U.S. 10% Section 122 Tariff In Effect Feb. 24; IEEPA Tariffs Cease, De Minimis Suspension Continues (Updated)
Published Feb. 21, 2026 | Updated Feb. 24, 2026
Key Points
Latest Update: On Feb. 23, 2026, CBP issued guidance confirming that the suspension of duty-free de minimis treatment continues for all countries, while imposing a 10% import surcharge on all goods entering the U.S.
- On Feb. 22, 2026, CBP confirmed that IEEPA duty collection will cease for goods entered or withdrawn from warehouse for consumption on or after 12:00 a.m. ET on February 24, 2026, and related HTSUS subheadings will be deactivated in ACE.
10% Section 122 Tariff Effective Feb. 24: Applies across the board for 150 days through July 24, 2026.
“In Transit” Exemption: Goods loaded before Feb. 24 and entered before Feb. 28 are exempt.
Tariff Subheadings: 9903.03.01 for Section 122 duty and 9903.03.02–9903.03.11 for exemptions.
USMCA Exemption: Goods qualifying under USMCA are not subject to the Section 122 tariff.
Section 232 Exemption: Products already covered by Section 232 tariffs are exempt to prevent stacking.
Reciprocal Tariff Carryovers: Certain agricultural, pharmaceutical, electronics, vehicle, aerospace, and informational products remain exempt.
CAFTA-DR Textiles and Apparel: Textiles and apparel from CAFTA-DR countries enter duty-free.
IEEPA Tariffs Ending: Agencies directed to cease collection “as soon as practicable,” with no set effective date.
De Minimis Suspension Continues: Duty-free de minimis treatment remains suspended for all countries.
Compliance Reminder: Review HTS classifications, confirm exemptions, ensure ACE entries reflect applicable duties, and monitor CBP guidance for pending implementation instructions.
On February 20, President Donald Trump issued a new proclamation imposing a temporary 10% ad valorem import duty under Section 122 of the Trade Act of 1974.
The tariff will take effect February 24 at 12:01 a.m. ET. measure applies on an across-the-board basis and will remain in effect for 150 days, through July 24, 2026, unless modified or terminated earlier – see [Fact Sheet: President Donald J. Trump Imposes a Temporary Import Duty to Address Fundamental International Payment Problems].
Note: A statement was made from the POTUS regarding a 15% duty, however, the Presidential Proclamation states the tariffs “import surcharge up to 15 percent ad valorem.” There have been no official communications supporting the 15% duty rate.
IEEPA Tariff and De Minimis EOs
In parallel, the administration issued a series of related executive orders, including direction to wind down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) – see [Executive Order: Ending Certain Tariff Actions], while maintaining the current suspension of de minimis treatment – see [Executive Order: Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries].
Latest Updates: On February 22, 2026, CBP issued guidance confirming that all IEEPA-related duties will no longer be collected for goods entered or withdrawn from warehouse for consumption on or after 12:00 a.m. ET on February 24, 2026.
Also, on Feb 23, 2026, CBP issued guidance confirming that all goods entering the U.S. remain ineligible for duty-free de minimis treatment and are subject to a 10% import surcharge, except for specific exemptions.
Overview of Section 122 Tariff
Section 122 authorizes the President to impose temporary import surcharges or quantitative restrictions to address balance-of-payments concerns. The statute permits such measures for up to 150 days without further Congressional action.
Tariff Classification and Tariff Exemptions
Goods subject to the Section 122 tariff will be reported under a new subheading:
9903.03.01 – 10% ad valorem Section 122 duty
According to the White House fact sheet and the Section 122 proclamation, various categories of goods are exempt from the 10% tariff. New subheadings 9903.03.02 through 9903.03.11 will be used to declare various exemptions and are as follows:
9903.03.02 – Goods in Transit – Articles that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. eastern standard time on February 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern standard time on February 28, 2026. Importers relying on this provision should maintain documentation demonstrating vessel loading time, transit status, and entry timing.
9903.03.03 – Goods listed in Annex I of this order
9903.03.04 – Goods listed in Annex II of this order
9903.03.05 – Good for use in Civil aircraft as noted in the “Scope Limitations” column of Annex II.
