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US Section 122 10% global tariff expires July 24 amid court fight

The 150-day statutory clock on the 10% global import surcharge that President Trump imposed under Section 122 of the Trade Act of 1974 runs out at 12:01 a.m. EDT on July 24, 2026. The surcharge terminates automatically by operation of law, without congressional action — but litigation over its legality remains unresolved, and replacement tariff measures are already in the pipeline tradelawcounsel.com.

How the surcharge came about and why a court struck it down

The duty was created by Proclamation 11012, signed February 20, 2026, and took effect February 24, 2026 — the same period in which courts separately struck down IEEPA tariffs. Section 122 lets the president impose temporary import surcharges of up to 15%, but only by pointing to specific 1970s-era balance-of-payments metrics. On May 7, 2026, the Court of International Trade ruled in Oregon v. United States and Burlap and Barrel, Inc. v. United States that Proclamation 11012 was invalid, finding the administration had cited broader trade-deficit and current-account figures the statute does not contemplate. Relief, however, extends only to three named plaintiffs — the State of Washington, Burlap and Barrel, and Basic Fun — leaving other importers still subject to the duty unless they file their own actions skadden.com.

An appellate stay has kept collection going

The government appealed to the Federal Circuit on May 8, 2026 (skadden.com). The appellate court issued a temporary administrative stay of the CIT's order and is weighing a full stay pending appeal; if granted, the government will keep collecting the 10% duty for the duration of the appellate process — which is why the surcharge remained in effect for essentially its full statutory lifespan through July 24 despite being found unlawful by the trial court wardandsmith.com.

What happens after July 24

Expiration of the 150-day period ends the surcharge by operation of law, but does not automatically trigger refunds of duties already paid — that outcome hinges on the appeal in the Oregon case; collection continued through July 23, and Congress could formally extend the Section 122 authority, though no extension legislation is currently pending. Meanwhile, replacement measures are advancing: possible Section 301 duties (10–12.5%) and Section 232 pharmaceutical duties (100%), scheduled for July 31 and September 29, 2026 tradelawcounsel.com.

What importers should do now

Trade counsel advise companies that paid the surcharge not to wait for a final appellate ruling before acting:

Because confirmed refund rights currently belong only to the three plaintiffs in the Oregon case, other importers seeking to preserve recovery options may want to consider filing their own protests or actions rather than waiting for the appeal to conclude.

Primary sources

This material is for information only and does not constitute legal advice or customs consulting. Verify changes against the primary sources before acting.