Tariff Talk

Overnight, an anticipated new global tariff of 10% was implemented under Section 122 of the Trade Act for 150 days. This tariff replaces the IEEPA tariffs that were shut down by the Supreme Court just last week. There was speculation that the tariff would be set at 15%; however, there is no update or reference to a pending rate change. A second alert was received extending the suspension of the de minimis rule and confirming the applicability of the Section 122 tariff.

The new tariff does open a window for ocean freight already in transit, meaning that customs clearance submitted by the end of day Friday will be excluded from both reciprocal and Section 122 tariffs.

This represents a reduction for many countries, including China, which had two 10% tariffs under IEEPA. For the EU, this is a lower rate than the previous 15% but does not include the parameters that previously rolled the base duty and reciprocal together at 15%.

Exclusions from reciprocal tariffs do roll into the Section 122 tariffs, with newly assigned HTS numbers. Annex II appears to be the same list, along with an annex of agricultural items. Donations, informational material, USMCA, and relief when paying 232 tariffs do apply.

There is also a new exclusion for certain textiles and products from certain countries under the Dominican Republic Central America Free Trade Agreement.

This tariff expires on July 24, 2026, unless a vote in Congress extends it. Stay tuned to our alerts for any updates to these and all trade remedy tariffs.