Today is the day. At 12:01 AM EST on February 24, 2026, the most significant tariff transition in modern American trade history became official. Every IEEPA-based tariff — the reciprocal duties, the China surcharges, the Canada and Mexico additions — stopped being collected at midnight. In their place, a new 15% global tariff under Section 122 of the Trade Act of 1974 is now in force. If you import goods into the United States, this is your Day One briefing: what ended, what started, who is exempt, and what you need to do right now.

In This Briefing

72 Hours That Reshaped American Trade

The past four days have produced more consequential trade policy changes than most years produce in total. Here is the exact sequence of events that brought us to today:

1

February 20 — SCOTUS Rules 6-3: IEEPA Tariffs Unconstitutional

The United States Supreme Court, in a landmark 6-3 decision in Learning Resources v. Trump, ruled that the International Emergency Economic Powers Act does not grant the president authority to impose tariffs. The majority held that IEEPA's language authorizes the regulation, blocking, and freezing of financial transactions — but customs duties on imported goods are a function of trade law, not emergency economic powers. Every IEEPA-based tariff in effect was declared invalid. Global markets surged. Import-heavy stocks jumped. The dollar weakened against major currencies. Trade attorneys immediately began preparing refund claims for IEEPA duties already collected.

2

February 20 — White House Issues 10% Tariff Under Section 122

Within hours of the ruling, the administration pivoted to an alternative legal authority: Section 122 of the Trade Act of 1974. President Trump signed an executive order invoking Section 122 to impose a 10% temporary duty on imports, effective February 24, 2026. The order cited the U.S. trade deficit — which exceeded $1.1 trillion in 2025 — as justification under Section 122's balance-of-payments provision. Unlike IEEPA, Section 122 is explicitly a trade statute, making it a more defensible legal foundation.

3

February 21 — Rate Hiked from 10% to 15%

The following day, the administration raised the Section 122 rate to 15% — the statutory maximum permitted under the Trade Act of 1974. This applies to approximately $1.2 trillion in annual imports, covering roughly 34% of all goods entering the United States. The justification remained the same: large and serious balance-of-payments deficit. At 15%, Section 122 is now fully utilized to its legal ceiling.

4

February 23 — CBP Announces IEEPA Collections Stop at Midnight

Customs and Border Protection issued formal guidance that IEEPA-based duty collections would cease at midnight on February 23-24. Ports of entry received updated instructions. Importers who had been subject to dual-collection confusion in the days since the ruling — some ports were still collecting IEEPA duties despite the Court's order — received confirmation that the old regime was officially over.

5

February 24 — New Regime Takes Effect at 12:01 AM EST

Today. Right now. The 15% Section 122 global tariff is in force. The IEEPA tariffs are history. Every import entering the United States from this moment forward is subject to the new duty structure. The 150-day clock has started — this tariff expires around July 24, 2026 unless Congress passes legislation to extend or replace it.

Critical Timing: If you imported goods between February 20 and February 24 and were assessed IEEPA-based duties, you may have grounds to protest those assessments. CBP's initial response to the Supreme Court ruling was inconsistent across ports. Contact your customs broker or trade attorney immediately to review your entry documents from this window.

What Ends Today: All IEEPA Tariffs Void

As of 12:01 AM EST on February 24, 2026, every tariff that was imposed under IEEPA authority is no longer collected. The Supreme Court declared IEEPA an invalid legal basis for customs duties, and CBP has formally ceased collection. Here is what is gone:

Reciprocal Tariffs (Most Countries)

The broad "reciprocal" tariffs imposed on dozens of countries under IEEPA authority — which ranged from 10% to 50% depending on the country — are void. Countries in Europe, Asia, Africa, and South America that were subject to these duties are now free of them. The only tariff they face is the new 15% Section 122 global duty.

China-Specific IEEPA Surcharges

The IEEPA-based surcharges specifically targeting Chinese goods are eliminated. However, this does not mean Chinese imports are tariff-free — far from it. Section 301 tariffs, the fentanyl-related 10% tariff, and the new 15% global tariff all remain. See the China section below for the full layered picture.

Canada/Mexico IEEPA Additions

The IEEPA-based additions to Canadian and Mexican tariffs are gone. However, Canada's 35% country-specific rate and Mexico's 25% country-specific rate may still apply to non-USMCA goods under other legal authorities. USMCA-compliant imports remain exempt from the country-specific rates.

Trafficking & Immigration Tariffs

The tariffs that were imposed under IEEPA citing immigration enforcement and drug trafficking as national emergencies are void. The Court was clear: IEEPA does not authorize tariffs regardless of the emergency cited. The fentanyl-related tariff on China (10%) remains because it was imposed under a different legal authority.

