| DETAILS |
Following the Supreme Court’s ruling invalidating the tariffs issued under IEEPA, President Trump issued a Proclamation imposing a 10% surcharge on all imports, with limited exceptions, for a period of 150 days. Section 122 and the Proclamation intend to address “fundamental international payments problems, such as large and serious balance-of-payments deficits, an imminent and significant depreciation of its currency in foreign exchange markets, or an international balance-of-payments disequilibrium.”
The Proclamation includes Annex I and Annex II listing products not subject to the Sec. 122 10% tariff action, including:
• articles that are entered duty-free under the USMCA;
• all goods which are currently subject to, or which will later become subject to, sector-specific tariffs under Section 232 (i.e. steel, aluminum, copper, automobiles & auto parts, etc.).
• certain critical minerals;
• metals used in currency and bullion;
• energy and energy products;
• natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the United States or grown, mined, or otherwise produced in sufficient quantities to meet domestic demand;
• certain agricultural products, including beef, tomatoes, and oranges;
• pharmaceuticals and pharmaceutical ingredients;
• certain electronics;
• passenger vehicles, certain light trucks, certain medium- and heavy-duty vehicles, buses, and certain parts of passenger vehicles, light trucks, medium- and heavy-duty vehicles, and buses;
• certain aerospace products;
• information materials, donations, and accompanied baggage;
• textile and apparel articles that are entered duty-free under a relevant free trade agreement.
The 10% surcharge is effective until July 24, 2026, unless terminated early or extended by an Act of Congress.
We note that the President posted on Truth Social that the 10% tariff would be raised to 15%, however, there have been no official actions at this time. |
