When Did Section 122 Expire? July 24, 2026 Importer Guide

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 had 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 invoked Section 122 to impose a 10% global import surcharge effective February 24, 2026.

The 150-day maximum was a hard statutory cap — it could not be extended by presidential proclamation or executive order, and only Congress could have extended it. No extension bill was introduced. Section 122 expired automatically and on schedule at 12:01 AM EDT on July 24, 2026.

On July 23, 2026, President Trump signed a memorandum directing USTR to impose new Section 301 tariffs of 10% or 12.5% on imports from 60 countries — covering roughly 99.4% of all U.S. imports — based on a forced-labor enforcement investigation USTR concluded in June. The new duties took effect at 12:01 AM EDT on July 24, the same instant Section 122 lapsed, closing what could otherwise have been a duty-free gap. USMCA-qualifying goods (Canada, Mexico) and CAFTA-DR textile/apparel goods are exempt, along with additional HTS subheadings added after public comment. A patented pharmaceutical article exemption took effect July 31, 2026. Five economies (EU, Taiwan, Japan, South Korea, Switzerland) receive combined net-of-MFN rates capped at 10% or 12.5%. The in-transit grace period covering goods loaded before the cutoff and entered by July 28, 2026 has now closed. The new Section 301 duties do not stack with Section 232 tariffs (steel, aluminum, copper, autos), which continue separately. Brazil separately received its own distinct 25% Section 301 tariff effective July 22, 2026 — not part of the 60-country action. Unlike Section 122, Section 301 has no statutory rate cap and no fixed expiration.

Section 122, Section 301, 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 and Section 301 duties are NOT refundable through CAPE. A separate legal challenge to Section 122's use remains open; if it is ultimately resolved in importers' favor, Section 122 duties paid between February 24 and July 24, 2026 could become separately refundable — but that process would be independent of IEEPA CAPE filings.

Confirm whether your HTS codes and origin countries fall under the new Section 301 action, and at which rate (10% or 12.5%) — the exemption structure (USMCA, CAFTA-DR, the additional excluded HTS subheadings, and the new pharmaceutical exemption effective July 31) differs from Section 122's. The in-transit grace period for goods loaded before July 24 and entered by July 28 has now closed. Keep separate records of Section 122 duties paid between February 24 and July 24, 2026 in case the pending legal challenge to Section 122 opens a distinct refund path. Do not confuse Section 122 or Section 301 duty payments with IEEPA duty refunds — they are separate tracks.