On February 20, 2026, President Trump signed an Executive Order revoking the tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). He then issued a Proclamation imposing a 10% tariff on all imports (with limited exceptions) under Section 122 of the 1974 Trade Act.
On February 21, 2026, President Trump indicated he would increase the tariff to 15%; however, as of the time of this update, no Presidential action revising the 10% rate has been published. The new 10% tariff will be effective on February 24, 2026, for 150 days.
There is an in-transit exception for goods subject to the new Section 122 tariff. This exception applies to goods that were loaded onto a vessel at the port of loading and were in transit via the final mode of transport prior to entry into the United States before 12:01 AM ET on February 24, 2026, and were entered for consumption or withdrawn from a warehouse for consumption prior to February 28, 2026.
The new Section 122 tariffs will not apply to goods entered under the United States-Mexico Canada Agreement (“USMCA”); nor will the tariffs apply in addition to Section 232 tariffs. However, the Proclamation clarifies that Section 122 tariffs will apply to portions of derivatives not subject to Section 232 tariffs.
Additionally, President Trump announced that the tariffs under Section 232 and Section 301 continue to be effective, and that the Administration will pursue additional investigations under Section 301.
Finally, although duties will no longer be collected pursuant to IEEPA, the President may use IEEPA for other measures to control trade, such as the suspension of the de minimis exception.
We will continue to monitor these developments as they progress. If you have questions concerning how these developments may affect your imports or pending litigation we initiated on your behalf, please contact one of the trade professionals listed here.
President Trump Invokes Section 122 & Imposes 15% Tariff