On July 24, 2026, the 10% Section 122 global surcharge on all imports expires — but this is not a tariff reduction. The USTR is racing to replace it with permanent Section 301 tariffs across 60+ countries, with rates expected to rise from 10% to 12.5% or higher. For importers using DDP terms, this is the moment to recalculate your entire landed cost model.
Key Facts
| Item | Details |
|---|---|
| Expiration | July 24, 2026 — Day 150 of Section 122 authority |
| Current Rate | 10% on virtually all imports (effective Feb 24, 2026) |
| Replacement | New Section 301 all-country tariffs, expected 10%-12.5%+ |
| Legal Status | CIT ruled Section 122 unconstitutional; appeals court allows continued collection |
Timeline
- February 2026: SCOTUS strikes down IEEPA tariffs. President invokes Section 122 for 10% global surcharge.
- March 2026: CIT rules Section 122 unconstitutional, stayed on appeal.
- March-July 2026: USTR launches 76 Section 301 investigations covering 60+ countries.
- July 24, 2026: Section 122 expires. New all-country Section 301 tariffs take effect.
DDP Rate Impact
For a typical China-origin electronics product (MFN 3%, Section 301 China 25%):
- Current: 3% + 25% + 10% = 38% composite rate
- After July 24 (12.5% new rate): 3% + 25% + 12.5% = 40.5%
- If new rate hits 15%: 3% + 25% + 15% = 43%
Action Checklist
- Recalculate composite rates now under 10%/12.5%/15% scenarios.
- Update all DDP quotations with tariff-adjustment clauses from July 15.
- Audit country of origin — assess whether origin changes can reduce applicable rates.
- Track USTR’s 76 investigations for sector-specific findings relevant to your products.
- Time your shipments: cargo clearing before vs. after July 24 faces different duty rates.
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