipping containers beneath a large U.S. flag, representing the new 10% Section 122 import surcharge on global goods

S​​​​​​​​​hortly after the Supreme Court struck down the administration’s IEEPA tariff authority on February 20, 2026, the White House issued a series of official actions, including the imposition of a 10% import surcharge under Section 122 and continuing the suspension of duty‑free de minimis treatment for all countries. On the same day, President Trump also issued a proclamation confirming the 10% surcharge and stating it could be raised up to the statutory maximum of 15% under Section 122 authority.

On February 24, 2026, CBP issued formal guidance confirming that imports from any country entered on or after that date would be subject to the 10% ad valorem duty under Section 122, with specified exemptions. There’s no official announcement yet confirming the 15% rate.

Section 122 Tariffs to Address U.S. Balance-of-Payments Deficits

According to the proclamation, the 10% tariffs aim to address fundamental international payments problems, including large and persistent U.S. balance-of-payments deficits and pressures on the dollar. The order imposes a temporary 10% ad valorem import surcharge for a period of 150 days, effective February 24, 2026.

CBP Guidance

Effective Dates:

  • Entries or withdrawals from warehouse: 12:01 a.m. EST, February 24, 2026 – 12:01 a.m. EDT, July 24, 2026.
  • Duty applied under HTSUS heading 9903.03.01, except exempted products and personal baggage.

Exemptions (HTSUS headings 9903.03.02–9903.03.11):

  • 9903.03.02: Goods in transit loaded before Feb 24, 2026, and entered by Feb 28, 2026.
  • 9903.03.03–.04: Certain agricultural, religious, and specialty foods (acai, citrus juices, essential oils). Documentation required.
  • 9903.03.05: Civil aircraft, engines, parts, components, and ground flight simulators. Documentation required.
  • 9903.03.06: Iron, steel, aluminum, passenger vehicles, light and heavy trucks, semiconductors, copper, wood products.
  • 9903.03.07–.08: Goods from Canada and Mexico under USMCA.
  • 9903.03.09: Textiles/apparel from Central America under CAFTA-DR.
  • 9903.03.10: Humanitarian donations (food, clothing, medicine).
  • 9903.03.11: Informational materials (publications, films, CDs, artworks, news feeds).

Chapter 98 Reporting:

  • Duties do not apply to entries claimed under Chapter 98 provisions unless otherwise noted. Additional duties may apply to repairs, alterations, or assembly abroad.

Foreign Trade Zones:

  • Eligible imports admitted under “privileged foreign status” will be subject to the Section 122 duties upon consumption.

Drawback:

  • Drawback is available on additional Section 122 duties.

HTS Sequence for Entry Summaries:

  1. Chapter 98 (if applicable)
  2. Chapter 99: Section 301 → Section 122 → Section 232 → Section 201 duties/quotas
  3. Chapter 99: Replacement duties or Miscellaneous Tariff Bill provisions
  4. Chapter 1–97 commodity classification
  • Entered value reported on Chapter 1–97 HTS, unless Chapter 98 reporting requires otherwise.

Assistance:

  • CBP will issue additional CSMS guidance as needed.
  • Filing errors: contact CBP client representative or ACE Help Desk.
  • Questions: traderelations@cbp.dhs.gov

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.

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