Lara GuevaraSupply Chain expert (Product and Service)

Unauthorized Tariffs Replaced With Global Surcharge

19 Aug 2026 · 1 min

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The Supreme Court ruled in February that tariffs under the International Emergency Economic Powers Act were never authorized. The administration replaced them with a temporary global surcharge under Section 122, which expired July 24. New country-specific duties under Section 301 are now phasing in, making pricing models built on the old rates potentially outdated.

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Back in February, the Supreme Court ruled that tariffs imposed under a law called IEPA were never authorized in the first place. Reset one: the administration replaced them within days with a Section 122 surcharge, a flat global rate. Reset two: here's what almost everyone missed. Section 122 has a legal expiration built into it, 150 days, no extension without Congress, and that clock ran out on July 24th. And reset four is already underway: a new set of duties under Section 301, phasing in country by country at different rates depending on where you source. So if you built your pricing model in March of the Section 122 number and haven't touched it since, that number is not what you're paying today. Might be higher, might be lower. It's different, and different is the only thing I can promise you without seeing your numbers.