Section 122 Tariff Expires July 24, 2026: What Importers Pay After
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 expires at 12:01 a.m. EDT on July 24, 2026 — the 150-day maximum Section 122 allows without an Act of Congress.
- A federal trade court already ruled it unlawful on May 7, but an appeals-court stay means CBP is still collecting it from everyone except the three plaintiffs.
- Congress is not expected to extend it.
- The catch: USTR is proposing Section 301 replacement duties of 10–12.5% on dozens of trading partners — 76 determinations were expected to conclude before the sunset.
- If the expiry is clean, duty on most goods drops 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 24, 2026Surcharge expires at 12:01 a.m. EDT — the 150-day statutory maximum — unless Congress extends it.
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 if the surcharge expires cleanly. Rates are origin-neutral: China-origin goods add Section 301 duties of 7.5–25% on top of every column, and those do 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 | Today (with S.122) | After Jul 24 |
|---|---|---|---|---|
| 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%
Today 20% → After Jul 24 10%
Laptops
HTS 8471.30.01 · MFN 0%
Today 10% → After Jul 24 0%
Cotton T-shirts
HTS 6109.10.00 · MFN 16.5%
Today 26.5% → After Jul 24 16.5%
Toys & wheeled toys
HTS 9503.00.00 · MFN 0%
Today 10% → After Jul 24 0%
Wooden furniture
HTS 9403.60.80 · MFN 0%
Today 10% → After Jul 24 0%
Bicycles (wheels ≤ 63.5 cm)
HTS 8712.00.15 · MFN 11%
Today 21% → After Jul 24 11%
Wood-platform leather footwear
HTS 6403.99.20 · MFN 8%
Today 18% → After Jul 24 8%
Backpacks (man-made fibers)
HTS 4202.92.31 · MFN 17.6%
Today 27.6% → After Jul 24 17.6%
Coffee makers
HTS 8516.71.00 · MFN 3.7%
Today 13.7% → After Jul 24 3.7%
Plastic plates & tableware
HTS 3924.10.20 · MFN 6.5%
Today 16.5% → After Jul 24 6.5%
Estimates only, for planning purposes — actual duty depends on classification, origin, valuation, and entry date. Not legal or customs advice.
Three ways July 24 can play out
A. Clean expiry (the table above)
Congress does nothing, no replacement lands 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 — go back to duty-free from most origins.
B. Section 301 replacement lands
USTR's June 2 proposal would impose 10–12.5% on imports from dozens of trading partners under a different legal authority — one that is country-specific and not time-capped at 150 days. For affected countries the net change on July 24 could be roughly zero to +2.5 points, and the new duties would be harder to challenge on the grounds that sank Section 122.
C. The courts finish the job
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 this week
- Check your entry timing. Duty is assessed on the entry date. Where commercially and legally sensible, shipments that can enter on or after July 24 avoid the surcharge entirely.
- 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 on July 24. A 10-point duty change moves margins; re-quote anything priced off pre-expiry duty.
Re-run your landed cost for after July 24
Model your product's duty, freight, and tax with the surcharge removed — free, no signup.
Want the full duty stack for your product — MFN, Section 301, Section 232, and the surcharge while it lasts? Use the 2026 Tariff Impact Calculator.
Get an email when US tariff rates change
One email when something real changes — like this expiry, or the Section 301 replacement landing. No spam.
We email at most once a month. By subscribing you agree to our privacy policy.
Frequently Asked Questions
When exactly does 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 has been passed.
Can Congress extend the Section 122 surcharge?
Legally yes — the 150-day cap can only be extended by an Act of Congress. As of late July 2026 no extension bill has advanced, and trade-law analysts widely consider an extension unlikely. If that changes before July 24, this page will be updated.
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 has continued to collect the 10% from all other importers during the appeal.
Will import duties actually go down after July 24?
For most goods, yes — by exactly the 10 percentage points the surcharge added, if nothing replaces it. But USTR has proposed replacement duties of 10–12.5% on dozens of trading partners under Section 301, with 76 determinations expected around the same date. Country-by-country outcomes may differ from the clean-expiry scenario in our table.
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.
Does the de minimis exemption come back on July 24?
No. The elimination of the $800 de minimis threshold is a separate measure and is 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
Keep reading
Monthly tariff & freight cost update
One short email a month: the duty, tariff, and freight changes that actually affect cross-border shippers. No spam, unsubscribe in one click.
We email at most once a month. By subscribing you agree to our privacy policy.