The 10% universal import surcharge took effect on February 24, 2026 and applies to virtually every product entering the United States. Here is what you need to know.
Section 122 of the Trade Act of 1974 gives the President authority to impose temporary import restrictions when the US faces large or serious balance-of-payments deficits. Unlike Section 301 (which targets specific countries) or Section 232 (which targets specific industries), Section 122 applies universally across all trading partners and product categories. The surcharge is capped at 15% and limited to 150 days, making it a blunt but temporary trade tool. The current 10% invocation marks only the second time this authority has been used since the Trade Act was passed.
The 10% surcharge applies on top of all existing tariffs, which means the effective tax on Chinese goods has reached 40-45% for many product categories. Even goods from allied nations with no previous tariffs now face the 10% floor. For an importer bringing in $1 million in goods monthly, this translates to $100,000 in additional costs. The stacking effect is particularly severe for products already subject to Section 301 or Section 232 tariffs.
The Section 122 surcharge is legally required to expire by July 24, 2026. However, importers should not assume costs will simply revert. The administration has signaled that permanent tariff restructuring may replace the temporary surcharge. Smart importers are using this window to diversify their supply chains and renegotiate supplier contracts rather than waiting out the 150-day period.
Section 122 of the Trade Act of 1974 authorizes the President to impose temporary import surcharges of up to 15% for a maximum of 150 days to address balance-of-payments deficits. On February 24, 2026, a 10% universal surcharge was applied to virtually all imports entering the United States.
The Section 122 authority limits surcharges to 150 days. The current 10% surcharge took effect February 24, 2026 and is set to expire on July 24, 2026. However, the administration could invoke other authorities to extend or replace it.
Yes, the 10% surcharge is additive. If a product from China already faces a 30% tariff rate, the total effective tariff becomes 40%. This stacking applies to all country-specific and product-specific tariffs already in place.
Very few products are fully exempt. Goods covered by existing free trade agreements like USMCA may have partial exemptions if they meet rules of origin requirements. Critical minerals and certain pharmaceutical ingredients have also received narrow exemptions through executive action.
Small importers are disproportionately affected because they have less negotiating power with suppliers and thinner margins to absorb the additional 10%. Combined with the de minimis elimination, small e-commerce sellers importing products under $800 now face duties for the first time on top of this surcharge.
See exactly how the 10% universal surcharge affects your product costs and margins with MarginHub's real-time calculator.
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