Trade Advisory: Temporary Import Duty Under Section 122 of the Trade Act of 1974

Overview

On February 23, 2026, President Donald J. Trump issued a Proclamation imposing a temporary import duty on most articles imported into the United States pursuant to Section 122 of the Trade Act of 1974. Section 122 authorizes the President to impose temporary import surcharges to address fundamental international balance-of-payments problems.

The duty takes effect February 24, 2026, at 12:01 a.m. Eastern Standard Time, and will remain in force for 150 days unless modified or terminated earlier.

Current Duty Rate

The legally effective duty rate is 10 percent ad valorem. The Proclamation does not provide for an automatic escalation of the duty during the 150-day period. While Section 122 permits duties of up to 15 percent, any increase above 10 percent would require additional formal Presidential action, such as a new or amended Proclamation.

Recent public statements by the President have referenced the statutory authority to impose a 15 percent rate; however, no revised Proclamation or Federal Register notice has been issued implementing an increase above 10 percent. Accordingly, 10 percent remains the operative rate for customs compliance and entry purposes.

Scope of Temporary Import Duty

A 10 percent ad valorem duty applies broadly to imported articles entered during the 150-day period, subject to specific exclusions.

Excluded from the additional duty are articles the product of any country 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United States, before 12:01 a.m. eastern standard time on February 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern standard time on February 28, 2026

Key Product-Based Exclusions

Excluded categories include certain critical minerals and metals used in currency and bullion; energy and energy products; natural resources and fertilizers not available domestically in sufficient quantities; certain agricultural products, including beef, tomatoes, and oranges; pharmaceuticals and pharmaceutical ingredients; certain electronics; certain aerospace products; and informational materials, donations, and accompanied baggage.

Trade Agreement and Legal Exclusions

The duty does not apply to articles already subject to or later becoming subject to Section 232 actions. To the extent a tariff imposed under section 232 applies to part of an import, the surcharge imposed in this proclamation shall apply to the part of the import to which section 232 tariffs do not apply, but shall not apply to the part of the import to which section 232 tariffs do apply.

The duty does not apply to USMCA-compliant goods of Canada and Mexico, and articles and certain duty-free textiles and apparel from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua under the CAFTA-DR.

The proclamation does not address the applicability of the new import duties under Section 122 on trade agreements with the E.U., Switzerland, and Liechtenstein, India, as well as other countries with specific import duties.

De Minimis Shipments

In a separate Executive Order, the President reaffirmed and continued the suspension of duty-free de minimis treatment, including for international postal shipments. As a result, low-value shipments are subject to the temporary import duty.

Related Trade Enforcement Actions

The President directed the Office of the United States Trade Representative to initiate Section 301 investigations into certain foreign acts, policies, and practices alleged to be unreasonable or discriminatory and to burden U.S. commerce.

Practical Implications for Importers

Importers face immediate duty exposure at the 10 percent rate beginning February 24, 2026. Accurate tariff classification and origin determinations are critical to confirming eligibility for exclusions. Companies relying on de minimis or postal shipments should reassess landed cost assumptions. Although the measure is temporary, extensions, rate changes, or follow-on trade actions remain possible with limited advance notice.

Key Takeaway

This action reflects a rare but legally grounded use of Section 122 authority to impose a broad, time-limited import surcharge tied to balance-of-payments concerns. While the statute allows duties of up to 15 percent, the only legally effective rate at present is 10 percent, and any increase would require further formal Presidential action.

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