Section 122 vs Section 232 vs Section 301: A 2026 Comparison

Section 122 (Trade Act of 1974) is a temporary surcharge capped at 15% for 150 days, currently in effect through July 24, 2026. Section 232 (Trade Expansion Act of 1962) covers national security tariffs (steel, aluminum, copper, pharma effective July 31). Section 301 (Trade Act of 1974) addresses unfair trade practices (China tariffs since 2018). Each has different scope, duration, and stacking rules.

Three tariff statutes drive most current U.S. duty exposure beyond MFN base rates: Section 122 (the global surcharge through July 24, 2026), Section 232 (national security tariffs on specific sectors), and Section 301 (China-focused trade-practice tariffs). They differ in scope, duration, and how they stack with each other.

For SMB importers, understanding which statute applies to which goods, and how the layers interact, drives effective duty calculation and forward-pricing decisions.

Section 122 – temporary, capped, expiring

Section 122 of the Trade Act of 1974 authorizes the President to impose a temporary import surcharge of up to 15% ad valorem for up to 150 days to address fundamental international payments problems. The current measure took effect February 24, 2026 and expires July 24, 2026 unless Congress acts.

Section 122 applies broadly – most non-USMCA, non-Annex-II goods. Generic stacking rule: Section 232-covered goods generally do not stack with Section 122; the importer pays Section 232 in lieu.

Section 232 – sectoral, permanent, national-security based

Section 232 of the Trade Expansion Act of 1962 authorizes tariffs based on national security findings. Steel and aluminum since 2018; copper added 2026; pharmaceuticals effective July 31, 2026 with tiered rates. MedTech and semiconductor investigations in flight.

Section 232 has no statutory duration cap. Country-specific exemptions and quota systems can apply. Derivatives expansion brings downstream products into scope in some configurations.

Section 301 – China-focused, ongoing since 2018

Section 301 of the Trade Act of 1974 addresses unfair foreign trade practices. The current Section 301 program targets China-origin goods (Lists 1-4A) at rates of 7.5-25%. Active since 2018; periodic exclusion processes have applied.

Section 301 stacks on top of base MFN duty. Section 301 + Section 122 both apply to China-origin goods through July 24 (15% Section 122 + Section 301 rate + base MFN).

Stacking rules – how the layers combine

Worked example: a Chinese-origin steel article. Base MFN rate (e.g., 2.9%) + Section 232 steel (25%) + Section 122 (NOT applied, Section 232 governs) + Section 301 (often applies separately to Chinese-origin goods) = effective rate well above MFN.

For non-Section-232 goods from China: base MFN + Section 122 + Section 301. For non-Section-232 goods from USMCA partners: base MFN only (USMCA-qualifying exempt from Section 122). For non-Section-232 goods from non-China non-USMCA: base MFN + Section 122.

Frequently asked questions

Can all three apply to the same import?

Generally no. Section 232 typically replaces Section 122 (no stacking). Section 232 + Section 301 do stack for China-origin Section-232-covered goods. The exact stack depends on country of origin and HS classification.

Which is most likely to expire?

Section 122 has a hard statutory expiration July 24, 2026. Section 232 and Section 301 have no expiration; they continue indefinitely unless rescinded.

How does USMCA interact with these?

USMCA-qualifying goods are exempt from Section 122. USMCA does not exempt from Section 232 or Section 301 for goods within those statutes’ scope.

Where do I see the actual rates on my entry?

CBP Form 7501 boxes 35-37 show the duty breakdown by line. Each statute appears as a separate line item.

Are Section 232 and Section 301 refundable like IEEPA?

No. The Supreme Court ruling addressed only IEEPA. Section 232 and Section 301 remain in force; only IEEPA-attributable duties are refundable through CAPE.