Section 122 Tariff Expired July 24, 2026: What Importers Pay Now
By DutyGlobal Research · Published July 20, 2026 · Rates last reviewed 2026-07-20
The short version
- The 10% global import surcharge in force since February 24, 2026 expired at 12:01 a.m. EDT on July 24, 2026 — the 150-day maximum Section 122 allows without an Act of Congress. It is no longer collected on new entries.
- A federal trade court ruled it unlawful on May 7, but an appeals-court stay meant CBP kept collecting it until expiry from everyone except the three plaintiffs.
- Congress did not extend it — and a July 22 bill (Wyden) would repeal Section 122 outright.
- The catch: USTR's proposed Section 301 replacement duties (12.5% on 46 trading partners) missed their July 20 deadline and are still pending — the drop may be temporary for affected countries.
- Duty on most goods dropped by exactly 10 percentage points. Our table below shows what that means for 10 everyday import categories.
How we got here
- Feb 24, 202610% global surcharge takes effect under Section 122 of the Trade Act of 1974.
- May 7, 2026Court of International Trade rules 2-1 the surcharge exceeds statutory authority; relief limited to the three plaintiffs.
- May 2026Federal Circuit issues an administrative stay — CBP keeps collecting from everyone else during the appeal.
- Jun 2, 2026USTR proposes replacement Section 301 duties of 10–12.5% covering dozens of trading partners.
- Jul 7, 2026USTR holds its public hearing; 76 potential determinations expected to conclude before the sunset.
- Jul 22, 2026Sen. Wyden introduces a bill to repeal Section 122 outright — no extension bill ever advances.
- Jul 24, 2026Surcharge expires on schedule at 12:01 a.m. EDT — the 150-day statutory maximum. USTR's proposed 12.5% replacement is still pending.
Duty rates before and after July 24
The table shows the U.S. Column 1 (MFN) duty rate, today's total with the Section 122 surcharge, and the rate now that the surcharge has expired. Rates are origin-neutral: China-origin goods add Section 301 duties of 7.5–25% on top of every column, and those did not change on July 24. Section 232 goods (metals, autos, covered equipment) are excluded — the surcharge never applied to them. Rates verified 2026-07-20 against the 2026 HTS (Rev 10).
| Product category | HTS code | MFN rate | Before Jul 24 (with S.122) | Now |
|---|---|---|---|---|
| Leather handbags (valued ≤ $20) | 4202.21.60 | 10% | 20% | 10% |
| Laptops | 8471.30.01 | 0% | 10% | 0% |
| Cotton T-shirts | 6109.10.00 | 16.5% | 26.5% | 16.5% |
| Toys & wheeled toys | 9503.00.00 | 0% | 10% | 0% |
| Wooden furniture | 9403.60.80 | 0% | 10% | 0% |
| Bicycles (wheels ≤ 63.5 cm) | 8712.00.15 | 11% | 21% | 11% |
| Wood-platform leather footwear | 6403.99.20 | 8% | 18% | 8% |
| Backpacks (man-made fibers) | 4202.92.31 | 17.6% | 27.6% | 17.6% |
| Coffee makers | 8516.71.00 | 3.7% | 13.7% | 3.7% |
| Plastic plates & tableware | 3924.10.20 | 6.5% | 16.5% | 6.5% |
Leather handbags (valued ≤ $20)
HTS 4202.21.60 · MFN 10%
Before Jul 24 20% → Now 10%
Laptops
HTS 8471.30.01 · MFN 0%
Before Jul 24 10% → Now 0%
Cotton T-shirts
HTS 6109.10.00 · MFN 16.5%
Before Jul 24 26.5% → Now 16.5%
Toys & wheeled toys
HTS 9503.00.00 · MFN 0%
Before Jul 24 10% → Now 0%
Wooden furniture
HTS 9403.60.80 · MFN 0%
Before Jul 24 10% → Now 0%
Bicycles (wheels ≤ 63.5 cm)
HTS 8712.00.15 · MFN 11%
Before Jul 24 21% → Now 11%
Wood-platform leather footwear
HTS 6403.99.20 · MFN 8%
Before Jul 24 18% → Now 8%
Backpacks (man-made fibers)
HTS 4202.92.31 · MFN 17.6%
Before Jul 24 27.6% → Now 17.6%
Coffee makers
HTS 8516.71.00 · MFN 3.7%
Before Jul 24 13.7% → Now 3.7%
Plastic plates & tableware
HTS 3924.10.20 · MFN 6.5%
Before Jul 24 16.5% → Now 6.5%
Estimates only, for planning purposes — actual duty depends on classification, origin, valuation, and entry date. Not legal or customs advice.
