The 150-Day Tariff Clock Is Running: What U.S. Importers Should Do Before July 24

The temporary 10% U.S. import surcharge is scheduled to end on July 24, 2026, unless Congress extends it. But ongoing litigation, overlapping tariffs, and proposed replacement measures mean businesses should not assume their import costs will simply return to normal.

U.S. importers are approaching another important tariff deadline.

A temporary 10% surcharge currently applies to many goods imported into the United States. The measure took effect on February 24, 2026, and is scheduled to remain in force through 12:01 a.m. Eastern Daylight Time on July 24, 2026.[1]

The surcharge was imposed under Section 122 of the Trade Act of 1974, a rarely used provision that allows the President to impose certain temporary import restrictions to address specified international-payment problems.

But Section 122 places a strict limit on the duration of the measure.

The President may impose the surcharge for no more than 150 days unless Congress passes legislation extending it.

That means the current surcharge cannot simply continue indefinitely through another presidential announcement under the same 150-day authority.

For U.S. businesses, however, July 24 should not be viewed as a guaranteed return to pre-surcharge import costs.

Several uncertainties remain:

• Congress could authorize an extension;

• The administration could modify or terminate the surcharge before July 24;

• Other tariffs could replace some of the lost duty;

• Existing Section 301 and Section 232 tariffs may continue;

• Proposed forced-labor tariffs could affect products from numerous countries;

• Product exclusions and trade-agreement rules may change;

• Litigation could eventually create refund rights; and

• Contracts may determine whether any tariff savings are retained by the importer or passed to customers.

The result is a difficult planning environment.

Businesses must prepare for several possible outcomes rather than assuming either that the tariff will continue or that it will disappear without replacement.

What the Temporary Surcharge Does

Presidential Proclamation 11012 imposed a temporary additional duty of 10% ad valorem on covered imports entering the United States.

An ad valorem duty is calculated as a percentage of the merchandise’s customs value.

For example, if covered merchandise has a customs value of $500,000:

$500,000 × 10% = $50,000

The importer would owe an additional $50,000 under the temporary surcharge.

That amount may be added to other applicable duties, taxes, fees, and charges.

Consider a simplified example in which the same $500,000 shipment is subject to:

• A 5% ordinary customs duty;

• A 25% Section 301 tariff; and

• The 10% temporary surcharge.

The duties would be calculated as follows:

Ordinary duty:
$500,000 × 5% = $25,000

Section 301 duty:
$500,000 × 25% = $125,000

Temporary surcharge:
$500,000 × 10% = $50,000

Total duties before other applicable fees:
$25,000 + $125,000 + $50,000 = $200,000

The effective duty burden in that example would be 40% of the customs value.

Actual calculations depend on the product, classification, country of origin, valuation method, exclusions, trade agreements, and other applicable measures.

The temporary surcharge does not apply in addition to a Section 232 tariff on the same portion of an imported article. If a Section 232 tariff applies only to part of the import, however, the temporary surcharge may apply to the remaining portion.

This is one reason why businesses should not evaluate the surcharge in isolation.

The Surcharge Does Not Cover Every Product

The proclamation contains significant product and transactional exceptions.

The surcharge generally does not apply to specified categories that include:

• Certain critical minerals;

• Certain energy and energy products;

• Metals used in currency and bullion;

• Certain natural resources and fertilizers;

• Specified agricultural products;

• Pharmaceuticals and pharmaceutical ingredients;

• Certain electronics;

• Specified passenger vehicles, trucks, buses, and automotive parts;

• Certain aerospace products;

• Informational materials;

• Donations;

• Accompanied baggage;

• Products subject to applicable Section 232 restrictions;

• Qualifying USMCA goods of Canada and Mexico; and

• Certain qualifying textile and apparel goods from CAFTA-DR countries.[2]

The precise exclusions are defined through the Harmonized Tariff Schedule and the proclamation’s annexes.

