A new tariff on most goods imported into the United States took effect on February 24, 2026, at 12:01 a.m. ET. The tariff was initially set at 10% but was raised to 15%, the legal maximum, just two days later. It applies to products from every country and is expected to remain in place for 150 days, expiring July 24, 2026, unless Congress votes to extend it.
The tariff was imposed under Section 122 of the Trade Act of 1974, a statute that lets the president impose temporary import surcharges to address balance-of-payments deficits. It replaced the IEEPA-based tariffs that the Supreme Court struck down on February 20 in a 6-3 ruling, holding that the International Emergency Economic Powers Act does not give the president the power to set tariffs.
President Trump issued the replacement proclamation the same day the court ruled. U.S. Customs and Border Protection confirmed the switch with guidance on February 22 and 23, stopping collection of IEEPA duties and activating the new Section 122 surcharge.
Not everything is subject to the new tariff. Goods that qualify under the USMCA trade agreement with Canada and Mexico are exempt, as are products already covered by Section 232 tariffs like steel, aluminum, copper, and automobiles. Other exemptions cover critical minerals, pharmaceuticals, certain electronics, energy products, and textiles entering under the CAFTA-DR agreement. A limited carve-out also applies to goods already loaded onto a vessel and in transit before February 24, as long as they entered the U.S. before February 28.
For small businesses that import products, the 15% surcharge adds a real cost on top of existing duties. According to Global Trade Alert, the trade-weighted average U.S. tariff rate now stands at 13.2%, up from 8.3% after the IEEPA tariffs were struck down. Businesses should check whether their specific products fall under an exemption and adjust landed-cost calculations and pricing accordingly.
One practical concern right now is that CBP systems are still being updated. Some entries may initially reflect old IEEPA-based calculations and could require post-entry corrections. Importers should work with their customs brokers to confirm filings are accurate.
The administration has signaled that this 150-day tariff is a bridge, not an endpoint. The White House has directed the U.S. Trade Representative to launch new investigations under Section 301, which could lead to longer-lasting, product- or country-specific tariffs before the Section 122 window closes in late July.