How July 24 played out — and what is still open
A. Clean expiry — this is what happened (the table above)
Congress did nothing, no replacement landed in time, and entries on or after July 24 simply stop paying the 10 points. Goods with a Free MFN rate — laptops, most toys, most wooden furniture — are back to duty-free from most origins.
B. Section 301 replacement — still pending
USTR's proposal would impose 12.5% on imports from 46 trading partners under a different legal authority — country-specific and not time-capped at 150 days. It missed its July 20 completion deadline, so nothing replaced the surcharge at expiry — but if the final rule lands, duties for affected countries would rise again, and the new duties would be harder to challenge on the grounds that sank Section 122.
C. The courts — refunds still possible
The Federal Circuit appeal continues after the sunset. If the government ultimately loses, importers with open entries may have a path to refunds of surcharge already paid. Nothing is automatic — deadlines and procedures apply. Talk to a licensed customs broker or trade attorney; this page is not legal advice.
What importers should do now
- Check your entry dates. Duty is assessed on the entry date — entries on or after July 24 do not pay the surcharge; entries before it did.
- Watch the USTR determinations. If your origin country lands on the Section 301 replacement list, your July 24 saving may not materialise.
- Keep records for a possible refund. Entry summaries, 7501s, and proof of surcharge paid — if the litigation ends against the government, documentation decides who recovers.
- Re-run your landed cost now. A 10-point duty change moves margins; re-quote anything priced off pre-expiry duty.
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Frequently Asked Questions
When exactly did the Section 122 tariff expire?
At 12:01 a.m. EDT on July 24, 2026 — 150 days after it took effect on February 24, 2026. Section 122 of the Trade Act of 1974 caps a balance-of-payments surcharge at 150 days unless Congress extends it, and no extension was passed. Entries on or after July 24 do not pay the surcharge.
Did Congress extend the Section 122 surcharge?
No. The 150-day cap can only be extended by an Act of Congress, and no extension bill advanced. The momentum went the other way: on July 22, 2026 Sen. Wyden introduced the Congressional Trade Powers Reform Act, which would repeal Section 122 outright and require congressional approval for future actions of this kind.
Didn't a court already strike Section 122 down?
The U.S. Court of International Trade held 2-1 on May 7, 2026 that the surcharge exceeded the President's statutory authority — but relief was limited to the three plaintiffs, the government appealed, and the Federal Circuit issued an administrative stay. CBP continued to collect the 10% from all other importers until the surcharge expired on July 24. Whether past payments become refundable depends on how the appeal ends.
Did import duties actually go down on July 24?
For most goods, yes — by exactly the 10 percentage points the surcharge added. Nothing replaced it at expiry: USTR's proposed replacement duties of 12.5% on 46 trading partners under Section 301 missed their July 20 completion deadline and remain pending. If that rule is finalized, duties on affected countries would rise again — track it before locking in landed-cost assumptions.
Can I get a refund of Section 122 duties I already paid?
Not automatically. If the courts ultimately rule the surcharge unlawful after appeals conclude, refund procedures could follow for entries that remain open — which is why keeping entry records and considering protest deadlines matters. This is not legal advice; consult a licensed customs broker or trade attorney about your entries.
Does the Section 122 expiry change Section 301 or Section 232 duties?
No. China Section 301 duties (7.5–25% depending on list) and Section 232 duties on metals, derivatives, covered equipment, and autos are separate authorities and continue unchanged. Goods covered by Section 232 never paid Section 122 on top — the two do not stack.
Did the de minimis exemption come back on July 24?
No. The elimination of the $800 de minimis threshold is a separate measure and was not affected by the Section 122 sunset. Low-value parcels continue to face formal duty collection.
Sources
- Federal Register — Section 122 proclamation and notices
- U.S. Court of International Trade — May 7, 2026 opinion
- USTR — Section 301 replacement proposal and hearing docket
- Skadden — analysis of the CIT ruling and stay
- Holland & Knight — Section 122 invalidation analysis
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