A business should not rely solely on a general product description.

A product may be commercially described as a pharmaceutical ingredient, automotive component, electronic device, mineral, agricultural product, or aircraft part but still fail to fall within the particular tariff provision identified in the exclusion.

The controlling questions include:

• What is the product’s correct HTSUS classification?

• Does that classification appear in the exclusion annex?

• Does the product satisfy any limiting language?

• Is another tariff provision required to claim the exception?

• Is the country of origin correct?

• Is a trade-agreement claim properly supported?

• Does another tariff measure apply instead?

The fact that a customs broker entered a product without the surcharge does not necessarily establish that the treatment was legally correct.

The importer of record remains responsible for exercising reasonable care.

Canadian and Mexican Goods Are Not Automatically Exempt

The surcharge excludes goods entered duty-free as qualifying goods of Canada or Mexico under the USMCA.

That does not mean every product shipped from Canada or Mexico is exempt.

A product must actually satisfy the applicable USMCA rule of origin and the other conditions required for preferential treatment.

A product assembled in Mexico from Chinese, Indian, European, or other non-originating inputs may or may not qualify.

The legal analysis may require:

• Classification of the finished product;

• Classification of relevant materials;

• Identification of the materials’ countries of origin;

• Review of the manufacturing process;

• Application of the product-specific rule of origin;

• Calculation of regional value where required; and

• Supporting certifications and records.

A Mexican invoice, Canadian shipping address, or “Made in Mexico” label does not independently establish USMCA eligibility.

The exclusion from the temporary surcharge therefore increases the financial value of accurate origin planning.

It also increases the risk of liability where an unsupported USMCA claim is used to avoid the 10% duty.

The Important Date Is Generally the Customs Entry Date

Businesses frequently ask whether the relevant date is:

• The purchase-order date;

• The contract date;

• The date of manufacture;

• The shipment date;

• The vessel departure date;

• The arrival date;

• The customs-entry date; or

• The date duties are paid.

The proclamation states that the surcharge applies to goods entered for consumption or withdrawn from warehouse for consumption during the applicable period.

The surcharge began at 12:01 a.m. Eastern Standard Time on February 24, 2026, and is scheduled to continue through 12:01 a.m. Eastern Daylight Time on July 24, 2026.

Accordingly, the timing of entry for consumption or withdrawal from warehouse for consumption is generally more important than when the purchase agreement was signed or when the supplier shipped the goods.

A product purchased in June and shipped before July 24 may still avoid the surcharge if it is not entered for consumption until after the expiration—provided the measure is not extended or replaced and the customs treatment is otherwise lawful.

Conversely, a product ordered months before the surcharge was announced may still have been subject to it if entered during the effective period.

Businesses should not attempt to manipulate entry timing without evaluating:

• Customs-bond obligations;

• Storage expense;

• Demurrage and detention;

• Port congestion;

• Warehouse availability;

• Foreign-trade-zone treatment;

• Importer cash flow;

• Replacement tariffs;

• Contractual delivery obligations; and

• Whether the anticipated tariff treatment is legally available.

The cost of delaying entry may exceed the tariff savings.

Goods in Bonded Warehouses Require Special Analysis

The proclamation specifically applies to goods withdrawn from warehouse for consumption during the effective period.

That means the withdrawal date may determine whether the temporary surcharge applies to merchandise stored in a customs bonded warehouse.

But bonded warehousing is not a cost-free or universally available solution.

Businesses must consider:

• Whether the goods are eligible for warehouse entry;

• Storage fees;

• Bond requirements;

• Permitted storage periods;

• Inventory control;

• Product deterioration;

• Insurance;

• Customer delivery commitments;

• Whether another tariff applies at withdrawal; and

• Whether delaying withdrawal creates a greater commercial loss.

A company should not place goods in a bonded warehouse merely because it expects the surcharge to expire.

It should compare the entire cost and legal effect of the strategy.

