Temporary 10% Import Surcharge Imposed Under Section 122
Additional Resources:
On February 20, 2026, the Administration invoked Section 122 of the Trade Act of 1974 to impose a temporary, across-the-board 10% ad valorem import duty on most goods entering the United States.
The measure is intended to address what the Administration has characterized as “fundamental international payments problems,” including persistent balance-of-payments deficits and related macroeconomic risks.
Key Dates
Effective: February 24, 2026 at 12:01 a.m. EST
Duration: Up to 150 days
Expiration: July 24, 2026 (unless extended by Congress)
This action replaces prior IEEPA-based tariff measures following Supreme Court invalidation and is being treated as a regular customs duty for entry and liquidation purposes.
1. Core Measure – What Changed
A 10% ad valorem surcharge applies to nearly all imports from all countries.
Implemented through HTSUS Chapter 99 – 9903.03.01.
Applies in addition to all other duties, including:
Column 1 (MFN) rates
Section 301 duties
Antidumping (AD) and Countervailing Duties (CVD)
Any other applicable duties
Operates as a temporary but broad compliance overlay across U.S. imports.
Establishes a uniform global surcharge (no country-tier differentiation).
Important:
The surcharge does not replace other tariffs.
It stacks unless specifically excluded (see below).
2. Stacking Rules (Critical for Entry Filing)
Applies ON TOP OF:
Standard HTS duty (Column 1 General)
Section 301 duties (e.g., China)
AD/CVD orders
Any other applicable trade remedies
Section 232 Interaction (Nuanced)
If Section 232 applies to the full value of the good → the Section 122 surcharge does not apply.
If Section 232 applies to only a portion of the value (e.g., metal content rules):
Section 122 applies to the non-232 portion only.
This distinction will be important for accurate entry declarations.
3. Annex II – Product-Level Exclusions
Annex II contains more than 1,000 HTS-level exclusions implemented via Chapter 99 carve-outs (9903.03.02 – 9903.03.11).
Key Excluded Categories
A. Energy & Natural Resources
Crude oil and petroleum products
Natural gas and coal
Critical minerals (e.g., lithium, cobalt, rare earths)
B. Agriculture & Food Inputs
Certain staple agricultural products
Fertilizers and inputs not sufficiently produced domestically
C. Pharmaceuticals & Medical
Finished pharmaceuticals
Active pharmaceutical ingredients (APIs)
D. Strategic / Industrial Inputs
Semiconductors and select electronics
Certain chemicals and industrial feedstocks
E. Transportation & Aerospace
Aircraft and aerospace components
Passenger vehicles and certain vehicle parts
F. Miscellaneous
Bullion and currency metals
Informational materials (e.g., books)
Donations and accompanied baggage
4. Programmatic / Legal Exclusions (Non-Annex)
USMCA
Goods qualifying under General Note 11 (Canada and Mexico) remain duty-free and are not subject to the surcharge.
CAFTA-DR Textiles
Qualifying duty-free apparel remains exempt.
Section 232 Goods
Steel, aluminum, autos, and other products covered under Section 232 are exempt from the surcharge to the extent Section 232 applies.
5. Special Entry Scenarios
In-Transit Exception
Goods are exempt if:
Loaded onto a vessel before February 24, 2026
Entered before February 28, 2026
Foreign Trade Zones (FTZ)
Must be admitted in Privileged Foreign Status.
Section 122 liability is locked in at time of admission.
De Minimis
Duty-free de minimis treatment has been suspended for all countries.
Low-value shipments, including postal shipments, are now subject to the 10% surcharge.
6. Country Treatment
Applies globally to all countries.
No country-specific rates.
No reciprocal differentiation.
Creates a global 10% rate floor.
Effectively:
Countries previously subject to high IEEPA tariffs may see lower effective rates.
Countries with low or zero duty exposure now face a minimum 10% surcharge.
Compliance Impact
This measure significantly affects:
Entry filings
Duty calculations
FTZ admissions
De minimis shipments
Stacking analysis for 232 / 301 / AD-CVD goods
Importers should review classification accuracy, exclusion eligibility, and valuation methodology to ensure proper application of the surcharge.
Important
This is a developing situation. As of now, there is no published implementation guidance, no refund procedures, and no announced administrative process related to the impacted tariffs.
We will continue monitoring for official agency direction and provide additional updates as more information becomes available.