Tariff Changes Taking Effect February 24

What the Supreme Court Decision Changed

On February 20, the U.S. Supreme Court struck down the Trump administration’s use of tariffs under the International Emergency Economic Powers Act (IEEPA). As a result, President Trump signed an Executive Order titled “Ending Certain Tariff Actions,” directing the immediate termination of these tariffs. Consequently, CBP stopped collecting these duties on all goods entered for consumption on or after 12:00 a.m. ET on February 24, 2026.

Section 122 Import Surcharge — What It Covers

Also on February 20, President Trump signed a Proclamation invoking Section 122 of the Trade Act of 1974. This action imposed a temporary 10% ad valorem import duty on most goods entering the United States, effective February 24 at 12:01 a.m. ET. The surcharge runs for 150 days. Importantly, this 10% is in addition to the standard published duty rate for each commodity.

In addition, over the weekend the President announced on social media that he would raise the rate from 10% to 15% — the maximum under Section 122. However, that increase has not yet officially taken effect.

Key Exclusions from the Section 122 Duty

Notably, several categories are exempt from the Section 122 surcharge:

• Certain critical minerals, metals, energy, and energy products
• Natural resources and fertilizers not producible domestically in sufficient quantities
• Certain agricultural products (beef, tomatoes, oranges)
• Pharmaceuticals and pharmaceutical ingredients
• Certain electronics
• Passenger vehicles, certain trucks, buses, and certain vehicle parts
• Certain aerospace products
• Informational materials (e.g., books), donations, and accompanied baggage
• All goods subject to Section 232 actions
• USMCA-compliant goods of Canada and Mexico
• Certain CAFTA-DR textile and apparel goods

Where Do IEEPA Refunds Stand?

Despite the Court’s ruling, importers should not expect automatic refunds. The Supreme Court did not address the question of refunds in its decision. Here is what we know at this time:

• No new developments have emerged regarding potential tariff refunds
• The Court has not established a timing or mechanism for processing any refunds
• The government may appeal any future Court decision, which could result in lengthy and uncertain litigation

As always, American Cargoservice is committed to keeping our customers informed. We will continue to monitor the situation and send updates as they become available.

Questions about how these changes affect your shipments? Contact ACS at info@acssan.com or (858) 565-4125.