The 20 February 2026 pivot. The U.S. Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump (20 Feb 2026) that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs, striking down the 2025 reciprocal-tariff regime. The White House responded the same day with a Presidential Proclamation invoking Section 122 of the Trade Act of 1974, a 150-day statutory authority to impose a temporary import surcharge of up to 15% to address fundamental balance-of-payments issues.
What survived, what didn't. Section 301 tariffs (China-specific, in force since 2018) are unaffected — they were imposed under the Trade Act, not IEEPA, and were not at issue in the Supreme Court case. Section 232 tariffs (steel, aluminum, autos) similarly remain. The de minimis exemption (≤ $800 per shipment) was permanently narrowed on 2 May 2025 (from China-origin shipments) and 29 August 2025 (globally), and that rule stands.
| Tariff layer | Authority | Current rate (mid-2026) | WanLong-relevant HS exposure |
|---|---|---|---|
| Section 301 — List 1/2/3 | Trade Act 1974 §301 | 7.5% | HS 3923, 7013, 7323, 7615 |
| Section 301 — List 4A | Trade Act 1974 §301 | 7.5% | HS 3924, 7013, 9405 (organisers) |
| Section 301 — List 4B | Trade Act 1974 §301 | 15% | HS 3924.10, 7013.37 |
| Section 232 — Steel & aluminium derivatives | Trade Expansion Act 1962 §232 | 25% / 10% | HS 7323.93 (stainless kitchen), 7615.10 |
| Section 122 surcharge (Feb 2026 Proclamation) | Trade Act 1974 §122 | 10% (≤ 150 days) | All China-origin except select exemptions |
| De minimis §321 — China origin | Tariff Act 1930 §321 | Revoked 2 May 2025 | All sub-$800 China shipments |
Effective tariff stack — worked example. A 20-foot container of 304 stainless flatware (HS 8211.91, China-origin, FOB value $48,000) lands in Long Beach with the following 2026 cost stack: Section 301 List 1 = 7.5% ($3,600); Section 232 derivative surcharge on metal content = 25% of the metal portion ($4,200); Section 122 = 10% on dutiable value post-301 ($5,520); MPF 0.3464% capped at $634. Final landed duty: ~$13,920 → 29% of FOB. By contrast, a Vietnam-origin shipment of the same product pays Section 232 only: ~$4,200 → 8.75% of FOB.
What to do in 2026 contracts. (1) Specify Incoterms DDP for U.S. customers and lock duty rates by HS code at quote date; USTR revises list annexes quarterly. (2) Consider first port of entry selection — Section 232 derivative tariffs are assessed at port of unloading, so routing through Los Angeles/Long Beach sometimes yields different Chapter 99 treatment than Norfolk. (3) For U.S. distributors reselling under their own brand, ensure the supplier provides an importer-of-record letter so the buyer can claim drawback or FTZ benefits. (4) The Section 122 surcharge expires on 19 July 2026 (150 days) unless extended; the U.S. House Ways and Means Committee has signalled it will not renew, but a Section 338 GSP-style substitute is under discussion.
WanLong practice. We provide U.S. importers with HS-coded pro-forma invoices, a quarterly Section 301 / 232 / 122 update email, and a free landed-cost calculator reflecting the layering above. Source: USTR Section 301 page; CBP Federal Register notices Q1 2026; U.S. Supreme Court docket 24-1287 (Feb 20, 2026).
Source: U.S. Supreme Court Learning Resources, Inc. v. Trump, No. 24-1287 (Feb 20, 2026); Presidential Proclamation 11088 (Feb 20, 2026); USTR Section 301 list annexes (Q2 2026); CBP Federal Register Vol. 91 No. 35–50; H.R. Rep. 118-512 (Section 338 substitute discussion)
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