by Tariff remains in effect for 150 days and can be extended with Congressional approval
WASHINGTON — Almost as soon as businesses began to cheer the Supreme Court’s decision Friday striking down tariffs imposed under the International Emergency Economic Powers Act, a new tariff emerged from the Trump administration.
On Feb. 20, the White House announced a global tariff of up to 15% set to take effect today, Feb. 24, for a period of 150 days under Section 122 of the Trade Act of 1974. The goal of the action, which can be extended by Congress, is to address the trade deficit between the U.S. and other countries.
“As my advisors have informed me, the United States runs a substantial trade deficit,” President Trump said in a proclamation announcing the new tariffs. “The large, persistent and serious annual United States goods trade deficit has grown by over 40% in the past five years alone, reaching $1.2 trillion in 2024. In 2025, the United States goods trade deficit remained at approximately $1.2 trillion. The effects of this deficit are serious, and this deficit contributes to the fundamental international payments problems facing the United States.”
According to the Cato Institute, the administration can continue to impose tariffs under Section 122 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930 even after the court struck down tariffs imposed under the IEEPA.
However, according to compliance and customs experts CV International, the Section 122 tariff must be approved by Congress if it is to continue after the initial 150 days.
The firm also told Home News Now that this reciprocal Section 122 tariff does not apply to products already facing a Section 232 tariff, including steel and aluminum and certain imported upholstery items.
According to the White House, it also does not apply to articles that are entered free of duty from Canada or Mexico under the the Harmonized Tariff Schedule of the United States.
However, CV International noted that the Section 122 and 232 tariffs do stack on top of the 20% IEEPA/fentanyl tariff on China and any Section 301 tariff on China.
The new tariff is “effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on Feb. 24, 2026,” the president’s proclamation stated. “It remains in effect through 12:01 a.m. Eastern Daylight Time on July 24, 2026, “unless the surcharge imposed in this proclamation is expressly suspended, modified or terminated on an earlier date, or unless the effective period of such surcharge is extended by an Act of the Congress.”
As noted, Congress has the power to continue imposing this tariff after 150 days, or after July 24. But it should act with prudence, particularly given the economic impact and costs tariffs already have imposed on U.S. businesses and consumers.
Indeed the threat, imposition and striking down/reimplementation of tariffs have caused as much if not more disruption and uncertainty than any single activity since the global pandemic.
Any sane person knows that businesses cannot thrive or even survive in such a state of confusion, uncertainty and unnecessary disruption. The hope is that some level of sanity is restored so that businesses can return to running their operations without such roadblocks for the benefit of consumers, employees and other stakeholders.