Foreign-Trade Zones May Not Produce the Same Result

The proclamation requires covered merchandise admitted into a U.S. foreign-trade zone during the effective period to be admitted in privileged foreign status, subject to specified exceptions.

Privileged foreign status generally preserves the tariff classification and duty treatment associated with the merchandise at the time that status is elected.

As a result, admitting goods into an FTZ before July 24 may not allow a business simply to wait for the temporary surcharge to expire and then enter the same goods free of that duty.

The treatment of a particular FTZ transaction depends on the goods, admission status, manufacturing activity, applicable tariff provisions, and later entry.

Businesses using foreign-trade zones should obtain transaction-specific advice rather than assuming that an FTZ and a bonded warehouse produce identical tariff results.

The Surcharge Is Being Challenged in Court

The temporary surcharge is also the subject of significant litigation.

On May 7, 2026, a divided panel of the U.S. Court of International Trade held that the President had exceeded the authority provided by Section 122.

The court concluded that the economic conditions cited in the proclamation did not satisfy the statutory requirement concerning large and serious U.S. balance-of-payments deficits.

The court entered relief for the importer plaintiffs and the State of Washington. It did not issue a universal order stopping collection from every U.S. importer.[3]

The federal government appealed.

On June 11, 2026, the U.S. Court of Appeals for the Federal Circuit stayed the lower court’s judgments while the appeal proceeds.[4]

The practical result is that the surcharge remains in effect and continues to be collected on covered entries.

Importers should not stop declaring or paying the duty based on the Court of International Trade decision.

The Federal Circuit’s stay means that the lower court’s injunction and refund orders are paused while the appellate court considers the case.

What the Court Case Could Mean for Refunds

The litigation raises a separate question from the July 24 expiration.

Expiration concerns whether the surcharge may be collected on future entries after the statutory period.

The court case concerns whether the surcharge was legally authorized in the first place.

If the government ultimately prevails, duties properly collected under the measure would generally remain with the government, subject to any entry-specific issues.

If the importers ultimately prevail, businesses that paid the surcharge may seek refunds. But refund eligibility, procedure, scope, and timing could depend on:

• The final appellate ruling;

• Whether the decision extends beyond the named plaintiffs;

• The language of any court order;

• Whether particular entries have liquidated;

• Whether protest rights were preserved;

• Whether a post-summary correction remains available;

• Whether separate litigation is required; and

• Future CBP instructions.

Businesses should not assume that a favorable appellate outcome would automatically generate refunds for every importer.

Customs law imposes strict procedural deadlines.

Importers Should Track Entry Liquidation

Liquidation is CBP’s final calculation of the duties owed on an entry.

Before liquidation, an importer may be able to correct certain entry information through a post-summary correction, subject to applicable deadlines and requirements.

CBP generally permits post-summary corrections within 300 days after entry and no later than 15 days before the scheduled liquidation date, whichever occurs first.

After liquidation, an importer generally has 180 days to file a protest challenging a protestable customs decision.[5]

The appropriate preservation strategy for Section 122 duties is not yet uniform for every importer because the litigation remains unresolved.

A company should nevertheless maintain:

• Entry numbers;

• Entry dates;

• Liquidation dates;

• HTSUS classifications;

• Countries of origin;

• Customs values;

• Section 122 duty amounts;

• Exclusion claims;

• USMCA certifications;

• Broker communications; and

• Proof of duty payments.

Without complete records, a company may be unable to quantify or pursue a future refund opportunity.

Expiration Does Not Automatically Create a Refund

If the surcharge ends on July 24, duties properly imposed on earlier entries do not become refundable merely because the measure expired.

Temporary tariffs routinely apply to entries made during their effective periods.

An importer generally cannot recover duties on a February, March, or June entry solely because the same product enters duty-free from the surcharge after July 24.

