USMCA Archives - American Cargoservice

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.

Tariff Updates February 2026

There have been many changes to import tariffs since we last reported on this in October.

Here are some of the recent highlights:

INDIA Effective February 7 the additional 25% “Russian Oil” Tariff has been removed. The 25% “reciprocal” tariff will be reduced to 18% (effective date for that TBD)

SWITZERLAND A framework for a trade deal was announced on November 15, 2025 to reduce the 39% “reciprocal” tariff rate to 15%, the same as that of the EU.

ARGENTINA A trade deal was announced on February 15 that will reduce or eliminate reciprocal tariffs on certain goods and reduce the rate for other goods to 10% (effective date TBD)

BANGLADESH A trade deal was announced on Feb. 9 that will remove reciprocal tariffs from some goods and reduce rates on other goods from 20% to “no higher than 19%”.

CANADA Goods eligible for USMCA are still duty free. Rates for other goods range from 10% to 35%. Various other additional tariffs have been threatened this year, ranging from 50% to 100%, but have not been implemented.

TAIWAN A trade deal was announced on Feb. 12 that will reduce tariff rates from 20% to 0 for certain goods and 15% for other goods.

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