Update to the End of the IEEPA Tariff and Start of the Section 122 Tariff

Ending of IEEPA Tariffs
CBP issued a CSMS message stating that IEEPA tariff collection will officially end at 12:00am EST on February 24, 2026. Entries with an entry date before this date are still subject to the IEEPA tariff. As of this afternoon, there are no avenues to adjust these entries.

Implementation of the Section 122 Tariff
The section 122 tariff will be assessed starting at 12:01am EST on February 24, 2026. The section 122 tariff was initially announced to be 10%. Over the weekend, Trump posted on social media that he would increase the tariff rate to 15%. However as of Monday evening, February 23, 2026, the White House has not made any formal announcement of this increase. Until there is a formal announcement, we assume the Section 122 tariff will be assessed at the initial 10% amount. We will send out an update once we receive a White House message confirming any increase to the Section 122 tariff.

As a reminder, these are the products that are exempted from the Section 122 tariff. If your product meets one of these exemptions, we highly recommend that the commercial invoice explicitly mentions the correction exemption tariff number in addition to the correct base tariff classification.

Exemptions

Ocean shipments that were loaded onto the mother vessel departing before 12:01am EST on February 24, 2026 and with entry to the United States before 12:01am EST on February 28, 2026. These entries will use 9903.03.02 to exempt the product from the section 122 tariff.
Certain HTS classifications listed under Annex I and Annex II – From what we have reviewed, we believe these are identical to the Annex II exemptions that were previously applied to the IEEPA reciprocal tariffs. Importers should still review and doublecheck to be certain. These products will be exempted from the Section 122 tariff by declaring HTS# 9903.03.03 and 9903.03.04.
Articles of civil aircraft; their engines, parts and components, mentioned section aa(iv) of Annex I are exempted using HTS# 9903.03.05.
Products subject to a section 232 tariff (steel, aluminum, copper, auto/auto parts, light trucks, etc.) are exempted using HTS# 9903.03.06.
Products from Canada subject to the USMCA are exempted using HTS# 9903.03.07.
Products from Mexico subject to the USMCA are exempted using HTS# 9903.03.08.
Textile or apparel articles from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras or Nicaragua are exempted using HTS# 9903.03.09.
Articles that are donations (such as food, clothing, and medicine) intended to be used to relieve human suffering are exempted using HTS# 9903.01.10.
Articles that are informational materials are exempted using HTS# 9903.03.11.