Direct Answer
Section 122 of the Trade Act of 1974 expires on July 24, 2026 at 12:01 AM EDT. The statute limits emergency import surcharges to 150 days maximum. The 10% global surcharge took effect February 24, 2026 — making July 24 the hard deadline. Congress cannot extend it by executive action alone.
The Supreme Court’s February 20, 2026 ruling in Learning Resources v. Trump opened $166 billion in IEEPA refunds for 330,000 importers of record (the IOR named on CBP Form 7501) across 53 million entry summaries. As of June 29, 2026, $71.06 billion has been certified and sent to Treasury through CBP’s CAPE system in the ACE Secure Data Portal (Phase 1, Phase 2, and Phase 3), with statutory interest accruing at approximately $650 million per month under 19 U.S.C. § 1505.
Section 122 Expiration — July 24, 2026
When does Section 122 expire?
Step 1
What Is Section 122?
Section 122 of the Trade Act of 1974 gives the President authority to impose a temporary import surcharge of up to 15% for up to 150 days to address a fundamental international payments problem. It has rarely been used — the last invocation before 2026 was by President Nixon in 1971. After the Supreme Court struck down IEEPA tariffs on February 20, 2026, President Trump immediately invoked Section 122 to impose a 10% global import surcharge effective February 24, 2026.
Step 2
Why July 24, 2026 Is a Hard Deadline
The 150-day maximum is a hard statutory cap — it cannot be extended by presidential proclamation or executive order. Only Congress can extend Section 122 authority. Without a new act of Congress, the 10% surcharge expires automatically at 12:01 AM EDT on July 24, 2026. No bipartisan extension bill has been introduced as of July 10, 2026.
Step 3
What May Replace Section 122
USTR has proposed Section 301 duties at 12.5% on 46 countries, with a July 20, 2026 completion deadline and a public hearing concluded July 7, 2026. Unlike Section 122, Section 301 has no statutory rate cap and no fixed expiration — it can remain in effect indefinitely if maintained. Pharma Section 232 takes effect July 31, 2026. These are targeted sector replacements, not a flat global surcharge.
Step 4
How Section 122 Differs From IEEPA
Section 122 and IEEPA are entirely separate statutes, with separate duty streams, separate refund processes, and separate court proceedings. IEEPA duties are refundable through CBP's CAPE system — the Supreme Court ruling made them unlawful. Section 122 duties are NOT refundable through CAPE. If the CIT's May 7 ruling against Section 122 is ultimately upheld by the Federal Circuit, Section 122 duties would become separately refundable — but that process would be independent of IEEPA CAPE filings.
Step 5
What Importers Should Do Before July 24
Model your post-July 24 landed cost under all three scenarios: Section 301 in place (country-specific rates replace flat 10%), Section 122 lapses with no replacement (10% disappears on covered goods), or Congressional extension (10% continues). Check whether your HTS codes and origin countries are covered by USTR's proposed Section 301 annexes — the exemption structure differs from Section 122. Do not confuse Section 122 duty payments with IEEPA duty refunds — they are separate tracks.
Common Questions
Frequently Asked Questions
Can the President extend Section 122 beyond July 24?
No. Section 122 caps emergency surcharges at 150 days by statute. Only Congress can extend it. The President can invoke different tariff authority (Section 301, Section 232) before or after July 24, but cannot extend Section 122 unilaterally.
Does Section 122 expiration affect my IEEPA refund?
No. IEEPA tariff refunds and Section 122 duties are entirely separate. The CAPE system processes IEEPA refunds only. Section 122 expiration has no effect on your IEEPA CAPE filing or refund timeline.
What is the Section 301 replacement rate?
USTR has proposed 12.5% Section 301 duties on 46 countries as a replacement mechanism. Final rates have not been confirmed as of July 10, 2026. The July 20 completion deadline and July 7 public hearing suggest rates could be announced before Section 122 expires.
Could Section 122 duties become refundable?
Possibly, if the Federal Circuit upholds the CIT's May 7 ruling that Section 122 was unlawfully invoked. The Federal Circuit issued a stay on June 11, 2026, so CBP continues collecting. If the stay is lifted and Section 122 is struck down, a separate refund process would open — independent of IEEPA CAPE.
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Note: Section 122 duties are not IEEPA duties and are not refundable through CAPE. Do not include Section 122 entries in your CAPE Declaration. Maintain separate records of Section 122 duty payments in case a future refund process opens.
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Informational only. Not legal, tax, or financial advice. The Tariff Bureau LLC is not a law firm, is not a licensed customs broker, and is not affiliated with CBP or any U.S. government agency. The IEEPA statute of limitations accrual date remains legally unsettled. Consult qualified trade counsel for your specific situation.