Section 122 Tariff Deadline: What Happens on July 24, 2026?

The Section 122 baseline tariff is set to expire on July 24, 2026 — but a federal court already struck it down in May. Here's what's actually happening, what it means for your household bills, and what tariff costs remain regardless of the court ruling.

What Is Section 122?

Section 122 of the Trade Act of 1974 gives the President authority to impose a temporary tariff of up to 15% for up to 150 days to address a "large and serious" balance-of-payments deficit. The Trump administration used this authority in 2025 to apply a broad baseline tariff across imports from most countries.

Under the statute, the tariff can only run for 150 days — which puts the expiry at July 24, 2026 — unless Congress votes to extend it. That extension has not yet happened.

The May 2026 Court Ruling

Before the July 24 deadline became the main story, the US Court of International Trade struck down the Section 122 tariffs in a 2-1 ruling on May 7, 2026. The majority held that the administration had not adequately demonstrated a "large and serious" balance-of-payments deficit as required by the statute.

The administration is expected to appeal the ruling to the Court of Appeals for the Federal Circuit. While the appeal is pending, legal experts at Skadden, PwC, and Holland & Knight have noted that the tariffs remain in effect during the appellate process — meaning households are still paying them.

What Tariff Costs Remain Regardless?

This is the critical point most news coverage misses. Even if Section 122 is struck down permanently or expires on July 24, the majority of household tariff costs come from other mechanisms that are entirely unaffected:

• Section 301 tariffs on Chinese goods — covering 76 separate product determinations across electronics, clothing, toys, appliances, and more. These do not expire in July and are not affected by the court ruling.
• Section 232 tariffs on steel and aluminum — these are permanent national security tariffs that flow through to auto prices, appliances, and construction costs.
• Country-specific tariff actions — separate bilateral tariff actions against specific trading partners continue independently.

Yale Budget Lab estimates that Section 301 alone accounts for more than 60% of the average household's tariff cost. Section 122's expiry or invalidation would reduce bills, but not eliminate them.

Category-by-Category: What Changes If Section 122 Ends?

• Groceries — Minor reduction. Most food is domestically produced. Imported produce, coffee, and seafood see small price relief.
• Clothing — Partial reduction. Most clothing tariffs on Chinese goods are Section 301, not Section 122. Limited price relief expected.
• Electronics — Partial reduction. Section 301 covers most Chinese electronics. Section 122 expiry may reduce costs on non-Chinese electronics slightly.
• Auto — Minor reduction. Section 232 steel and aluminum tariffs (unaffected) are the dominant cost driver for vehicle prices.
• Household goods — Moderate reduction. Some relief on goods from countries covered only by Section 122 (not Section 301).

What Should You Watch For?

Three scenarios are possible before July 24:

• Congressional extension — Congress votes to extend Section 122 authority. Household tariff costs remain unchanged.
• Statutory expiry without extension — Section 122 lapses. Partial price relief over 3–6 months as import prices adjust. Section 301 and 232 costs remain.
• Alternative authority invoked — The administration declares a national emergency under IEEPA (International Emergency Economic Powers Act) to maintain equivalent tariffs under different legal authority. Costs unchanged.

We'll update this page and the calculator the moment any of these scenarios plays out. Sign up for email updates below to be notified immediately.