WASHINGTON: President Donald Trump has raised a temporary, across-the-board U.S. import tariff to 15% from 10%, applying the higher rate to most goods entering the United States from all countries as the administration shifts to a new legal basis for its sweeping duties. The new tariff is structured as an ad valorem customs duty and is scheduled to take effect at 12:01 a.m. Eastern time on Tuesday, Feb. 24, according to federal notices and administration statements issued after a major Supreme Court ruling on tariffs.
A White House proclamation dated Feb. 20 invoked Section 122 of the Trade Act of 1974 to impose a temporary import surcharge for 150 days, initially set at 10% and timed to begin Feb. 24. Over the weekend, the administration said the rate would be lifted to 15%, the maximum allowed under the statute. The proclamation specifies the action will remain in place through 12:01 a.m. Eastern daylight time on July 24 unless suspended, modified, terminated earlier, or extended by an act of Congress.
U.S. Customs and Border Protection said it will stop collecting tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. Eastern time on Feb. 24, following the Supreme Court’s decision that the law does not authorize the president to impose tariffs. CBP said it will deactivate tariff codes tied to the earlier IEEPA-related orders and provide further instructions through its Cargo Systems Messaging Service. The agency did not detail a refund process for duties collected under the invalidated program.
Legal Reset After Court Ruling
The Section 122 surcharge is treated as a regular customs duty and, in most cases, is added to other applicable duties, taxes, and fees. The proclamation says the surcharge is not applied in addition to tariffs imposed under Section 232, the national security tariff statute. Where Section 232 applies to part of an import, the surcharge applies only to the portion not covered by Section 232. The proclamation also sets rules for goods admitted into U.S. foreign trade zones after the effective date and includes a limited in-transit carveout tied to shipments loaded and in final transit before the start time.
The proclamation lists broad exemptions, including certain critical minerals, metals used in currency and bullion, energy and energy products, and specific natural resources and fertilizers. It also exempts certain agricultural products, including beef, tomatoes, and oranges, as well as pharmaceuticals and pharmaceutical ingredients, certain electronics, and specified passenger vehicles, trucks, buses, and related parts. Additional exemptions cover certain aerospace products, information materials, donations, and accompanied baggage, along with duty-free goods of Canada and Mexico under the U.S.-Mexico-Canada Agreement and certain duty-free textiles and apparel under the Dominican Republic-Central America trade agreement.
Trade Partners Seek Clarity
The shift has drawn formal responses from major trading partners. The European Commission said the United States should stick to the terms of last year’s EU-U.S. trade agreement and said, “A deal is a deal.” China’s commerce ministry said the United States’ unilateral tariffs violate international trade rules and U.S. domestic law and urged Washington to lift what it described as unilateral tariff measures. European Central Bank President Christine Lagarde said the upheaval in U.S. trade policy could disrupt business and called for clarity and constitutional compliance.
The court ruling also created immediate questions about previously collected revenue under the invalidated IEEPA tariffs. Economists at the Penn Wharton Budget Model estimated the IEEPA-based tariffs generated more than $500 million per day and that more than $175 billion in Treasury revenue could be subject to refund after the Supreme Court decision. Treasury Secretary Scott Bessent said refund issues would be addressed by lower courts, while CBP said it will provide additional guidance to importers through its Cargo Systems Messaging Service as the new duties take effect Tuesday. – By Content Syndication Services.