10% Global Tariff Imposed Under Section 122 of the Trade Act of 1974
Hours after the SCOTUS ruling, the President imposed a flat 10% surcharge on most U.S. imports under Section 122, effective Feb 24 and limited to 150 days unless Congress extends it.
What this affects
The update
Hours after the SCOTUS ruling, the President issued a proclamation imposing a flat 10% surcharge on most U.S. imports under Section 122, citing balance-of-payments deficits. The tariff applies uniformly to all countries (no country-specific rates) and took effect Feb 24 at 12:01 a.m. ET. It is limited to 150 days unless Congress extends it.
Impact
Unlike the old IEEPA regime, Section 122 applies a single flat rate across all trading partners. Countries that previously faced high IEEPA rates (e.g., China, India, Vietnam) now see lower duties, while countries with low or negotiated rates may face higher ones. The 150-day clock creates a hard deadline for the Administration to establish replacement authorities.
What to watch
USMCA-qualifying goods exempt. Section 232 products excluded (no stacking). Critical minerals, energy, pharma, and electronics also exempt. In-transit exemption for goods loaded before Feb 24. The 150-day statutory limit ran out on July 24, 2026 unless Congress extended it.
How to prepare
- 1Model both 10% and 15% on your top SKUs
The statutory ceiling is 15%, so quoting on 10% alone leaves the gap unpriced.
- 2Confirm USMCA qualification where it applies
Qualifying goods are exempt, which can outweigh a unit-price difference elsewhere.
- 3Check the in-transit exemption on open orders
Goods loaded before the effective date were treated differently, so shipment dates matter.