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Tariff Policy Guide · June 2026

Reciprocal Tariffs: From Liberation Day to the Supreme Court — and the 10% That Replaced Them

On April 2, 2025 — "Liberation Day" — President Trump imposed country-specific reciprocal tariffs on virtually every US trading partner, with China peaking at 145%. On February 20, 2026 the Supreme Court struck the entire stack down. It was replaced the same day by a flat 10% Section 122 surcharge. Here's the full story and what it means for your imports now.

Current status — June 2026

The reciprocal tariffs are dead law — struck down by the Supreme Court February 20, 2026. Nearly all origins now pay a flat 10% Section 122 surcharge (USMCA-qualifying Canada/Mexico goods 0%; Section 232-covered goods exempt). The surcharge expires July 24, 2026 unless Congress extends it, and is under Federal Circuit appeal — check CBP for the latest.

Nearly all origins

10%

Section 122 surcharge

China surcharge

10%

was 145% pre-ruling

USMCA countries

0%

Canada/Mexico qualifying

Struck down

Feb 20

SCOTUS ruling 2026

The Full Timeline: Liberation Day to Now

April 2, 2025

Liberation Day

President Trump signs executive orders imposing country-specific 'reciprocal tariffs' citing decades of trade imbalances. China: +34%. EU: +20%. Vietnam: +46%. Japan: +24%. Effective April 9.

April 4, 2025

China Retaliates

China announces 34% retaliatory tariffs on US goods. Trade war escalation begins. Markets fall sharply.

April 9, 2025

90-Day Pause

Trump announces a 90-day pause for most countries, reducing all reciprocal tariffs to a 10% baseline. China is explicitly excluded — its rate is raised to 84% in response to retaliation.

April 11, 2025

China Rate: 145%

After China raises its retaliatory rate to 84%, the US raises China's tariff to 145% combined (34% reciprocal + 7.5–25% §301 + additional surcharges). The highest US tariff rate in a century.

May 12, 2025

Geneva Deal — US-China Pause

US and China reach a 90-day agreement in Geneva. US reduces China's reciprocal tariff from 145% to ~30% combined. China reduces from 125% to ~10%. Both sides agree to further talks.

Feb 20, 2026

SCOTUS Strikes Down IEEPA Tariffs

The Supreme Court rules the entire IEEPA tariff stack — reciprocal and fentanyl tariffs alike — exceeded the President's statutory authority. Every Liberation Day rate becomes dead law overnight.

Feb 24, 2026

Section 122 Replacement: Flat 10%

A flat 10% import surcharge under Section 122 of the Trade Act of 1974 takes effect on nearly all origins. No electronics carve-out; Section 232-covered goods exempt; USMCA-qualifying Canada/Mexico goods not charged. Statutory limit: 150 days, expiring July 24, 2026 unless Congress extends.

May 7, 2026

CIT Rules Section 122 Invalid

The Court of International Trade holds the Section 122 proclamation invalid — but the injunction covers only the three plaintiff importers. The government appeals to the Federal Circuit; the 10% surcharge keeps being collected from everyone else.

Country Rates: Liberation Day vs. Today's Section 122 Surcharge

CountryApr 2 RatePaused RateCurrent
🇨🇳China34%No — escalated10%*
🇪🇺EU20%10% baseline10%†
🇻🇳Vietnam46%10% baseline10%†
🇮🇳India26%10% baseline10%†
🇯🇵Japan24%10% baseline10%†
🇰🇷South Korea25%10% baseline10%†
🇹🇼Taiwan32%10% baseline10%†
🇹🇭Thailand36%10% baseline10%†
🇨🇦Canada25%USMCA exempt0%/10%‡
🇲🇽Mexico25%USMCA exempt0%/10%‡
🇬🇧UK10%10% baseline10%†
🇦🇺Australia10%10% baseline10%†

* China: flat 10% Section 122 surcharge since February 24, 2026. Section 301 (7.5–25%) applies additionally. Combined rates for most Chinese goods: 17.5–35%+.

† Flat 10% Section 122 surcharge, effective February 24 – July 24, 2026 (unless Congress extends). Plus MFN rates; §232 steel/aluminum goods are exempt from the surcharge.

‡ Canada/Mexico: USMCA-qualifying goods 0%; non-USMCA goods pay the 10% Section 122 surcharge (the old 25% IEEPA orders were struck down).

What This Means for US Importers

China's duty burden dropped sharply — but didn't vanish

Chinese goods still carry the highest stack of any major sourcing country: §301 surcharges (7.5–25%) + the 10% Section 122 surcharge + MFN rates. But that's a fraction of the 145% peak, which changes the diversification math — re-run your Vietnam/India/Mexico comparisons with current rates.

You may be owed IEEPA refunds

If you paid reciprocal or fentanyl IEEPA tariffs in 2025–early 2026, the Supreme Court ruling opened the door to refunds via post-summary corrections and protests. Deadlines are strict — review your entry data with your broker now.

USMCA is still the best deal in the world

Canada and Mexico at 0% under USMCA are unbeatable — USMCA-qualifying goods don't pay the Section 122 surcharge at all. If you can certify USMCA origin, you're completely insulated from the 10% that applies to nearly everyone else.

The 10% surcharge is now the global floor — electronics included

Even historically duty-free categories pay the flat 10% Section 122 surcharge, and unlike the old IEEPA regime there is no electronics carve-out. Only Section 232-covered goods (steel, aluminum, autos) are exempt. Verify with your customs broker.

Reciprocal Tariffs — Frequently Asked Questions

Country-Specific Tariff Guides

Tariff policy is evolving rapidly. This guide reflects the best available information as of June 2026 based on court rulings, executive actions, CBP guidance, and USTR announcements. Rates may change. Always verify with a licensed customs broker before filing import entries.

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Quick Reference — 2026

  • Nearly all origins: +10% Section 122
  • China: 10% S122 + §301 (7.5–25%)
  • USMCA (Canada/Mexico): 0%
  • §232 Steel: +25% all origins
  • §232 Aluminum: +10% all origins
  • §232-covered goods: S122-exempt
  • S122 expires Jul 24, 2026 unless extended
  • MPF: 0.3464% on all entries
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