Section 122 Tariff Update: Two Lawsuits, a Rate Announcement, and a July Deadline

Your Section 122 duty rate is 10% as of today, March 30, 2026. The administration announced an intent to raise it to 15%, but no formal order has been issued. Two lawsuits challenging the surcharge are heading to court on April 10, 2026. Here is what could change your duty costs in the next 100 days.

Background

President Trump issued a proclamation on February 20, 2026, imposing a 10% import surcharge on virtually all imports into the United States, effective February 24, 2026, under Section 122 of the Trade Act of 1974 (19 U.S.C. § 2132, a law that allows the president to impose temporary tariffs of up to 15% for up to 150 days to address fundamental international payment problems). This is a temporary ad valorem surcharge, meaning it applies to the declared value of imported goods, not a flat per-unit charge. Under the statute, the current surcharge expires July 24, 2026. Any extension beyond 150 days requires an act of Congress.

Current Status: The Rate Is 10%, Not 15%

On February 21, 2026, President Trump announced via social media an intent to raise the Section 122 surcharge to 15%, the statutory maximum. Treasury Secretary Scott Bessent confirmed that intention on March 4, 2026. However, as of March 30, 2026, no formal proclamation raising the rate to 15% has been issued.

The current rate remains 10%.

Do not adjust your duty calculations to 15% until a formal proclamation is signed and published in the Federal Register. We will issue an update if and when that changes.

The Two Lawsuits Challenging Section 122

State of Oregon et al. v. Trump (Case No. 1:26-cv-01472)

On March 5, 2026, 24 attorneys general filed suit at the U.S. Court of International Trade (CIT, the federal court that handles tariff disputes), led by the attorneys general of Oregon, Arizona, California, New York, and Vermont, among others. The states argue that the administration has not met the statute's "balance of payments" requirement, the legal standard Section 122 requires as a basis for imposing this type of surcharge. The states are asking the CIT to enjoin (order) U.S. Customs and Border Protection (CBP, the agency that collects import duties) to stop collecting Section 122 duties.

On March 13, 2026, the 24 states filed a Motion for Summary Judgment and a separate Motion for Preliminary Injunction. They argue the statute does not permit Section 122 to be used under the circumstances identified by the president. Oral arguments on those motions are scheduled for April 10, 2026, at 10:00 a.m. EDT in the CIT's ceremonial courtroom in New York City. No ruling has been issued as of March 30, 2026.

Burlap and Barrel, Inc. v. Trump (Case No. 1:26-cv-01606)

On March 9, 2026, the Liberty Justice Center filed suit on behalf of Burlap and Barrel, Inc. (a spice importer) and Basic Fun, Inc. (a toy company). The case was assigned to a three-judge panel consisting of Judges Mark Barnett, Claire Kelly, and Timothy Stanceu. Both cases are before the same panel, and the April 10 oral argument covers both.

What to Watch (and What to Do)

Three developments in the coming weeks could affect your duty calculations significantly.

First, the April 10, 2026 CIT oral arguments. If the court rules to suspend duties, your collections could stop immediately, though any such order would be subject to immediate government appeal. If the court sides with the administration, the surcharge continues unless Congress acts before the July 24 expiration. Either way, your supply chain costs could shift significantly in the next 100 days.

Second, any formal presidential proclamation raising the rate from 10% to 15%. Until that proclamation is published in the Federal Register, the rate stays at 10%. Do not pay 15% based on an announcement alone.

Third, any Section 301 or Section 232 proceedings announced as successor frameworks. Treasury Secretary Bessent, in his March 4, 2026 CNBC interview, referenced Section 301 investigations and Section 232 studies as ongoing during the 150-day window. These could impose tariffs on specific products even after Section 122 expires on July 24, 2026, and would carry their own rate structures and product scope.

The July 24 Deadline

Regardless of the litigation outcome, the Section 122 surcharge expires by statute on July 24, 2026, unless Congress acts to extend it. What replaces it, if anything, will depend on Congressional action and the outcome of any ongoing trade proceedings.

We are monitoring all three developments in real time and will update you as soon as any changes take effect. Your Section 122 duty exposure depends on your import mix and timing. If you have questions about your current liability, contact our trade advisory team.

References

• White House Proclamation (February 20, 2026): whitehouse.gov/presidential-actions/2026/02/imposing-a-temporary-import-surcharge-to-address-fundamental-international-payments-problems/

• State of Oregon et al. v. Trump, Case No. 1:26-cv-01472 (CIT, filed March 5, 2026): ag.ny.gov/press-release/2026/attorney-general-james-leads-lawsuit-stop-trump-administrations-latest-illegal

• Burlap and Barrel, Inc. v. Trump, Case No. 1:26-cv-01606 (CIT, filed March 9, 2026): libertyjusticecenter.org/cases/burlap-and-barrel-inc-v-trump/

• States' Motion for Summary Judgment and Preliminary Injunction (March 13, 2026): ago.vermont.gov/blog/2026/03/13/attorney-general-clark-seeks-court-order-stop-trump-administrations-illegal-tariffs

• Treasury Secretary Bessent (CNBC, March 4, 2026): cnbc.com/2026/03/04/bessent-says-global-15percent-tariff-starts-this-week-move-back-to-prior-rates-within-5-months.html

• 19 U.S.C. § 2132 (Section 122 of the Trade Act of 1974): uscode.house.gov/view.xhtml?req=(title:19+section:2132+edition:prelim)

This advisory is provided for informational purposes only as of March 30, 2026. Trade regulations, executive orders, and tariff classifications are subject to frequent change. Nothing herein constitutes legal advice. Richard G. Fleischer Customs Brokers encourages all importers to consult with a licensed customs broker or qualified trade counsel regarding their specific circumstances.