According to CBP, the Section 122 temporary import surcharge expires at 12:01 a.m. EDT on July 24, 2026, hitting its statutory 150-day cap. The surcharge, originally set at 10% [?] on nearly all U.S. imports, was imposed under the Trade Act of 1974 after the Supreme Court struck down IEEPA-based tariffs in February. On May 7, the U.S. Court of International Trade ruled Section 122 exceeded presidential authority (Slip Op. 26-47), but the Federal Circuit stayed enforcement pending appeal — so CBP kept collecting. Today, the clock runs out unless Congress extends it.

What does this mean if you source from China? Three scenarios matter:

1. Tariff vacuum: If no replacement passes, most non-Section 301/232 imports revert to MFN baselines. Cost relief — but probably temporary.

1. Sectoral replacement: Section 232 expansions are already queued (pharma effective July 31; semiconductors, autos, MedTech under review). These are often higher than the 10% [?] surcharge and permanent.

1. Status quo via extension: Low probability in an election year, but not zero.

The layer that does not move today: Section 301 duties on China-origin goods remain fully in effect at 7.5%–100% depending on HTS, and 178 product-level exclusions are still extended only through November 10, 2026.

Our view: if China is in your supply chain, re-run your landed-cost model this week under all three scenarios before locking in Q3/Q4 POs. The baseline shifted at midnight.

Contact: yuanbo@thecustoms.com.cn

Comment ‘guide’ if you’re managing China supply chain costs and want a tariff-exposure mapping checklist.

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