The 10% global surcharge that has been added to nearly every import since February 2026 disappears on July 24 — and the importers who plan for that date will keep cash that everyone else leaves on the dock.
Section 122 of the Trade Act of 1974 lets the president impose a temporary, across-the-board surcharge to address a balance-of-payments issue, for up to 150 days without a new act of Congress. The current surcharge, invoked in late February 2026, hit the 150-day limit on July 24, 2026. After that, the rate reverts unless Congress extends it, which would require new legislation.
For a small importer — a retailer, a maker who imports components, or an e-commerce seller who lands two containers a month — the sunset is a cash flow and compliance event that lands mid-year, mid-inventory cycle, and mid-forecast.
What Expires and What Does Not
Expires July 24: The Section 122 global surcharge itself, typically 10% ad valorem on the entered value, applied broadly across chapters, with limited exclusions for certain humanitarian and pre-existing preference items.
Does not expire: Section 301 duties on China-origin goods, Section 232 duties on steel and aluminum, antidumping and countervailing duties, and any product-specific exclusions you already claim. The base tariff landscape after July 24 is the same as before February, not zero.
Before July 24: Accelerate or Hold?
Accelerate: If you can enter goods before July 24 and the surcharge is the marginal cost, earlier entry saves 10%. But don't pay more in air freight, demurrage, or warehouse to save 10% if the net cost is higher. Model landed cost both ways.
Hold: If your supplier can ship so arrival and entry fall after July 24, you avoid the surcharge without paying to accelerate. That works for replenishment stock, not for a stockout that costs a lost sale.
Document the entry date: CBP uses the entry date, not the bill of lading date. A shipment that sails July 18 and enters July 25 is not surcharged; one that enters July 23 is. Keep the 7501.
After July 24: Refunds and CAPE
If you believe you overpaid the Section 122 surcharge — for example, you claimed an exclusion that CBP did not apply — the mechanism is the CBP CAPE (Customs Automated Portal for Entry) protest and refund path. File a protest under 19 USC 1514 within 180 days of liquidation, with the HTS, value, and surcharge calculation.
Bookkeeping: Record the surcharge as part of inventory cost (landed cost), not as a period expense, until the goods are sold. If a refund is received later, it reduces inventory cost or creates a recovery gain depending on whether the inventory is still on hand or already sold.
