U.S. Replaces IEEPA Tariffs with 10% Duty Surcharge

The U.S. Supreme Court has ruled that existing IEEPA tariffs are unlawful. In response, the U.S. administration has immediately replaced these measures with a new 10% flat duty under Section 122 of the Trade Act of 1974.

U.S. SUPREME COURT VOIDS IEEPA-BASED DUTIES

On February 20, the U.S. Supreme Court issued a landmark decision holding that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful, ruling that the statute does not grant the president authority to levy tariffs.

Following the decision, U.S. President Trump signed an executive order terminating all IEEPA-based tariffs, including reciprocal tariffs as well as country-specific duties on Brazil, China, Canada, and Mexico. Those tariffs, in its current form, had been in place since August 7th 2025 (see previous announcing post). 

NEW GLOBAL 10% SURCHARGE

Effective February 24, the voided IEEPA-based tariffs are being replaced by a new global 10% surcharge under Section 122 of the Trade Act of 1974The Supreme Court has ruled tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unlawful. The U.S. administration has replaced them with a new 10% flat duty under Section 122 of the Trade Act of 1974.. This measure, in place for a temporary period of 150 days, applies a 10% ad valorem import duty on articles imported into the United States.

Certain categories are excluded, including specified critical minerals, pharmaceuticals, electronics, passenger vehicles, aerospace products, and, at least for commercial shipments, USMCA-compliant goods originating from Canada and Mexico.

Note that President Trump has indicated that he intends to increase the Section 122 rate to 15%, but no formal order has been signed yet, and CBP guidance is still pending.

OTHER REMAINING U.S. TARIFFS

Importantly, the suspension of de deminis duty-free treatment remains in effect for all countries, thus still applying HS code based duties on every import.

Also, Section 232 on steel and aluminium products, and section 301 (original China) tariffs remain in place.

EVALUATE YOUR IMPACT

Evaluate the impact on your products with Glopal's online duty & tax calculator.

OFFICIAL SOURCES

• U.S. Customs and Border Protection on ending collection of IEEPA duties
• Executive order on "Ending Certain Tariff Actions"
• Executive order on "Continuing the Suspension of Duty-Free De Minimis Treatment for all Countries"
• The White House Fact Sheet on imposing Section 122 global surcharge