What Starts Today: Section 122 at 15%

Replacing the IEEPA tariffs is a single, uniform duty imposed under Section 122 of the Trade Act of 1974. Here is what you need to know about the new regime:

Attribute Detail
Rate 15% (statutory maximum under Section 122)
Effective Date February 24, 2026 at 12:01 AM EST
Scope Approximately $1.2 trillion in annual imports (~34% of all goods entering the U.S.)
Duration 150 days maximum — expires ~July 24, 2026 unless Congress acts
Legal Basis Balance-of-payments justification (different from IEEPA's emergency powers)
Rate Ceiling 15% is the maximum — cannot be raised further without Congressional action
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Key Difference from IEEPA: Section 122 has a built-in 150-day expiration and a 15% rate ceiling. Under IEEPA, the administration could impose tariffs of any rate for an indefinite duration. Section 122 provides a more constrained legal framework — which is exactly why the Supreme Court pointed to it as the appropriate mechanism for trade-deficit-related duties. The trade-off for importers: more legal certainty, but a hard clock ticking toward July 24.

The balance-of-payments justification is significant. Under Section 122, the president can only impose temporary surcharges when the United States faces a "large and serious" balance-of-payments deficit. The administration's executive order cites the $1.1 trillion trade deficit in 2025 as the factual basis. Legal experts expect challenges, but Section 122 stands on firmer ground than IEEPA did for tariff purposes.

Key Exemptions Under Section 122

Not everything entering the United States faces the new 15% duty. The executive order includes a series of product-specific and trade-agreement-based exemptions that are critical for importers to understand. Here is the complete list:

USMCA-Compliant Goods (Canada/Mexico)

Goods that qualify under the United States-Mexico-Canada Agreement rules of origin are exempt from the 15% Section 122 duty. This is the most impactful exemption by volume. As of early 2026, approximately 89% of Canadian imports and a growing share of Mexican imports enter under USMCA claims. If you import from Canada or Mexico and are not currently claiming USMCA origin, this is the single most valuable action you can take today.

Pharmaceuticals & Medical Devices

Prescription drugs, active pharmaceutical ingredients (APIs), finished dosage forms, and FDA-regulated medical devices are exempt. This reflects the administration's stated priority to avoid disrupting the healthcare supply chain. Over-the-counter consumer health products may not qualify — check HTS classifications carefully.

Semiconductors & Electronic Components

Integrated circuits, processors, memory chips, and specified electronic components are exempt. The exemption aligns with the CHIPS Act priorities and the national interest in maintaining competitive semiconductor supply chains. Finished consumer electronics (phones, laptops, TVs) are not exempt — only the component-level inputs.

Critical Minerals & Copper

Rare earth elements, lithium, cobalt, nickel, copper ore, and other critical minerals designated under the Defense Production Act or the Inflation Reduction Act mineral lists are exempt. This protects supply chains for EV batteries, defense systems, and advanced manufacturing.

Agricultural Commodities (Raw/Minimally Processed)

Raw and minimally processed agricultural products — including grains, fresh fruits and vegetables, unprocessed meat, coffee beans, and cocoa — are exempt. Processed food products (packaged goods, prepared foods) are generally not exempt. The line between "minimally processed" and "processed" varies by product; consult your customs broker for specific HTS classifications.

Lumber & Forestry Products

Softwood lumber, hardwood lumber, plywood, and unfinished timber products are exempt. This reflects the construction industry's ongoing housing-supply concerns. Finished wood products (furniture, cabinetry) are not included in the exemption.

Energy Products

Crude oil, refined petroleum products, natural gas (LNG and pipeline), and uranium are exempt from the 15% duty. The energy exemption is broadly defined and covers the vast majority of energy imports by value. Petrochemical feedstocks may qualify depending on classification.

Products Under Separate Tariff Orders

Goods already subject to Section 232 tariffs (steel at 25%, aluminum at 25%) or Section 232 auto tariffs (25% on passenger vehicles and parts) are exempt from the additional 15% Section 122 duty. These products continue under their existing tariff regime — the new duty does not stack on top of Section 232.

Goods in Transit Before February 24

Goods loaded onto a vessel and physically in transit before 12:01 AM EST on February 24, 2026 are excluded from the new tariff, provided they are entered for consumption within the applicable deadline. See the detailed goods-in-transit section below.

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Full Exemption List Available: For a comprehensive, product-by-product breakdown of all exemptions with HTS code references, read our detailed companion article: Complete 2026 Tariff Exemption List: Which Products Are Exempt from the New 15% Import Duty.

The Goods in Transit Rule

This is one of the most critical provisions for importers with shipments currently on the water. The executive order establishing the Section 122 tariff includes a goods-in-transit exclusion that can save you 15% on incoming cargo — but only if you meet the requirements precisely.

