U.S. Imposes 10% Temporary Import Surcharge Under Section 122 (Updated)

Published Feb. 24, 2026 | Updated Feb. 25, 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.
   

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.

The new Section 122 global tariffs took effect at 12:01 a.m. EST on February 24, 2026. 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. The surcharge will remain in place through July 24, 2026, unless the President modifies or terminates it earlier.

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

Section 122 authorizes the President to impose temporary import surcharges or quantitative restrictions to address balance-of-payments concerns.

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.

While the proclamation states that the rate could increase up to 15%, no official announcement has confirmed an increase beyond 10% at this time.

CBP Guidance

Effective Period

• Applies to entries or withdrawals from warehouse for consumption from 12:01 a.m. EST on February 24, 2026
• Scheduled to remain in effect through 12:01 a.m. EDT on July 24, 2026

The duty applies under HTSUS heading 9903.03.01 unless an exemption under 9903.03.02–9903.03.11 applies.

Exemptions Under HTSUS 9903.03.02–9903.03.11

CBP confirmed the following exemptions:

9903.03.02 – Goods in Transit

Articles qualify if they:

1. Loaded onto a vessel and entered final transit before 12:01 a.m. EST on February 24, 2026; and
2. Entered for consumption or withdrawn from warehouse before 12:01 a.m. EST on February 28, 2026.

9903.03.03 – Critical Minerals, Energy, and Natural Resources

Includes certain critical minerals, metals used in currency and bullion, energy products, fertilizers, and natural resources listed in Annex I of the order.

9903.03.04 – Agricultural, Religious, and Specialty Products

Covers specific agricultural goods, food, beverages, essential oils, and religious-use or specialty fruit products listed in Annex II.

9903.03.05 – Civil Aircraft

Applies to civil aircraft, engines, parts, components, and ground flight simulators, subject to scope limitations.

9903.03.06 – Section 232 Goods

Goods already subject to Section 232 trade remedies qualify for exemption from the Section 122 surcharge.

9903.03.07–.08 – USMCA-Eligible Goods

• 9903.03.07 – USMCA-eligible products of Canada
• 9903.03.08 – USMCA-eligible products of Mexico

9903.03.09 – CAFTA-DR Textile Products

Applies to qualifying textile products from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

9903.03.10 – Humanitarian Donations

Includes food, clothing, medicine, and similar articles donated to relieve human suffering.

9903.03.11 – Informational Materials

Covers Chapter 49 materials such as publications, films, CDs, artworks, and news wire feeds.

Chapter 98 Considerations

In general, goods properly entered under applicable Chapter 98 provisions may continue to qualify for relief from the Section 122 surcharge, subject to CBP review and regulatory requirements.

However, additional duties may apply in certain situations involving repairs, alterations, or assembly abroad.

Foreign Trade Zones

Importers using Foreign Trade Zones should review admission status carefully.

Section 122-covered merchandise admitted on or after February 24, 2026, will generally require privileged foreign status. This requirement may affect duty planning strategies and downstream consumption entries.

Drawback

CBP confirmed that drawback remains available for Section 122 duties. Importers may pursue drawback under standard procedures and eligibility rules.

Order of Duty Assessment

Section 122 duties apply in addition to other trade remedies, including Sections 301, 232, and 201. CBP has issued guidance on sequencing:

1. Chapter 98 (if applicable)
2. Chapter 99: Section 301 → Section 122 → Section 232 → Section 201
3. Chapter 99: Replacement duties or Miscellaneous Tariff Bill provisions
4. Chapter 1–97 commodity classification

Entered value is reported under Chapter 1–97 unless Chapter 98 reporting rules require 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

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