Treasury Secretary Confirms Section 122 Tariff Increase to 15% Expected This Month
Treasury Secretary Bessent confirmed the Section 122 global surcharge will rise from 10% to 15% (the statutory maximum), though no formal implementing order had been issued as of the update.
What this affects
The update
Treasury Secretary Bessent confirmed the Section 122 global surcharge will increase from 10% to 15% (the statutory maximum). The President announced the increase on Feb 21 via social media, but as of this update no formal implementing order had been issued. Bessent also stated tariff rates would return to pre-SCOTUS levels within five months using other authorities.
Impact
A 15% floor raises landed costs across nearly all non-exempt imports. Importers quoting prices or planning inventory should model both the 10% and 15% scenarios until the formal order is published. The surcharge still expires July 24 unless Congress extends it.
What to watch
No formal order issued as of this update; monitor the Federal Register. USMCA-qualifying goods and Section 232 products remain exempt. 24 states have filed suit to block Section 122 tariffs.
How to prepare
- 1Quote against the 15% case
Treat 15% as the planning number until a formal order settles it either way.
- 2Flag contracts that cannot absorb five points
Fixed-price commitments running past the decision are where the damage lands.