A refund would require another legal basis, such as:

• A successful challenge to the surcharge’s legality;

• An incorrect classification;

• An overlooked product exclusion;

• A valid USMCA claim;

• An incorrect country-of-origin determination;

• A customs valuation correction;

• A clerical error; or

• Another authorized post-entry adjustment.

Expiration is prospective unless the governing action or a court directs otherwise.

Congress Would Be Required to Extend the Section 122 Period

Section 122 authorizes a temporary import surcharge for no more than 150 days unless the period is extended by an Act of Congress.

That means an extension beyond July 24 under the same statutory authority requires congressional action.

Congress could:

• Extend the existing surcharge;

• Modify the rate;

• Change the product scope;

• Add or remove exclusions;

• Impose additional conditions;

• Replace the measure with another statutory structure; or

• Allow it to expire.

As of June 30, 2026, I cannot confirm that Congress has enacted an extension.

Businesses should therefore plan around the existing July 24 deadline while continuing to monitor legislation and executive action.

Other Tariffs Will Not Expire With the Surcharge

The July 24 deadline applies to the temporary Section 122 measure.

It does not automatically terminate other tariffs or trade restrictions.

Depending on the product, a business may continue to face:

• Ordinary customs duties;

• China-related Section 301 tariffs;

• Section 232 steel, aluminum, copper, automotive, or other measures;

• Antidumping duties;

• Countervailing duties;

• Safeguard tariffs;

• Country-specific trade measures;

• Agriculture-related restrictions;

• Forced-labor detention risk;

• Sanctions;

• Product-specific licensing; and

• Other customs fees.

A product currently excluded from the temporary surcharge because it is subject to Section 232 may remain subject to the applicable Section 232 tariff after July 24.

Similarly, a Chinese product carrying a Section 301 tariff will not lose that tariff merely because the temporary 10% surcharge ends.

Businesses should therefore calculate the post-July 24 cost product by product.

Proposed Forced-Labor Tariffs Could Replace Some of the Savings

USTR has proposed new Section 301 tariffs on covered imports from 60 economies based on findings concerning inadequate forced-labor import prohibitions and enforcement.

The proposed rates are generally 10% or 12.5%, depending on the exporting economy’s laws, enforcement regime, and commitments.

Those tariffs are not yet final.

But if adopted, they could apply after or near the expiration of the temporary surcharge and could affect many of the same imports.

The two measures are legally different.

The temporary surcharge is based on Section 122 and applies broadly, subject to exclusions.

The proposed forced-labor tariffs arise under Section 301 and would depend on country, product scope, exclusions, and the final USTR action.

A product relieved from the 10% Section 122 surcharge could therefore become subject to a separate 10% or 12.5% Section 301 duty.

Businesses should not treat the July 24 date as a guaranteed 10% reduction in landed cost.

Tariff Relief May Vary by Country and Product

The post-July environment could become more fragmented.

Instead of one broad 10% surcharge, importers may face different rates depending on:

• Country of origin;

• Product classification;

• Trade-agreement eligibility;

• Forced-labor policy;

• National-security concerns;

• Industrial sector;

• Trade-remedy orders;

• Bilateral agreements; and

• Government investigations.

That fragmentation creates administrative risk.

A business importing the same type of product from three countries may face three different tariff outcomes.

A company importing products from one country may face different rates across product lines.

This makes centralized tariff planning increasingly important.

The Contract May Determine Who Receives the Savings

If the surcharge expires, the legal duty imposed by the government may end.

That does not necessarily answer whether a supplier must reduce its price or whether an importer must pass the savings to its customer.

The answer depends on the contract.

Fixed-Price Contracts

If the buyer agreed to a fixed delivered price, the seller may be entitled to retain any savings after the tariff expires unless the agreement requires an adjustment.

Conversely, the seller may have been required to absorb the surcharge while it was in effect.

Cost-Plus Contracts

A cost-plus arrangement may require the seller to reduce the price when an identified tariff cost disappears.

