By Adrienne Galeas
February 27, 2026

3 MIN READ

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Supply chain conditions are always evolving, and U.S. tariffs remain a key variable in global trade planning. Over a roughly 48-hour period, the tariff framework changed significantly. On February 20, 2026, the U.S. Supreme Court ruled that the administration’s IEEPA-based tariff actions were not authorized under that statute.

Later that day, the White House announced a new approach: a temporary import surcharge under Section 122 of the Trade Act of 1974.

A separate Executive Order, “Ending Certain Tariff Actions” (February 20, 2026), ended collection of the additional IEEPA-based duties while leaving the Section 122 action in place.

The Section 122 proclamation was published in the Federal Register on February 25, 2026. It states the surcharge took effect February 24, 2026 (12:01 a.m. EST) and is scheduled to remain in effect until July 24, 2026 (12:01 a.m. EDT), unless changed earlier or extended by Congress. The notice also confirms Section 122 allows a temporary surcharge for up to 150 days and authorizes rates up to 15% ad valorem.

The “Wait and See” Dynamic

It will be important to monitor how countries respond when previous reciprocal tariff rates were higher than the new surcharge. In some cases, trade routes may now be less costly. At the same time, ongoing uncertainty may lead many businesses to remain cautious about making immediate sourcing changes, especially with the current measure scheduled to sunset in five months unless extended.

Two Key Questions Ahead

Refunds: Will importers receive retroactive refunds for duties paid under the invalidated IEEPA tariffs?
The July 24 Deadline: Will Congress extend the Section 122 surcharge or allow it to expire?

The answers will become clearer over time, but many supply chains must make decisions in the near term. For now, the priority is to remain flexible and make informed decisions in a complex and changing trade environment.

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