Tariff Programs
Section 122 — Reciprocal 10% Baseline Tariff and Sunset Schedule
Quick answer
Section 122 is a 10% global baseline tariff on imports from every country except USMCA-qualifying origins. It was activated by presidential proclamation in February 2026 after the Supreme Court struck down the prior IEEPA-based reciprocal framework.
What it is
Section 122 of the Trade Act of 1974 authorizes the President to impose a temporary tariff of up to 15% on imports to address balance-of-payments deficits. The authority sat dormant for decades until February 2026, when it was activated by presidential proclamation to replace the IEEPA-based reciprocal-tariff framework that the Supreme Court struck down in early 2026.
Under the proclamation, Section 122 sets a 10% global baseline on imports from every country except those qualifying for USMCA preferential origin. It stacks additively with MFN, Section 232, Section 301, and AD/CVD — meaning a Chinese-origin product subject to Section 301 List 3 (25%) sees the 10% Section 122 added on top.
Section 122 is codified under HTSUS Chapter 99 Heading 9903.01.x. The statute caps the authority at 150 days unless Congress extends, making the sunset trajectory a meaningful planning factor for importers and brokers. As of mid-2026, no extension has been enacted, but the proclamation has been renewed twice and litigation challenges are pending.
Current rates
| Tier | Rate | Notes |
|---|---|---|
| All non-USMCA origins | 10% | HTSUS 9903.01.x — applies to all goods from non-USMCA-qualifying origins |
| USMCA-qualifying goods (Mexico, Canada) | 0% | Exempt when a USMCA Certification of Origin is filed |
Section 122 stacks additively with MFN, Section 232, Section 301, IEEPA, and AD/CVD. Statutory cap is 150 days unless Congress extends; the proclamation has been renewed twice so far.
Affected HTS codes
Effectively every HTSUS line. Exclusions are by origin (USMCA-qualifying) rather than by HTS chapter.
For any specific code, use the HTS Lookup to see the full stack, current rate, and recent change history.
Recent changes
| HTS | Type | Old → New | Effective | Source |
|---|---|---|---|---|
| 9903.03.01 | rate_increase | 0% → 10% | Feb 24, 2026 | federal_register |
| 0000.00.00 | rate_increase | 0% → 10% | Feb 24, 2026 | federal_register |
Primary sources
Related tools
Frequently asked questions
What's the legal basis for Section 122?
Section 122 of the Trade Act of 1974 (19 USC §2132) authorizes the President to impose import surcharges up to 15% for up to 150 days to address balance-of-payments problems. The current proclamation invokes this authority and sets the rate at 10%.
When does Section 122 expire?
The statutory cap is 150 days per invocation unless Congress extends. The current proclamation has been renewed via successive proclamations. Track the sunset schedule with our Section 122 sunset tool.
Are there any product-level exclusions?
Not currently. Section 122 exempts USMCA-qualifying origins as a class but does not have a product-level exclusion process analogous to Section 301.
Does Section 122 stack with Section 232 and Section 301?
Yes. All three are additive. A Chinese-origin steel article can face MFN base + Section 232 (50%) + Section 301 List 1 (25%) + Section 122 (10%).
Related
- Methodology — how TariffDesk computes the duty stack and verifies sources.
- Tariff glossary — definitions of the program terms used on this page.
- Tariff news — change-by-change reporting on detected rate moves.