The parties should determine which costs are included and what documentation is required.

Tariff Pass-Through Clauses

A clause may allow the seller to add newly imposed duties to the price.

A well-drafted clause should also state whether the seller must remove the surcharge when the duty is reduced, suspended, refunded, or terminated.

A one-directional clause that permits increases but never requires decreases may create a dispute.

Duty-Inclusive Pricing

A contract may state that the price includes all customs duties.

That language could mean that the buyer continues paying the same total price after the surcharge expires.

It could also create ambiguity if the parties negotiated the price based on a specific duty assumption.

Incoterms

The selected Incoterms rule may identify which party handles import clearance and specified import costs.

It does not necessarily determine whether a previously negotiated product price must fall when a tariff ends.

The complete sales agreement remains important.

Refunds Can Create Contract Disputes Too

Suppose the importer passed the 10% surcharge to its customer.

If the courts later require the government to refund that duty, several questions arise:

• Must the importer pass the refund to the customer?

• Did the tariff clause address later refunds?

• Does the importer retain interest paid by the government?

• Can administrative and legal expenses be deducted?

• What if the customer relationship has ended?

• What records establish the amount attributable to each customer?

• What if the importer absorbed only part of the tariff?

• Does the supplier have any claim to the refund?

Contracts often address new tariffs but fail to address refunds, rebates, exclusions, retroactive relief, or successful litigation.

Businesses should correct that omission in future agreements.

Pricing Should Not Be Based on a Single Assumption

A business developing prices for the second half of 2026 should consider at least three scenarios.

Scenario One: The Surcharge Expires Without Immediate Replacement

The covered product’s landed cost may decline by approximately 10% of customs value, subject to all remaining duties and costs.

Scenario Two: Congress Extends or Modifies the Surcharge

The existing duty may continue, or the rate, product scope, or exclusions may change.

Scenario Three: Another Tariff Replaces It

A new Section 301, Section 232, country-specific, or product-specific tariff may apply.

Companies should calculate pricing and margins under each scenario.

A quote that remains open past July 24 should state the tariff assumptions on which it is based.

Importers Should Review Open Purchase Orders

Purchase orders issued before July 24 may relate to goods entering after the deadline.

Businesses should determine whether the price:

• Includes the current surcharge;

• Automatically adjusts if the duty ends;

• Can increase if a new tariff replaces it;

• Is based on a particular Incoterms rule;

• Includes customs brokerage;

• Includes antidumping or countervailing duties;

• Assumes USMCA qualification;

• Requires the supplier to provide origin records; and

• Can be canceled if the landed cost changes materially.

A blanket statement that “buyer pays all tariffs” may not address whether the purchase price should change when the seller’s stated tariff cost disappears.

Businesses Should Review Customer Contracts Too

An importer may focus on its supplier agreement while overlooking commitments made to its own customers.

A customer contract may:

• Fix prices for the entire year;

• Permit tariff surcharges;

• Require cost reductions to be passed through;

• Prohibit retroactive increases;

• Require advance notice of changes;

• Provide audit rights;

• Cap the total surcharge;

• Require supporting customs documents; or

• Allow termination if pricing changes materially.

The importer should ensure that its upstream rights align with its downstream obligations.

For example, if the customer can demand a price reduction immediately when tariffs fall but the supplier is entitled to retain the same price, the importer bears the entire difference.

Nine Steps Importers Should Take Before July 24

1. Identify Every Entry Subject to the Surcharge

Create a report showing:

• Entry number;

• Import date;

• Supplier;

• Country of origin;

• HTSUS classification;

• Customs value;

• Surcharge paid;

• Liquidation date; and

• Product-exclusion status.

2. Confirm Classification and Exclusions

Determine whether each product was correctly classified and whether an available exclusion was overlooked.

3. Review Canadian and Mexican Imports

Verify whether goods claimed as exempt actually qualify under the USMCA.

