Section 122 Tariffs Imposed; Exemptions for Foods
On Friday, February 20, 2026, the United States Supreme Court in a 6-3 decision, struck down the tariffs imposed by the Trump Administration under the International Emergency Economic Protection Act (IEEPA). These included the “Liberation Day” reciprocal tariffs that varied on a country-by-country basis and imposed additional rates of up to 49% as well as additional tariffs imposed on Canada, Mexico and China related to Fentanyl trafficking, and additional tariffs imposed on India and Brazil.
Within hours of the ruling President Trump announced he would be imposing worldwide tariffs under Section 122 of the Trade Act. While the President said these tariffs would be imposed at 15%, they have only been set at 10% thus far. The legality of the Section 122 action is also likely to be challenged.
On Tuesday, February 24, 2026, U.S Customs and Border Protection stopped collecting the IEEPA tariffs and began collecting the Section 122 Tariffs.
How are tariff rates impacted by the ruling and Section 122 action?
For countries/trading blocs that negotiated lower reciprocal rates with the administration the rates are going to increase for others they will decrease. For example:
| HTS# | Commodity | Country of Origin | Base Rate | Old Rate | New Rate |
| 0710.10.0000 | Frozen potatoes | France/EU | 14% | 15% (Capped) | 24% |
| 2103.20.2000 | Tomato Ketchup | United Kingdom | 6% | 10% (Capped) | 16% |
| 2103.10.0000 | Soy Sauce | Thailand | 3% | 22%(19%+3%) | 13% |
| 2008.30.4210 | Mandarin Oranges, Prepared in sugar, in quota | China | Free | 45% | 25% |
Are the Section 122 Tariffs Here to Stay?
No. Section 122 gives a President temporary authority to impose tariffs for 150 days. After that period Congress must authorize an extension. The Administration’s use of this authority is also likely to be challenged in court.
Do the Section 122 Tariffs Exempt Certain Food Products?
Yes. Please see our update here on the food products exempted.
What “Trump Tariffs” Remain Effective?
Section 301, Section 201 and Section 232.
Section 301 has the biggest impact on the food and general merchandise retailers as the tariffs broadly impact food and general merchandise from China. Section 201 and 232 have much narrower product-specific scopes.