The Section 122 Surcharge Ended July 24, 2026

    The 10% Section 122 import surcharge ran from February 24 through July 24, 2026, then expired under its 150-day statutory cap. The Court of International Trade's ruling against it is still on appeal — here's what that means for duties you already paid, and what replaced the surcharge.

    Reviewed by the Strix licensed brokerage team (U.S. customs broker, filer code 8ND) · Last reviewed August 31, 2026

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    What is Section 122?

    Section 122 of the Trade Act of 1974 grants the President authority to impose temporary import surcharges of up to 15% for a period of up to 150 days. Unlike IEEPA — which was struck down by the Supreme Court for lacking tariff authority — Section 122 was specifically designed by Congress to provide the executive branch with limited, time-bound trade adjustment tools. In 2026, the President used this authority to impose a 10% surcharge that ran from February 24 through July 24, 2026.

    This is a fundamentally different legal basis than IEEPA. Section 122 explicitly authorizes import surcharges, but with strict limitations: the surcharge cannot exceed 15%, and it expires automatically after 150 days unless Congress acts to extend it. That 150-day cap is exactly what ended the 2026 surcharge on July 24 — Congress did not act to extend it, and the Court of International Trade's separate ruling against the surcharge remains on appeal.

    Legal Authority

    Trade Act of 1974, Section 122 — explicit Congressional authorization for temporary import surcharges

    How It Differs

    Unlike IEEPA, Section 122 has built-in limits: max 15% rate and 150-day duration

    Temporary Measure

    Automatically expired after 150 days, on July 24, 2026 — Congress did not act to extend it

    Key Details

    10% Ad Valorem While It Ran

    A flat 10% surcharge applied to the customs value of imported goods, on top of any existing duties, for entries filed during the surcharge period.

    In Effect February 24 – July 24, 2026

    The surcharge took effect four days after the Supreme Court's IEEPA ruling and applied to goods entered for consumption through July 24, 2026, when it expired.

    Expired After Its 150-Day Limit

    Section 122 caps temporary surcharges at 150 days. The surcharge reached that limit and expired on July 24, 2026; Congress did not extend it.

    Was Applied on Top of Existing Duties

    While in effect, the 10% surcharge was assessed in addition to all other applicable duties, including Section 232 (steel/aluminum) and Section 301 tariffs, which remain in effect independently.

    10%

    Surcharge rate

    Feb 24

    Start date

    150

    Statutory day limit

    Jul 24

    Expiration date

    Exemptions from the Surcharge

    While the 10% Section 122 surcharge was in effect, the following categories of goods were exempt — worth reviewing if you're checking past entries:

    USMCA-Qualifying Goods

    Goods from Canada and Mexico that qualified under the United States-Mexico-Canada Agreement were exempt from the surcharge.

    Section 232 Products

    Products already subject to Section 232 tariffs — specifically steel and aluminum — were not subject to the additional surcharge.

    Certain Agricultural Products

    Select agricultural products were exempted from the surcharge to minimize food supply chain disruption.

    Pharmaceutical Products

    Pharmaceutical imports were exempt to avoid increases in healthcare costs.

    Aerospace Components

    Certain aerospace components were exempt due to national security and supply chain considerations.

    What Remains Unchanged

    Section 122 surcharge collections ended July 24, 2026, but several other trade measures remain fully in effect and are unaffected by that expiration:

    Section 232 Tariffs (Steel & Aluminum)

    Section 232 tariffs on steel and aluminum imports are unaffected by the IEEPA ruling. These remain at their current rates.

    Section 301 Tariffs

    Section 301 tariffs on Chinese goods rest on separate legal authority and remain unaffected by the Section 122 expiration. A new Section 301 forced-labor action also took effect July 24, 2026, adding 10-12.5% duties on products from about 60 economies, with exemptions for USMCA, CAFTA-DR, and Section 232 goods and roughly 471 exempted HTS subheadings.

    Standard MFN Duty Rates

    Standard Most Favored Nation duty rates under the Harmonized Tariff Schedule remain unchanged.

    All Other Trade Agreements

    Existing trade agreements, preferential trade programs, and other duty arrangements remain in effect.

    How Strix Can Help

    Review Your Surcharge Entries

    We help you audit entries filed February 24 – July 24, 2026, to confirm the surcharge was calculated correctly and flag any that may be overpaid.

    Post Summary Corrections

    A PSC corrects an entry before it liquidates — and on surcharge entries, that is the route that is actually open right now. We file the correction and, for re-exported goods, duty drawback claims. How a Post Summary Correction works

    Forced-Labor Section 301 Compliance

    A new Section 301 forced-labor action took effect July 24, 2026, on goods from about 60 economies. We help you confirm exemptions and file correctly. See what's exempt and what to do next

    Why a correction now, and not a protest

    These two remedies run on different clocks, and the order matters. A protest is filed after an entry liquidates. A Post Summary Correction is filed before. Every entry from the surcharge period is still pre-liquidation today — which means the protest window has not opened yet, and the PSC window is already closing.

    Now — the PSC window is open

    A PSC must be filed within 300 days of entry, and at least 15 days before the entry liquidates. For the earliest surcharge entries, that deadline falls in late December 2026.

    January – June 2027 — entries liquidate

    Entries typically liquidate 314 days after entry unless extended. For entries filed February 24 – July 24, 2026, that lands roughly January through June 2027.

    After liquidation — the protest window opens

    180 days from the date of liquidation, and missing it is an absolute bar to recovery. But it cannot be filed early, so no surcharge entry can be protested yet.

    If you have been waiting for the protest window to open, you are waiting on the clock that opens last. The one that closes first is already running. See how a PSC works or call (406) 922-6600 to have your surcharge entries reviewed.

    Claim IEEPA Refunds

    Roughly $165 billion in refunds are moving through CBP's CAPE process following the Supreme Court ruling. CAPE is the primary path — for entries CAPE misses, a Post Summary Correction or protest recovers duties paid under IEEPA tariffs. File for IEEPA refunds

    Customs Brokerage Services

    Let our licensed customs brokers review entries filed during the surcharge period and help you stay compliant with the Section 301 forced-labor requirements that followed it. View brokerage services

    Questions about the surcharge, your refund options, or the new Section 301 forced-labor tariffs? We're here to help.

    (406) 922-6600 · sales@strixsmart.com