4. Calculate the Post-July Landed Cost

Model the product’s cost with and without the surcharge and under plausible replacement tariffs.

5. Review Open Contracts and Purchase Orders

Examine tariff, pricing, Incoterms, refund, change-in-law, and termination provisions.

6. Preserve Potential Refund Rights

Monitor liquidation dates and obtain advice concerning post-summary corrections, protests, and other preservation measures.

7. Coordinate With Customs Brokers

Confirm which HTSUS provisions and Chapter 99 numbers are being used and whether entry records match the company’s internal calculations.

8. Avoid Unnecessary Shipping Manipulation

Do not delay or accelerate shipments solely for tariff purposes without considering customs law, storage, demurrage, customer obligations, and replacement measures.

9. Monitor Congress, the Courts, USTR, CBP, and the White House

The legal position may change before July 24.

How TEIL Firms Can Help

The temporary surcharge presents more than one legal issue.

A company may need to determine whether its goods are covered, whether an exclusion applies, whether Canadian or Mexican products qualify under the USMCA, whether contracts require tariff savings to be passed through, or whether customs procedures should be used to preserve potential refund rights.

The approaching deadline also creates broader planning questions.

A business may need to decide whether to place new orders, adjust prices, change suppliers, renegotiate customer contracts, postpone entry, use a bonded warehouse, or prepare for a replacement tariff.

The Evans International Law Firms, LLC—TEIL Firms—helps U.S. and international businesses evaluate tariffs as part of a complete customs, contract, and supply-chain strategy.

Our services include:

• Section 122 surcharge reviews;

• HTSUS classification and product-exclusion analysis;

• USMCA eligibility and origin review;

• Landed-cost and tariff-risk analysis;

• Tariff and change-in-law contract provisions;

• International purchasing and supply agreements;

• Customer price-adjustment and pass-through clauses;

• Incoterms and import-responsibility review;

• Customs-entry and liquidation issue spotting;

• Potential refund and protest planning;

• Section 301 and Section 232 tariff analysis;

• Supplier-origin documentation requirements;

• Alternative sourcing and nearshoring strategy; and

• Cross-border dispute prevention.

A targeted Tariff and Contract Risk Review can help determine:

• Which products are currently subject to the 10% surcharge;

• Whether exclusions have been properly claimed;

• How much the company has paid;

• Whether refund rights should be preserved;

• What the company’s costs may be after July 24;

• Whether contracts require tariff reductions or refunds to be passed through;

• Whether customers or suppliers may demand renegotiation; and

• How proposed replacement tariffs could affect the business.

Businesses should conduct that review before issuing long-term quotes, placing major orders, or assuming that July 24 will automatically restore prior pricing.

Conclusion

The temporary import surcharge is scheduled to end at 12:01 a.m. Eastern Daylight Time on July 24, 2026, unless Congress extends it or the measure is otherwise modified.

That deadline is important.

But it is not the end of tariff uncertainty.

The surcharge remains subject to appellate litigation. Existing trade remedies will continue. New Section 301 and Section 232 measures may emerge. Proposed forced-labor tariffs could affect imports from many major trading partners. Customs classifications and origin claims will remain subject to review.

For U.S. businesses, the correct strategy is not to predict one outcome and build every price, purchase order, and supply-chain decision around it.

The better strategy is to:

• Know exactly what duties the company is paying;

• Understand why each product is or is not covered;

• Preserve procedural rights;

• Review contractual allocation;

• Calculate multiple cost scenarios; and

• Prepare for the measure that may follow the current surcharge.

Tariffs may be announced by governments, but their financial consequences are ultimately determined inside a business’s customs entries, supplier relationships, customer contracts, and pricing decisions.

This article is provided for general informational purposes and does not constitute legal advice. Tariff treatment, exclusions, refund rights, protest deadlines, country of origin, classification, and contractual obligations depend on the merchandise, entry records, parties, governing law, and specific facts.