9903.03.06 – Goods subject and assessed duty under Section 232 Trade Remedies
9903.03.07 – USMCA eligible products of Canada
9903.03.08 – USMCA eligible products of Mexico.
9903.03.09 – Textiles products of Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua
9903.03.10 – Articles that are donations, by persons subject to the jurisdiction of the United States, such as food, clothing and medicine, intended to be used to relieve human suffering.
9903.03.11 – Articles (Chapter 49) that are informational materials, including but not limited to publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks and news wire feeds.
Termination of IEEPA Tariffs (in Effect Feb. 24, 2026)
In the Executive Order: Ending Certain Tariff Actions, the President directed federal agencies to:
“Take all appropriate steps” to end tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and cease collection of duties.
CBP Guidance Available
CBP’s guidance clarified that it will stop collecting all IEEPA-based duties on goods entered or withdrawn for consumption on or after 12:00 a.m. ET on February 24, 2026.
The update covers tariffs imposed under Executive Orders 14193, 14194, 14195, 14245, 14257, 14323, and 14329.
ACE programming and all related HTSUS numbers will be inactivated as of February 24, 2026.
This applies only to IEEPA duties; Section 232 and Section 301 tariffs remain unaffected.
Importers should monitor CBP guidance and ACE entries to ensure compliance.
IEEPA Refunds
The Supreme Court decision and Executive Order do not establish an automatic refund mechanism for IEEPA duties already paid. Jurisdiction over any recovery of those duties will return to the U.S. Court of International Trade (CIT), and refunds—if granted—are expected to proceed through litigation or formal administrative processes. Additional guidance from CBP or the courts is still pending. We will continue to monitor developments closely and provide an update as soon as refund procedures or filing requirements are clarified.
We recommend the following action as the best practice for recordkeeping to prepare for possible refund filing:
- Preserve records of duties paid under IEEPA tariffs.
- Note that Section 232 tariffs supersede IEEPA in some cases; entries subject to Section 232 may not have incurred IEEPA duties.
- Importers should weigh the potential refund against the administrative costs involved before proceeding.
De Minimis Suspension Remains in Place
The current suspension of de minimis eligibility remains unchanged. Entries previously ineligible for de minimis treatment remain subject to standard customs procedures.
Latest Update
On February 23, 2026, CBP issued guidance clarifying that the suspension of de minimis eligibility remains in effect. Entries previously ineligible for de minimis treatment continue to follow standard customs procedures.
- Effective date: February 24, 2026, 12:01 a.m. EST
- Scope: All goods entered for consumption or withdrawn from warehouse for consumption, regardless of country of origin
- Surcharge: An additional 10% import surcharge, unless specifically exempt
Additionally, it confirms that all goods entering the U.S. remain ineligible for the administrative exemption from duties and certain taxes under 19 U.S.C. § 1321(a)(2)(C). Exceptions under 50 U.S.C. 1702(b) include:
- Certain donations
- Informational materials
- Accompanied personal baggage
CBP also confirmed that the current processes to file entries and collect duties on shipments that previously qualified for de minimis treatment will remain in place. This includes shipments entering through international mail.
- All other shipments that would have qualified for de minimis treatment prior to Executive Order 14324 must now be filed as the appropriate entry type in ACE, except those covered under Section 3, as amended by the February 20, 2026, Executive Order.
International mail shipments continue to follow the processes outlined in CSMS #66311990.
Compliance Considerations for Importers and Customs Brokers
Review product exposure to 9903.03.01 classification.
Validate exemption eligibility, particularly USMCA and CAFTA-DR claims.
Confirm Section 232 overlap to prevent improper duty stacking.
Assess FTZ inventory strategy in light of privileged foreign status requirements.
Monitor CBP guidance for implementation instructions and ACE programming updates.
Importers should perform a detailed, line-by-line validation of their HTS classifications against Annex 1 and Annex 2 to confirm whether merchandise is subject to new subheading 9903.03.01 or qualifies for an applicable exemption under 9903.03.02–9903.03.11.
Entry summaries must reflect the additional 10% ad valorem duty for all covered goods entered on or after 12:01 a.m. ET on February 24, with appropriate reporting in ACE to avoid post-summary corrections, liquidated damages exposure, or duty underpayment.
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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