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The Rule: Goods that were loaded onto a vessel and physically in transit before 12:01 AM EST on February 24, 2026, AND that are entered for consumption before the applicable deadline, are excluded from the new 15% Section 122 tariff. These goods are treated as if they arrived under the pre-February 24 regime.

What this means in practice:

  • Your ship must have departed before midnight: The goods must have been loaded and the vessel underway before the effective date. Goods loaded onto a vessel on February 24 or later do not qualify, regardless of when the purchase order was placed or when the goods arrived at the port of loading.
  • You must enter for consumption within the deadline: Simply arriving at a U.S. port is not enough. The goods must be formally entered for consumption through CBP within the timeframe specified in the executive order. Do not let goods sit in a bonded warehouse past this window.
  • Documentation is everything: Retain all bills of lading, shipping manifests, vessel departure records, and AIS tracking data. If CBP challenges your goods-in-transit claim, you will need to prove the vessel departure date and loading date conclusively.
  • Partial loads may qualify: If your container was loaded before the cutoff but shares a vessel with containers loaded after, your specific container may still qualify based on its loading date. Work with your freight forwarder to obtain container-level documentation.

If you have goods on the water right now, contact your customs broker today to verify the departure date and plan your entry filing strategy. The difference between entering one day inside versus one day outside the window is a 15% cost swing on your entire shipment.

The China Situation: Layered Tariffs Remain

If you import from China, the elimination of IEEPA tariffs does not mean your costs have dropped. The IEEPA-specific surcharges on Chinese goods are gone, but multiple other tariff layers remain in full force. Here is the current effective rate structure for Chinese imports:

Tariff Layer Rate Legal Authority Status
Section 301 (Product-Specific) 7.5% – 100% (varies) Trade Act of 1974, Section 301 Active — Not affected by SCOTUS ruling
Fentanyl-Related Tariff 10% Bilateral agreement (Nov 2025) Active — Reduced from 20% per agreement
Section 122 Global Tariff 15% Trade Act of 1974, Section 122 Active as of Feb 24 — 150-day limit
IEEPA Surcharges 0% (eliminated) IEEPA (struck down) Void — Per SCOTUS ruling

The bottom line: depending on the product, Chinese goods face effective duty rates of 25% to over 50% when all active layers are combined. Electronics, machinery, chemicals, textiles, and consumer products are the most heavily affected categories. The elimination of IEEPA surcharges provides some relief, but the remaining layers ensure China remains the highest-tariff origin for most product categories.

🇬🇧
China Strategy Consideration: With IEEPA surcharges gone but Section 301 + fentanyl + Section 122 still in place, the effective rate on many Chinese goods has actually decreased slightly from where it was before February 20. However, the 150-day clock on Section 122 means this rate structure is temporary. If Congress does not act by July 24, the 15% layer drops off — but there is no guarantee the administration will not seek alternative authorities to replace it. Continue diversifying sourcing away from China as a long-term hedge.

Immediate Action Items for Importers

Today is not a day to wait and see. The tariff regime has changed, and the importers who act fastest will save the most money and avoid the most disruption. Here are six things you should do today:

1. Contact Your Customs Broker TODAY

Your broker needs to update your entry procedures immediately. The duty classification on every shipment entering the U.S. has changed. Confirm that your broker has received CBP's updated guidance, understands the Section 122 exemption list, and is correctly classifying your goods under the new regime. If your broker has not proactively reached out to you this morning, call them.

2. Verify Which Products Are Exempt

Cross-reference every product you import against the Section 122 exemption list. Pharmaceuticals, semiconductors, critical minerals, agricultural commodities, energy products, lumber, and goods under Section 232 orders are all exempt. Even partial exemptions on your product mix can save tens of thousands of dollars over 150 days.

3. Review Goods in Transit and Entry Timing

If you have shipments on the water, determine immediately whether they qualify for the goods-in-transit exclusion. Verify vessel departure dates, confirm loading dates with your freight forwarder, and plan your entry filing to fall within the exclusion window. A single day's delay in filing could cost you 15% on the entire shipment.

4. Begin IEEPA Refund Documentation

If you paid IEEPA-based tariffs at any point, those duties were collected under a legal authority the Supreme Court has now invalidated. The process for refund claims is still being established, but you should begin assembling your documentation now: entry summaries, duty payment records, IEEPA-classified assessments, and CBP receipts. Early filers will have the strongest claims.

5. Adjust Pricing Models for 15% Duty

If you were paying higher IEEPA rates, your landed costs may have actually decreased. If you were paying no tariffs or lower rates on certain goods, you now face a new 15% baseline. Either way, update your pricing models, communicate changes to your sales team, and recalculate margins. Do not wait until Q2 financials to discover the impact.

