{"id":9334,"date":"2026-07-10T14:00:00","date_gmt":"2026-07-10T18:00:00","guid":{"rendered":"https:\/\/www.customscourt.com\/?p=9334"},"modified":"2026-07-08T14:19:09","modified_gmt":"2026-07-08T18:19:09","slug":"section-122-tariffs-update","status":"publish","type":"post","link":"https:\/\/www.customscourt.com\/es\/section-122-tariffs-update\/","title":{"rendered":"Section 122 Tariffs Update"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Following the U.S. Supreme Court\u2019s landmark decision in <em>Learning Resources, Inc. v. Trump<\/em>, which struck down the previous tariff regime imposed under the International Emergency Economic Powers Act (IEEPA), the Administration responded immediately. Signaling that its overarching trade policy remains unchanged, the White House has invoked Section 122 of the Trade Act of 1974 to implement a new 10% global tariff on all imports entering the United States, subject to specific exemptions. Section 122 serves as a temporary, 150-day stopgap measure while the Administration prepares more permanent trade enforcement mechanisms. For importers, this transition introduces a new set of compliance rules, strict time limitations, and a vital window for strategic supply chain planning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike IEEPA, Section 122 explicitly grants the Executive Branch tariff authority to address severe macroeconomic imbalances. The Administration justified the measure by citing fundamental international payment problems, including a $1.2 trillion annual goods trade deficit and a heavily negative net international-investment position. However, Section 122 carries several clear statutory guardrails that differ vastly from the invalidated IEEPA tariffs. These include a strict 150-day clock, a 15% rate cap, and global, uniform application. These new tariffs took effect on February 24, 2026, and are legally scheduled to expire on July 24, 2026, unless Congress explicitly votes to extend them. While previous IEEPA duties on certain imports reached as high as 145%, Section 122 strictly caps temporary import surcharges at 15% ad valorem. The Administration has set the baseline rate for this action at 10%. By law, Section 122 cannot target individual countries. It must be applied globally and uniformly, except where the President carves out specific product exclusions to protect the domestic economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To prevent compounding economic pressure on critical industries, the new Proclamation establishes that Section 122 tariffs will not stack on top of existing Section 232 national security tariffs. Products already subject to Section 232 duties (such as certain steel, aluminum, and automotive imports) are entirely excluded from this additional 10% surcharge. Furthermore, the Administration has issued an extensive list of exemptions that largely mirror the exclusions from the previous IEEPA regime. These key exempted categories include: goods in transit prior to the February 24, 2026 effective date; products from Canada and Mexico covered under the USMCA; pharmaceuticals, active pharmaceutical ingredients, and critical electronics; energy products and certain critical minerals; essential agricultural products (including beef, tomatoes, and oranges); and aerospace products and passenger vehicles already governed by Section 232. By maintaining these specific carve-outs, the Administration is attempting to preserve the overall economic framework of its prior tariff program while shifting to a firmer statutory foundation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because Section 122 automatically expires in July unless Congress intervenes, the Administration has laid the groundwork for follow-up trade actions under Section 232 (national security) and Section 301 (unfair trade practices). Unlike the rapid implementation seen with IEEPA or Section 122, these statutes require rigorous, formal investigative processes. Section 232 actions require a formal investigation and report by the U.S. Department of Commerce. Section 301 actions require the Office of the U.S. Trade Representative (USTR) to compile an extensive administrative record, providing the public with formal notices and opportunities to comment. Because any future long-term tariffs will depend heavily on the evidentiary records built during these upcoming investigations, the compliance and legal strategies that importers deploy right now will be critical.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The implementation of Section 122, combined with Section 232 and 301 investigations, means it is recommended that importers take proactive steps to protect their bottom lines. These steps include auditing HTSUS Classifications, leveraging duty-mitigation programs, reviewing supply and pricing agreements, and building the administrative record. With a global 10% tariff in play, ensuring your Harmonized Tariff Schedule of the United States (HTSUS) classifications are entirely accurate is your first line of defense. A minor classification error could mistakenly subject an exempted product to the new surcharge. Next, evaluate whether your supply chain can utilize Foreign Trade Zones (FTZs), bonded warehouses, or duty-drawback and duty-deferral programs to minimize immediate cash-flow burdens. Then, analyze your existing vendor and customer contracts. Ensure you clearly understand how unexpected tariff fluctuations, changes in Incoterms, and shifting import costs are allocated between parties. Importers should also actively participate in Department of Commerce and USTR public comment windows, either individually or through trade associations. Submitting empirical data regarding supply chain impacts is also important, not only to shape potential product exclusions but to preserve your legal standing should future judicial review become necessary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our customs law team can assist your business in reviewing HTS codes, evaluating supply chain duty-mitigation structures, and any other tariff questions. Contact us today to ensure your trade operations remain resilient through this transition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Disclaimer: \u201cThis briefing is provided for general informational purposes only and does not constitute legal advice. Please consult with qualified counsel for advice tailored to your specific trade profile.\u201d&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>Following the U.S. Supreme Court\u2019s landmark decision in Learning Resources, Inc. v. Trump, which struck down the previous tariff regime imposed under the International Emergency Economic Powers Act (IEEPA), the Administration responded immediately. Signaling that its overarching trade policy remains unchanged, the White House has invoked Section 122 of the Trade Act of 1974 to implement a new 10% global [&hellip;]<\/p>\n","protected":false},"author":51,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-9334","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/posts\/9334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/comments?post=9334"}],"version-history":[{"count":1,"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/posts\/9334\/revisions"}],"predecessor-version":[{"id":9336,"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/posts\/9334\/revisions\/9336"}],"wp:attachment":[{"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/media?parent=9334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/categories?post=9334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.customscourt.com\/es\/wp-json\/wp\/v2\/tags?post=9334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}