The President invoked Section 122 of the Trade Act of 1974 on February 24, 2026, imposing a 15% global tariff surcharge on virtually all imports. This tool determines whether your specific shipment qualifies for an exemption—before your customs broker bills you.
FTA exemption check for USMCA, Australia, South Korea, and 17 other FTA partners
De minimis & personal use thresholds evaluated automatically
Surcharge dollar amount calculated from your shipment value
Required documentation checklist if you are claiming an exemption
Enter shipment details for an instant exemption analysis
Section 122 of the Trade Act of 1974 grants the President emergency authority to impose additional tariffs of up to 15% ad valorem on all imports when the US is running a significant balance of payments deficit. Unlike Section 301 (which targets unfair trade practices) or Section 232 (national security), Section 122 is a broad macroeconomic tool that can be applied to virtually every country and product simultaneously—with no Congressional vote required. The authority is time-limited to 150 days without Congressional renewal.
The current action is the first invocation of Section 122 authority in modern trade history. Key milestones:
Treasury and USTR begin formal balance of payments review, concluding the US current account deficit justifies emergency action under Section 122.
Executive order invoking Section 122 authority signed, specifying 15% surcharge rate, February 24 effective date, and initial FTA exemption categories.
The 15% ad valorem surcharge becomes effective on all covered imports. Goods entered under bond before this date are not subject to the additional duty.
USTR opens exclusion petition process for specific HTS categories. Industry groups and individual importers may file petitions demonstrating economic hardship.
Section 122 authority expires automatically after 150 days unless Congress passes a joint resolution authorizing continuation. If renewed, the surcharge could remain indefinitely.
There is a non-trivial probability that Congress authorizes an extension beyond July 24, 2026. Importers should not assume automatic expiry and should build contingency plans for a prolonged surcharge period.
The proclamation provides a pathway to exemption for FTA partner countries, but exemption is not automatic. Goods must satisfy applicable rules of origin, and the importer must make a valid FTA claim at the time of entry. The following table summarizes major trading partners:
| Country | FTA Status | Section 122 Impact | Key Requirements |
|---|---|---|---|
| Canada | USMCA | Likely Exempt | USMCA certification + rules of origin met |
| Mexico | USMCA | Conditionally Exempt | USMCA certification required; non-originating goods subject |
| Australia | AUSFTA | Likely Exempt | AUSFTA certificate of origin, rules of origin |
| South Korea | KORUS | Likely Exempt | KORUS certification, originating goods only |
| Singapore | SFTA | Likely Exempt | SFTA certification required |
| CAFTA-DR countries | CAFTA-DR | Conditionally Exempt | CAFTA certification; textile rules strictly enforced |
| Israel | US-Israel FTA | Likely Exempt | Certificate of origin, qualifying products only |
| China | None | Subject +15% | No exemption pathway for commercial goods |
| Japan | None | Subject +15% | No US-Japan FTA in force |
| Germany / EU | None | Subject +15% | No US-EU FTA; surcharge applies |
| Vietnam | None | Subject +15% | IPEF does not confer tariff preferences |
| India | None (GSP suspended) | Subject +15% | GSP not restored; full surcharge applies |
| Taiwan | None (TIFA only) | Subject +15% | TIFA is a framework, not an FTA |
| United Kingdom | None | Subject +15% | Post-Brexit US-UK deal not concluded |
Informal entries under the $800 de minimis threshold (19 U.S.C. § 1321) are generally exempt from Section 122 duties, provided the goods are not commercial in nature. Note: China-origin goods have separate de minimis restrictions under executive orders effective May 2, 2025—verify current eligibility before relying on this exemption.
Section 122 is an ad valorem duty, calculated as a percentage of the customs value of the goods. It stacks on top of all other applicable duties—MFN base rates, Section 301, Section 232, and antidumping/CVD orders.
Section 122 stacks with Section 301 duties, Section 232 duties (steel/aluminum/autos), and antidumping and countervailing duty orders. For Chinese steel products, total duty exposure can exceed 50–100% of customs value when all applicable layers are combined.
If your goods qualify for a Section 122 exemption, you must be prepared to substantiate the claim at entry. CBP may request documentation during examination or post-entry audit. Retain all records for a minimum of 5 years.
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