WASHINGTON — A temporary U.S. global import surcharge imposed under Section 122 of the Trade Act of 1974 is scheduled to expire later this month, creating a key deadline for importers and the Trump administration as businesses await confirmation of whether other trade measures will replace the levy.
The Section 122 surcharge, which took effect on Feb. 24, is subject to a statutory 150-day limit and is due to lapse on July 24 unless Congress authorizes further action or the administration relies on a separate legal authority for future tariffs. Trade specialists and legal analysts say the expiration occurs automatically under the statute.
The tariff was introduced after the administration turned to Section 122 following a U.S. Supreme Court ruling that invalidated broader tariffs imposed under the International Emergency Economic Powers Act. The measure applied a temporary 10% surcharge to most imports, while goods qualifying under the U.S.-Mexico-Canada Agreement and certain products already covered by Section 232 duties remained exempt, according to the Federal Register and trade guidance.
Businesses have been preparing for several possible outcomes, including the surcharge expiring as scheduled, replacement tariffs under other provisions of U.S. trade law, or further legal developments. The administration has indicated in previous court filings and public statements that it could pursue longer-term trade measures through authorities such as Sections 232 or 301 of U.S. trade law rather than rely on Section 122 alone.
The Section 122 tariffs have also faced legal challenges. In May, the U.S. Court of International Trade ruled that the administration's use of Section 122 was unlawful in a case brought by several plaintiffs, but limited relief to those parties while allowing the tariffs to remain in effect for other importers during the appeals process. The administration appealed the decision, leaving the duties in place pending further judicial review.
Trade groups, customs brokers and import-dependent businesses have said the approaching expiration has complicated pricing, inventory management and contract negotiations because companies remain uncertain about the tariff regime that will apply after July 24. Analysts note that any replacement measures would require separate legal authority and procedures rather than an extension of the existing Section 122 action.
As of July 2, no legislation extending the Section 122 surcharge had been enacted, and the statutory expiration date later this month remained unchanged.
