What You Need to Know About the New Import Tariff
Effective February 24, 2026 at 12:01 a.m. ET, all goods imported into the U.S. will be subject to a new 10% universal tariff, with limited exemptions (detailed below). Specifically, this tariff is issued under Section 122 of the Trade Act of 1974, which authorizes the President to impose temporary tariffs in response to significant balance-of-payments deficits.
Critical Alert: The 10% tariff rate may increase to 15% imminently. As of now, official CBP guidance on any rate adjustment has not yet been provided—therefore, monitor CBP announcements closely.
The 10% universal tariff will remain in effect through July 24, 2026 (150 days maximum), unless Congress approves an extension. This represents a significant shift in the tariff landscape and demands immediate action on your part.
Timeline & Key Transition Rules for the 10% Tariff
Effective Date: February 24, 2026, 12:01 a.m. ET
Grace Period — Important Transition Rule: Notably, goods already in transit directly to a U.S. point of entry before 12:01 a.m. ET on February 24, and subsequently cleared for entry into the U.S. before 12:01 a.m. ET on February 28, 2026 will not be subject to the 10% universal tariff. This grace period affects direct shipments only—transshipments and warehoused goods do not qualify.
Duration: The 10% tariff will remain in effect for a maximum of 150 days (through July 24, 2026). However, any extension beyond this period requires Congressional approval. Plan accordingly for this temporary measure.
Related Development: Furthermore, February 24 is also when IEEPA tariff authority ends.
How Tariffs Compound: Understanding Stacking Effects
How Tariff Stacking Works in Practice
Importantly, the new 10% universal tariff stacks on top of all existing tariffs—it does not replace them. Consequently, this means goods may now be subject to multiple layers of duties simultaneously:
- The new 10% tariff
- Plus Section 301 tariffs (China-related trade action)
- Plus Most Favored Nation (MFN) tariffs
- Plus any other applicable duties (AD/CVD, etc.)
Real-World Example: Consider a good subject to a 25% Section 301 tariff. As a result, it will now face a combined 35% duty rate (25% + 10%), before any other fees or duties. This compounding effect dramatically increases your landed costs.
Strategic Implication: For importers managing high-tariff categories, the 10% universal tariff stacking effect can push total duty exposure beyond 40-50% on some goods. Calculate your exposure now.
De Minimis Threshold Eliminated: All Parcels Now Subject to Duties
Similarly, in accordance with a recent executive order, the de minimis exemption for low-value goods has been eliminated under the 10% tariff regime:
- Previous threshold: $800 de minimis goods entered duty-free
- New rule: Conversely, all parcels under $800 are now subject to the 10% tariff
Impact: This change affects e-commerce importers, sample shipments, and small-value direct-to-consumer imports significantly. The 10% universal tariff now applies universally—hence its name.
Products & Categories Exempt from the New Tariff
The following goods and categories are exempt from the new 10% tariff. However, understand that exemptions apply specifically to the 10% universal tariff—other tariffs may still apply.
Exemptions by Trade Agreement & Authority
USMCA Goods: Products originating in Canada or Mexico that comply with United States-Mexico-Canada Agreement rules are exempt from the 10% tariff.
Section 232 Tariff Goods: Additionally, goods already subject to Section 232 duties (steel, aluminum, copper, wood, and related products) are exempt from the 10% tariff because they operate under separate statutory authority.
Exemptions by Product Category from the 10% Tariff
The following product categories do not pay the 10% universal tariff:
- Critical minerals and metals: Certain critical minerals, metals used in currency and bullion
- Energy products: Energy and energy-related goods
- Natural resources & fertilizers: Resources that cannot be grown, mined, or produced domestically in sufficient quantities to meet U.S. demand
- Agricultural products: Beef, tomatoes, oranges, and certain other agricultural goods
- Pharmaceuticals: Pharmaceuticals and pharmaceutical ingredients
- Electronics: Certain electronic goods
- Vehicles & parts: Passenger vehicles, certain light trucks, certain medium and heavy-duty vehicles, buses, and specific parts for these vehicles
- Aerospace products: Certain aerospace goods
- Informational materials & travel: Books and informational materials, donations, and accompanied baggage
- Regional trade benefits: Finally, textiles and apparel entering duty-free under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua
Check Carefully: Many of these exemptions have specific conditions. Verify that your goods meet all qualification criteria before assuming the 10% tariff does not apply.
Protect Your Operations: Surety Bond Requirements & Tariff Impact
The Surety Bond Risk from 10% Tariff Stacking
Action Required: Review your customs surety bond coverage immediately—this is not optional.
The implementation of the 10% universal tariff—especially when stacked with existing duties—has the potential to push your duty outlay significantly beyond the value of your current customs surety bond. As a result, a shortfall in surety coverage can delay shipment clearance and create serious compliance risks. Importantly, CBP can assess penalties and hold shipments if your bond value is insufficient.
Three Steps to Protect Your Operations from Tariff & Surety Risk
Recommended steps to address the 10% tariff impact on your customs surety:
First, calculate expected duty exposure on your typical import portfolio. Sum:
- Existing tariffs (Section 301, MFN, Section 232, etc.)
- 10% new tariff (applied to all non-exempt goods)
- Stacking effect where applicable
- De minimis goods now affected ($0-$800)
Next, compare this calculated exposure to your current bond value. Many importers discover their bond is now insufficient after stacking.
Finally, contact your customs broker or surety provider proactively to increase coverage if needed. Act before the system becomes congested in late February.
Why This Matters: Without adequate surety coverage, you risk operational delays and potential regulatory exposure. Moreover, CBP can hold or release goods under protest, creating cash flow problems. Taking action now will protect your import operations and give you peace of mind.
Action Items: What Importers Must Do Now
Effective Immediately (Feb 24):
- All non-exempt imports subject to 10% universal tariff
- Stacking applies with existing tariffs
- De minimis threshold eliminated ($800 goods now taxed)
- IEEPA tariff authority ends simultaneously
Grace Period (Feb 24-28):
- Direct in-transit goods entering before 2/28 exempt
- Goods already in U.S. warehouses are not covered
Duration:
- 10% tariff in effect through July 24, 2026 (150 days)
- Extension requires Congressional vote
Action Items:
- Verify exemption status for your product categories
- Calculate tariff stacking exposure (your goods may face 35%+ duty rates)
- Review and update customs surety bond coverage NOW
- Brief your sourcing and supply chain teams
- Evaluate pricing and landed cost impacts
Need Help Understanding the New Tariff?
For assistance calculating 10% tariff exposure, understanding exemptions, or reviewing customs surety requirements, contact your customs broker or compliance team. You can also consult CBP’s tariff guidance, USITC HTS information, or the Trade Act of 1974 Section 122.
Related Reading:
- CAPE Refund System: Guide to IEEPA Duty Refunds
- IEEPA Ruling: Supreme Court Invalidates Presidential Tariff Authority
This article reflects information current as of February 23, 2026 regarding the 10% universal tariff. Monitor CBP.gov, USITC.gov, and official government sources for updates, including guidance on the potential 15% rate increase and any additional exemptions.
