Trump Announces 10% Global Tariff Under Section 122 After Supreme Court Ruling

What Happened

On the same day the Supreme Court struck down IEEPA tariffs in a 6-3 ruling, President Trump announced a replacement tariff using a different legal authority. The new 10% global tariff is imposed under Section 122 of the Trade Act of 1974, which allows the president to impose temporary import surcharges when facing balance-of-payments deficits.

Trump signed the executive order on the evening of February 20, 2026, with the tariff taking effect at 12:01 AM ET on February 24, 2026.

Key Details

Rate

• 10% ad valorem on all imported goods
• Applied "over and above" existing tariffs (Section 301, Section 232, etc.)
• Section 122 allows a maximum of 15% — Trump used 10%

Scope

• All countries — Section 122 tariffs must be applied uniformly and cannot target individual nations
• This differs from the struck-down IEEPA tariffs, which had country-specific rates (145% on China, 25% on Canada/Mexico, etc.)

Duration

• Maximum 150 days without congressional action
• Expires around July 20, 2026 unless Congress votes to extend
• Any extension requires legislative approval

Effective Date

• February 24, 2026 at 12:01 AM ET
• Goods already in transit or entered before this date are not affected

Impact by Country

Since the new tariff is a flat 10% on all countries, the total tariff burden shifts significantly:

| Country | Previous IEEPA Rate | New Section 122 Rate | Other Tariffs | New Total | |---|---|---|---|---| | China | 30% (struck down) | 10% | ~25% avg Section 301 | ~35% | | Canada | 25% (struck down) | 10% | 0% (USMCA goods exempt from 301) | 10% | | Mexico | 25% (struck down) | 10% | 0% (USMCA goods exempt from 301) | 10% | | EU | 10% (struck down) | 10% | Varies by product | 10%+ | | Japan | 10% (struck down) | 10% | Varies by product | 10%+ | | All others | 10% (struck down) | 10% | Varies | 10%+ |

Net effect: Most countries see little change (was 10% IEEPA, now 10% Section 122). Canada and Mexico see a significant reduction (from 25% to 10%). China sees the biggest drop (from 30% IEEPA to 10% Section 122, though Section 301 tariffs remain).

Legal Basis: Section 122

Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132) authorizes the president to impose temporary import surcharges when:

1. The US faces "large and serious" balance-of-payments deficits
2. The surcharge does not exceed 15% ad valorem
3. The surcharge is applied uniformly (no country targeting)
4. Duration is limited to 150 days without congressional approval

Legal experts note that this authority has never been used for broad tariff policy — it was designed as an emergency economic stabilization tool. Legal challenges are expected, though the 150-day expiration may make court challenges moot.

What This Means for Importers

Immediate Actions

• Review your supply chain costs — the 10% applies starting Feb 24
• File for IEEPA refunds — use our refund calculator to check eligibility for the struck-down tariffs
• Track the 150-day clock — this tariff expires around July 20 without Congress

Products Still Subject to Additional Tariffs

• Steel & aluminum: Section 232 tariffs remain (25% steel, 10% aluminum) PLUS the new 10%
• Chinese goods: Section 301 tariffs remain PLUS the new 10%
• Solar panels, washing machines: Section 201 safeguard tariffs remain PLUS the new 10%

What Happens Next

1. Legal challenges are expected, though the temporary nature of Section 122 may limit their scope
2. Congress will need to decide whether to extend the tariff before the 150-day window closes
3. Trade negotiations may accelerate as countries seek bilateral deals
4. IEEPA refund processing begins — CBP has been directed to accept claims

Use Our Tools

• IEEPA Refund Calculator — Check if your past imports qualify for a refund
• Tariff Calculator — Estimate current duty rates including the new 10% global tariff
• Country Rates — View country-specific tariff information