Section 122 Tariffs Expiring as New Trade Actions Continue – July 22, 2026

Please Note: When evaluating tariff announcements, carefully review each Executive Order, the corresponding Federal Register Notices, and CSMS messages in detail. Consult with your trade attorney or advisor to understand how these measures specifically impact your U.S. FTZ operations.

The 10% tariffs imposed under Section 122 of the Trade Act of 1974 are scheduled to expire on July 24, 2026. However, members should not assume that their expiration will result in a return to the tariff environment that existed before 2025.

The Administration has continued to pursue tariff actions under several other statutory authorities, including Sections 301, 338, and 232. Recent and anticipated developments include:

• Section 301 tariffs on Brazil: On July 22, a new 25% Section 301 tariff took effect on many products of Brazil following USTR’s investigation into several Brazilian acts, policies, and practices. The action includes product-specific exemptions and a limited in-transit provision. Members importing goods of Brazilian origin should carefully review the USTR announcement and the accompanying Federal Register notice to determine whether their goods are covered.
• Section 338 tariffs on Canada: On July 20, the President issued three separate proclamations imposing additional 50% tariffs on certain Canadian products in response to Canadian measures affecting U.S. motor vehicles, alcoholic beverages, and dairy products. The tariffs are scheduled to take effect August 19 and will cover nearly $20 billion in Canadian imports. The proclamations include product-specific coverage and exclusions, rules regarding the application of other duties, and a requirement that covered merchandise admitted into a U.S. FTZ on or after the effective date—unless eligible for domestic status—be admitted in Privileged Foreign status. Members importing Canadian products should review USTR’s summary and links to all three proclamations.
• Forced labor Section 301 investigations: USTR has completed public hearings on proposed responsive actions involving 60 economies concerning their failure to impose or effectively enforce prohibitions on imports produced with forced labor. Final actions, potentially including additional tariffs, are expected to be published soon. Information and related documents are available on USTR’s investigation page.
• Structural excess capacity Section 301 investigations: USTR’s investigations involving 16 economies and structural excess capacity or production in manufacturing sectors remain underway. These investigations could also result in tariff or non-tariff actions. Members should continue monitoring USTR’s investigation page.
• Section 232 actions: Multiple Section 232 tariff actions and adjustments remain in effect or under development across various products and sectors. These measures may have different scopes, exclusions, effective dates, stacking rules, and U.S. FTZ requirements.

The expiration of one tariff authority does not necessarily eliminate duties imposed under another. Members should carefully review the complete text of every applicable action. Particular attention should be paid to product coverage, country of origin, effective dates, in-transit provisions, tariff stacking, exclusions, and any requirements affecting merchandise admitted into or withdrawn from a U.S. FTZ.

NAFTZ will continue monitoring these developments and will share additional updates as CBP, USTR, the courts, and Congress take further action.