Trump Raises Global Tariff to 15% — Maximum Allowed Under Section 122
One day after announcing a 10% global tariff, President Trump increased it to 15% — the maximum allowed under Section 122 of the Trade Act of 1974. The tariff takes effect February 24 and expires after 150 days unless Congress acts. Several product categories are exempt.
What Changed
On February 21, 2026, President Trump announced he is raising the Section 122 global tariff from 10% to 15% — the statutory maximum. This comes just one day after the initial 10% announcement, which itself was a response to the Supreme Court striking down IEEPA tariffs.
The tariff still takes effect February 24, 2026 at 12:01 AM ET.
Key Details
| Detail | Value | |---|---| | Rate | 15% ad valorem (up from 10%) | | Legal authority | Section 122, Trade Act of 1974 | | Effective date | February 24, 2026 | | Duration | 150 days (expires ~July 24, 2026) | | Scope | All countries, uniform | | Maximum allowed | 15% (now at the cap) |
Exemptions
The executive order carves out several product categories from the 15% tariff:
- Agricultural products — beef, tomatoes, oranges, and certain other food items
- Critical minerals and metals — strategic materials for defense and technology
- Pharmaceuticals — prescription drugs and active ingredients
- Some electronics — certain consumer electronics categories
- Passenger vehicles — already subject to separate Section 232 tariffs
The full list of exempt HTS codes has not yet been published. We will update this post when the Federal Register notice is released.
Impact
Compared to IEEPA Tariffs
The 15% flat rate is still significantly lower than what most countries faced under IEEPA:
| Country | Old IEEPA Rate | New Section 122 Rate | Change | |---|---|---|---| | China | 30% | 15% | -15 points | | Canada | 25% | 15% | -10 points | | Mexico | 25% | 15% | -10 points | | Vietnam | 10% | 15% | +5 points | | EU | 10% | 15% | +5 points | | UK, Brazil, Australia, etc. | 10% | 15% | +5 points |
Countries that had the 10% reciprocal rate under IEEPA will actually see a higher tariff under Section 122 (15% vs 10%). Countries that had higher IEEPA rates (China, Canada, Mexico) see a reduction.
Stacking with Other Tariffs
The 15% is applied on top of existing tariffs:
- Chinese goods: 15% Section 122 + ~25% avg Section 301 = ~40% total
- Steel: 15% Section 122 + 25% Section 232 = 40% total
- Aluminum: 15% Section 122 + 10% Section 232 = 25% total
The 150-Day Clock
Section 122 tariffs expire automatically after 150 days. The clock started February 24, meaning:
- Expiration date: approximately July 24, 2026
- Congress must pass legislation to extend or replace
- If Congress doesn't act, tariffs drop to pre-IEEPA levels (just Section 301/232/201)
What This Means for Importers
- IEEPA refunds are still valid — the Section 122 tariff is separate; check your eligibility at our refund calculator
- Plan for 150 days — build Section 122 costs into your pricing through July, but be ready for them to expire
- Watch for the exemption list — if your products fall under the exemptions, you may not owe the 15%
- Check your total tariff burden — remember to add Section 301, 232, and 201 tariffs where applicable
Timeline
| Date | Event | |---|---| | Feb 20 | Supreme Court strikes down IEEPA tariffs | | Feb 20 | Trump announces 10% global tariff under Section 122 | | Feb 21 | Trump raises Section 122 tariff to 15% (maximum) | | Feb 24 | Section 122 tariff takes effect | | ~Jul 24 | Section 122 tariff expires without congressional action |