Trump’s 10% Global Tariff Expires Tomorrow — But Your Import Costs Probably Aren’t Going Down
The Section 122 global tariff sunsets by law at 12:01 a.m. July 24, 2026. Here's what replaces it and why small importers shouldn't expect relief.
The 10% global import surcharge imposed under Section 122 of the Trade Act of 1974 is scheduled to expire by operation of law at 12:01 a.m. EDT on July 24, 2026 — 150 days after it took effect on February 24. It’s a real deadline, but small importers shouldn’t expect their landed costs to drop: the administration already has replacement tariffs lined up.
Section 122 caps balance-of-payments tariffs at 150 days unless Congress votes to extend them, and no extension legislation is pending. That statutory ceiling — not a court ruling — is what ends the 10% surcharge at midnight. This is a follow-up to the legal fight CentsIQ covered on July 21: the Court of International Trade had ruled the tariff unlawful back on May 7, 2026, but the Federal Circuit stayed that ruling in June, letting collection continue. The appeal (now styled State of Oregon v. United States) is still pending, and any refund of the roughly $25 billion already collected in the tariff’s first weeks depends on how that appeal is ultimately decided — the July 24 sunset doesn’t resolve or accelerate that question.
Crucially, the expiration of Section 122 authority doesn’t mean the end of new import duties. The administration is already pursuing replacements: USTR issued a June 2 determination proposing 10-12.5% duties tied to forced-labor concerns affecting roughly 60 trading partners, following a July 7 public hearing, and separate Section 232 pharmaceutical tariffs of 100% are set to hit larger companies July 31 and other companies September 29. Unlike Section 122, those authorities carry no 150-day statutory ceiling and no automatic expiration date.
Why it matters
For a business that adjusted pricing, sourcing, or supply contracts around the 10% surcharge, “expiration” is not the same as “relief.” The legal mechanism that capped this specific tariff at 150 days doesn’t apply to the tariffs replacing it, so there’s no guarantee — and arguably no realistic expectation — that landed costs actually fall on July 24.
What this means for small businesses
Don’t assume your import costs reset. Check whether your goods fall under the incoming Section 301 forced-labor-related duties or existing Section 232 categories before adjusting prices or vendor contracts.
If you paid the Section 122 surcharge on imports since February 24, keep those entries and duty payment records well organized — any refund eligibility will hinge on the pending Federal Circuit appeal, and you’ll want clean documentation if a refund process eventually opens.
Revisit landed-cost forecasts for Q3/Q4 rather than treating July 24 as a clean cutover date; the replacement duty structure is still being finalized.
If tariffs are a material cost line for your business, loop in whoever preps your books now so duty changes get flagged and categorized correctly as the replacement rules take effect.
Key stat: the Section 122 surcharge collected an estimated $25 billion in its first 72 days alone — while the replacement Section 301 and 232 duties carry no 150-day statutory ceiling and no built-in expiration date.
The bottom line
A specific 10% tariff expires by law tomorrow, but the tariff era for small importers isn’t ending — it’s just changing labels. Plan your Q3 costs around the incoming Section 301 and 232 duties, not around the assumption that July 24 brings a discount.