6. Communicate with Suppliers About Sourcing Shifts

The tariff reset creates new sourcing math. Countries that were under punitive IEEPA reciprocal tariffs are now at 15% flat. Countries that were previously untariffed are now at 15%. Run the numbers on your supplier portfolio and determine whether the new rate structure changes your optimal sourcing mix. Communicate with suppliers early — lead times for switching are measured in months, not weeks.

Need Help Navigating the Tariff Reset?

Miami Alliance 3PL provides flexible warehousing, FTZ access, and customs coordination to help you adapt to the new tariff regime — starting today.

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How Miami Alliance 3PL Supports Your Transition

A tariff reset of this magnitude does not just change your duty bill — it changes your entire logistics strategy. Where you store goods, how you time entries, and whether you can access trade-zone benefits all become critical financial decisions. Here is how Miami Alliance 3PL helps you navigate each one:

Foreign Trade Zone Access

Miami-Dade County is home to one of the most active Foreign Trade Zones in the nation. Goods stored in an FTZ are considered outside U.S. customs territory for duty purposes. You can defer duty payments until goods enter domestic commerce, reduce duties using inverted-tariff provisions, or re-export without paying U.S. duties at all. In a 15% global tariff environment, FTZ strategies can save thousands per shipment — and the savings compound over a 150-day tariff window.

Flexible Storage for Stockpiling

The 150-day clock creates a stockpiling incentive: if you believe tariffs will increase after Congress acts, importing now at 15% is the smart play. Miami Alliance 3PL offers no-minimum, no-long-term-contract storage that lets you scale from 10 pallets to 500+ without breaking a lease. When the tariff window closes or policy stabilizes, scale back down. You pay only for the space you use.

Customs Coordination

Our team works directly with customs brokers and freight forwarders to ensure your entries are filed correctly under the new Section 122 regime. We help you time your entries to maximize goods-in-transit exclusions, verify exemptions are properly claimed, and avoid dual-assessment errors that plagued importers in the February 20-24 transition window.

LATAM Gateway for Nearshoring

The tariff reset has changed the sourcing math for dozens of countries. With IEEPA reciprocal tariffs gone and a flat 15% Section 122 rate in place, Latin American sourcing has become more competitive than ever. Miami is the undisputed gateway to LATAM — PortMiami handles direct routes to every major Latin American port. Goods from Colombia, Brazil, Chile, and the rest of the region arrive in days, clear customs faster, and reach your customers sooner.

Frequently Asked Questions

What tariffs ended at midnight on February 24, 2026?

All tariffs imposed under IEEPA authority ended. This includes reciprocal tariffs on most countries, China-specific IEEPA surcharges, the Canada and Mexico IEEPA additions, and the trafficking and immigration tariffs. CBP stopped collecting IEEPA duties at midnight on February 23-24, following the Supreme Court's 6-3 ruling in Learning Resources v. Trump on February 20. Tariffs imposed under other legal authorities (Section 301, Section 232, bilateral agreements) remain in effect.

What is the new Section 122 tariff rate and when does it expire?

The new tariff is 15%, which is the statutory maximum under Section 122 of the Trade Act of 1974. It took effect at 12:01 AM EST on February 24, 2026, and applies to approximately $1.2 trillion in annual imports. Section 122 has a built-in 150-day limit, meaning this tariff expires around July 24, 2026, unless Congress passes legislation to extend or replace it. The rate cannot be raised above 15% without Congressional action.

Are goods currently in transit subject to the new 15% tariff?

Goods that were loaded onto a vessel and physically in transit before 12:01 AM EST on February 24, 2026 are excluded from the new 15% Section 122 tariff, provided they are entered for consumption within the applicable deadline. Importers must retain bills of lading, shipping manifests, and vessel departure records as proof. Contact your customs broker immediately to verify your shipments' eligibility and plan your entry filing accordingly.

Which products are exempt from the 15% Section 122 tariff?

Key exemptions include: USMCA-compliant goods from Canada and Mexico, pharmaceuticals and medical devices, semiconductors and electronic components, critical minerals and copper, agricultural commodities (raw or minimally processed), lumber and forestry products, energy products (crude oil, refined fuels, natural gas, uranium), products already under Section 232 tariff orders (steel, aluminum, autos), and goods in transit before the effective date. For a complete product-by-product breakdown, see our full exemption list article.

How do tariffs on Chinese imports work after February 24, 2026?

Chinese imports face a layered tariff structure: the 10% fentanyl-related tariff (reduced from 20% via a November 2025 bilateral agreement), the new 15% global Section 122 tariff, plus pre-existing Section 301 tariffs that vary by product category (7.5% to 100%). Combined, many Chinese goods face effective duty rates of 25% to over 50% depending on classification. The IEEPA-specific China surcharges are gone, which provides some marginal relief, but the remaining layers ensure China remains the highest-tariff major trading partner.