Section 122 (Balance-of-Payments Surcharge)

Section 122 of the Trade Act of 1974 allows an emergency import surcharge of up to 15% to address a large balance-of-payments deficit — but only for a maximum of 150 days unless Congress acts to extend it. It was used for the flat 10% reciprocal tariff that took effect February 24, 2026 (after the IEEPA tariffs were struck down) and reached its 150-day statutory sunset on July 24, 2026, when a two-tier 10%/12.5% Section 301 forced-labor tariff replaced it with no gap. Example: goods that entered between February 24 and July 24, 2026 paid the 10% Section 122 layer — payments that could become refundable if the pending Federal Circuit appeal rules the surcharge unlawful. It matters because Section 122 is NOT current and NOT expiring in the future; it already sunset, and importers should keep clean entry records (7501s, liquidation dates) in case a refund wave follows the IEEPA precedent.