The 10% Global Baseline Tariff — Everything You Import Now Has a Floor
After the Supreme Court struck down IEEPA-based tariffs in February 2026, the administration pivoted to Section 122 of the Trade Act to impose a 10% tariff on virtually all imports entering the United States.
This is the new floor. Nearly everything coming into the country pays at least 10%, with higher tariffs (Section 301, 232, etc.) stacking on top.
The average effective US tariff rate is now 11% — the highest since 1943.
What Section 122 Means
Section 122 gives the president authority to impose tariffs up to 15% for 150 days to address balance-of-payments issues. The administration invoked it immediately after the Supreme Court ruling to maintain tariff revenue.
Key details:
- Rate: 10% on nearly all imports
- Scope: Global — applies to every country
- Duration: 150 days from February 24, 2026 (expires July 24, 2026)
- Exemptions: USMCA-qualifying goods from Canada and Mexico (85% of their exports qualify), some agricultural products
What Stacks On Top
The 10% baseline is just the floor. For many products, additional tariffs stack:
| Product Source | Base Duty | Section 122 | Section 301 | Section 232 | Fentanyl Duty | Total |
|---|---|---|---|---|---|---|
| China (electronics) | 0-5% | 10% | 25% | — | 20% | 55-60% |
| China (apparel) | 10-15% | 10% | 7.5-25% | — | 20% | 47.5-70% |
| EU (consumer goods) | 5-10% | 10% | — | — | — | 15-20% |
| Vietnam (furniture) | 0-5% | 10% | — | — | — | 10-15% |
| Mexico (USMCA qualifying) | 0% | EXEMPT | — | — | — | 0% |
| Mexico (non-USMCA) | 0-5% | 10% | — | — | — | 10-15% |
The July 24 Expiration
Section 122 tariffs expire after 150 days — July 24, 2026. But don't expect them to simply disappear. The administration is running Section 301 investigations into 16 countries (see our article on that) timed to produce new tariff authority by the same date.
The 10% floor likely gets replaced by country-specific tariffs under Section 301. Some countries may see rates go down from 10%. Others — particularly Vietnam, India, and Indonesia — may see rates go significantly higher.
Who's Affected
Everyone. If you import anything from any country (except USMCA-qualifying goods from Canada/Mexico), you're paying at least 10% more than you were before February 2026.
Industries hit hardest:
- European specialty goods (wine, cheese, olive oil, cosmetics) — were at low or zero duty, now 10%+ minimum
- Japanese/Korean electronics and auto parts — new 10% baseline where there was often none
- Southeast Asian goods (Vietnam, Thailand, Indonesia) — importers who moved out of China to avoid tariffs now face 10% anyway
- Any product from any country previously at 0% MFN duty — now 10% minimum
What You Should Do
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Review your full HTS schedule. Products that were at 0% duty are now at 10% minimum. This changes your landed cost calculations on everything.
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Check USMCA eligibility. If you import from Canada or Mexico, USMCA-qualifying goods are exempt. Ensure your documentation proves USMCA origin — this is now worth real money.
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Plan for July 24. The Section 122 tariff either expires, gets extended, or gets replaced by something else. All three scenarios require preparation.
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Monitor the Federal Register. The replacement tariff structure will be published before July 24. Knowing which of your HTS codes are affected — and at what rate — before your competitors gives you time to adjust pricing and sourcing.
Source
Yale Budget Lab: State of US Tariffs | Tax Foundation Tariff Tracker
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