A 15% global import surcharge under Section 122 of the Trade Act of 1974 took effect February 24, 2026, replacing the invalidated IEEPA-based reciprocal tariffs just four days after the Supreme Court's 6-3 ruling in Learning Resources, Inc. v. Trump. For trade compliance engineering teams, this compressed timeline demands immediate attention to rate caching logic, duty calculation pipelines, and the new requirement to track potential refund claims against approximately $200 billion in IEEPA-collected duties now deemed unconstitutional.
The February 20, 2026 SCOTUS decision established that IEEPA does not grant presidential authority to impose tariffs, invoking the Major Questions Doctrine to affirm that Article I, Section 8 reserves taxing power to Congress. Within 24 hours, the administration pivoted to Section 122, initially proposing 10% before escalating to the statutory maximum of 15%. Systems that cached IEEPA-based rates must now invalidate those values and implement the flat 15% surcharge across all applicable HTS codes.
The transition creates a dual-track compliance burden. Active import transactions must apply the new 15% Section 122 rate, while historical entries dating back to early 2025 require flagging for potential refund eligibility. Treasury is currently processing claims from thousands of importers, though legal experts anticipate multi-year adjudication timelines. Engineering teams should implement data retention and audit trails sufficient to support refund documentation requirements.
The 150-day statutory limit on Section 122 surcharges means compliance systems must prepare for another rate regime change by late July 2026. The administration has signaled that formal Section 301 investigations are proceeding in parallel, targeting product-specific duties to replace the temporary surcharge. HTS classification accuracy becomes even more critical as these investigations will likely result in duty rates that vary significantly by tariff subheading.
Port authorities reported surge volumes ahead of the February 24 effective date as importers rushed to clear shipments under pre-surcharge rates. For teams managing landed cost calculations and customs brokerage integrations, entry date validation is now essential to apply correct duty treatment—IEEPA rates for entries before February 20 (subject to refund claims), a brief gap period, and Section 122 rates for entries on or after February 24.
TradeFacts.io has updated our HTS and Canadian Customs Tariff API to reflect the Section 122 surcharge implementation and IEEPA rate invalidation. Contact us at /contact.html to start a free 30-day trial and ensure your compliance systems accurately reflect the current duty regime.