WHAT’S THE LATEST

The White House issued three new executive actions on February 20, 2026, that immediately affect U.S. importers:

  1. Termination of all IEEPA-based tariffs.
  2. Introduction of a temporary 10% import surcharge under Section 122, effective February 24-July 24, 2026. 
    1. NOTE: While not yet reflected in an updated Executive Order (EO), President Trump stated on February 21 that the tariff would increase from 10% to 15%.
  3. Continuing the suspension of duty free de minimis treatment for all countries.

These actions follow the recent Supreme Court ruling limiting the use of IEEPA as a basis for imposing tariffs. 

On February 22, U.S. Customs and Border Protection (CBP) issued CSMS # 67834313, providing instructions on elimination of de minimis. Per the notice, duties imposed pursuant to IEEPA under prior presidential actions, including all modifications and amendments, will no longer be in effect and will no longer be collected for goods entered for consumption or withdrawn from warehouse for consumption, on or after 12:00 a.m. EST on February 24.

While IEEPA tariffs have been removed, the new temporary surcharge maintains elevated tariff conditions for many importers.

WHAT WE KNOW

IEEPA Tariffs Terminated (Effective February 24)

CBP will update entry software to no longer collect duties under IEEPA for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:00 a.m. EST. 

Tariffs now fully suspended include:

  • All additional duties tied to border related emergency actions (Canada and Mexico)
  • All additional duties tied to synthetic opioid related actions on China
  • All additional duties imposed as reciprocal trade actions
  • All additional duties associated with country specific emergency measures, including those targeting: 
    • Brazil
    • Russia
    • Cuba
    • Iran
    • Venezuela

These IEEPA based duties no longer apply as of February 20.

Section 301 and Section 232 tariffs remain unchanged.

Temporary 10%* Import Surcharge (Effective February 24–July 24)

A temporary 10% ad valorem surcharge was imposed under Section 122 of the Trade Act of 1974, lasting 150 days unless extended by Congress.

*NOTE: While not yet reflected in an updated EO, President Trump said on February 21 the rate will increase from 10% to 15%.

How the surcharge applies:

  • Added on top of Most-Favored Nation (MFN) tariffs
  • Stacks with Section 301 tariffs
  • Does not stack with Section 232

Exemptions are determined by tariff classifications contained in Annex II of the Executive Order. Notable exemptions include:

  • Energy and energy products
  • Pharmaceuticals and pharmaceutical ingredients
  • Critical minerals; selected electronics
  • Aerospace products
  • Passenger vehicles and many auto parts
  • Certain agricultural categories
  • USMCA‑compliant goods from Canada and Mexico
  • CAFTA‑DR‑eligible textiles and apparel
  • Goods already subject to Section 232 tariffs

Additionally, goods that meet the following criteria are exempt from Section 122:

  • Were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the U.S. before 12:01 a.m. EST on February 24; and
  • Are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EST on February 28.
Clarification: No Changes to De Minimis

These two tariff-related executive actions do not modify or reverse the existing suspension of duty‑free de minimis treatment, which remains in effect under prior EOs.

SEKO'S GUIDANCE

We recommend that importers:

  • Review current imports for changes related to IEEPA tariff removal and the new 10% surcharge.
  • Confirm whether goods qualify for exemptions under USMCA, CAFTA‑DR, or other preference programs.
  • Work with your broker on any in‑transit shipments to determine potential eligibility for relief.
  • Maintain full documentation for any entries subject to IEEPA-based duties, as refund or protest pathways—if established—will likely require strict proof of eligibility.
  • Closely monitor upcoming CIT developments, which will determine if, how, and when any relief processes are implemented.

SEKO will continue to provide timely updates as more information becomes available.

QUESTIONS?

SEKO’s trade and compliance experts are available to help assess impacts, review classifications, and map out mitigation strategies. For questions about this ruling or how it affects your supply chain, please contact your SEKO representative directly or email us at hello@sekologistics.com