Feb. 24, 2026 — Washington, D.C. — President Donald Trump’s 15 percent ad valorem temporary import surcharge on most goods took effect at 12:01 a.m. EST, invoking Section 122 of the Trade Act of 1974 four days after the Supreme Court ruled 6-3 that his broader “reciprocal” tariffs under the International Emergency Economic Powers Act were unauthorized, potentially paving the way for refunds on $133 billion in collected duties.
The surcharge, initially proclaimed at 10 percent on Feb. 20 but raised to the 15 percent statutory maximum via Trump’s social media announcement the next day, applies for up to 150 days through July 24 unless modified by Congress. It addresses “large and serious United States balance-of-payments deficits” that “endanger the ability to finance spending, erode investor confidence, and distress financial markets.”
I find that a surcharge in the form of ad valorem duties on certain imports is required to deal with the United States’ large and serious balance-of-payments deficit.
The White House proclamation lists exemptions including critical minerals, energy products, certain agricultural goods like beef and oranges, pharmaceuticals, electronics, vehicles, USMCA-compliant imports from Canada and Mexico, and goods already subject to Section 232 tariffs. The surcharge stacks with existing duties such as Section 301 but excludes de minimis shipments.
In Learning Resources, Inc. v. Trump, Chief Justice Roberts wrote for the majority that IEEPA’s authority to “regulate . . . importation” does not encompass tariffs, a core congressional power under Article I, Section 8 of the Constitution.
The most natural reading of the International Emergency Economic Powers Act does not encompass the power to impose tariffs.
U.S. Customs and Border Protection halted IEEPA tariff collections effective today, per reports, while the new measure modifies the Harmonized Tariff Schedule.
Markets reacted with volatility: Dow futures dropped 0.3 percent, gold rose 1 percent, and bitcoin fell 3 percent, according to Yahoo Finance live updates. The EU warned of violations to trade deals, with officials stating “A deal is a deal” and considering retaliation.
Critics, including legal experts at Ropes & Gray and BDO, highlighted potential legal challenges, inflation risks, and supply chain issues. Section 122, rarely invoked for tariffs, offers importers a 150-day window amid uncertainty, as noted by Reuters and CBS News.
