The 10 percent global tariff the administration imposed on February 24, 2026 under Section 122 of the Trade Act of 1974 expires by statute on July 24, 2026 — 150 days after entry — unless Congress extends it, per the statute's terms described in Congressional Research Service analysis. No extension legislation had advanced as of mid-July, leaving importers a two-week runway to a scheduled duty lapse.
This publication covers the trade-policy timeline, not customs advice; importers should confirm entry dates and refund positions with customs counsel.
Why the clock is built in
Section 122 is the Nixon-era authority: a president may impose import surcharges of up to 15 percent for up to 150 days to address balance-of-payments problems, with Congress able to extend by act. The design reflects a 1974 bargain — emergency trade power, time-boxed. After the Supreme Court's February 20, 2026 ruling struck down the IEEPA tariff structure, per SCOTUSblog's breakdown, the administration turned to Section 122 for the flat global duty, accepting the 150-day limit as the price of a lawful vehicle.
Related stories: 100 Percent Drug Tariffs Set: What the Pharma Proclamation Does · Metals Tariff Rejig Takes Effect August 6: Who Wins, Who Pays.
What July 24 means commercially
The 10 percent duty has priced through roughly five months of imports: retailers booked it into fall buying, manufacturers into cost models. A lapse on schedule cuts that cost line — effectively a mid-year tax decrease for importers — while renewal would snap it back. Per trade-press tracking, a Court of International Trade ruling in May had already found the 10 percent duty unlawful and entered a limited injunction, adding litigation uncertainty on top of the statutory one; the government's appeal kept collections proceeding for most importers while the case moved.
- Importers with goods at sea face entry-timing decisions around July 24 worth real duty dollars.
- Customs brokers are preparing for the first scheduled expiration of a broad tariff in decades.
- Retail buyers planning holiday-season orders want the duty question settled before purchase orders lock.
Will Congress extend it?
Extension requires affirmative legislation, and the politics cut both ways: tariff-supporting members want continuity for the negotiating leverage, while tariff-skeptical members are content to let the authority lapse and call it a tax cut. The 1974 precedent offers no recent guidance — Section 122 has sat unused since the 1970s, per CRS, so no extension playbook exists.
What does this change?
Either the duty lapses on July 24, 2026 and the effective tariff rate drops by roughly the global 10 percent layer, or Congress rewrites the window within days. Per Yale Budget Lab tracking, the US effective tariff rate stood near 10.5 percent in March — the highest since 1943 — and the Section 122 layer is a meaningful slice of it. Businesses cannot plan the difference away; they can only watch the calendar.