At 12:01 a.m. Eastern on Friday, July 24, the 10% Section 122 import surcharge expired by operation of law. The surcharge had been in effect since February 24, 2026, running for exactly 150 days, stacking on top of existing MFN, Section 301, and Section 232 duties on essentially every import that wasn't USMCA-qualifying, a pharmaceutical, an energy product, or on the short list of specific exemptions. As of entries filed today and later, that 10% layer is no longer being collected by CBP.
For a brand importing $500,000 worth of goods per year, 150 days of a 10% surcharge on a meaningful portion of that represents real money. Today is the day that specific cost disappears from your landed cost stack.
The catch, and there's always a catch, is that the administration has already signaled it's replacing the Section 122 layer with Section 301 duties. Some of those replacements may arrive shortly. The 10% is gone today; what comes next, and when, is still in motion.
What the Expiration Changes
The Section 122 surcharge was collected under HTS subheading 9903.03.01 at 10% of customs value, despite the administration's initial announcement of a 15% rate. Starting with entries filed on or after July 25, CBP no longer collects that line item.
The duty is not waived retroactively. Everything that cleared before today still owed the 10%, and those entries aren't being refunded through the expiration itself. Refund rights on past entries depend on the outcome of separate litigation over the earlier IEEPA tariffs, a different legal proceeding with a different timeline.
What changes immediately is your forward-looking landed cost. If you were modeling imports at MFN + Section 301 (for China-origin goods) + 10% Section 122, your post-July 24 model drops that last layer. For Vietnam-origin goods, for example, that's a meaningful improvement: MFN rates on many consumer goods from Vietnam are in the 5% to 15% range with no Section 301 stack, so removing the 10% Section 122 layer reduces the total duty burden by about a third. For China-origin goods, the reduction is proportionally smaller because Section 301 rates of 7.5% to 100% dominate the total rate regardless.
What's Already Replacing It
Here is where sellers need to pay attention. The US Trade Representative has already signaled that Section 301 duties based on a forced-labor investigation are being prepared to cover approximately 60 economies at rates of 10% to 12.5%. That action has gone through public comment and is in post-hearing review.
It has not been finalized, but the administration has said publicly to expect action soon. If the Section 301 replacement lands at rates similar to the Section 122 surcharge, the net cost savings for many importers will be limited.
A 25% Section 301 tariff on goods from Brazil also took effect on July 22, two days before the Section 122 expiration. That one is already in force, and it applies to a broad range of Brazilian goods including sugar, paper, and certain steel and agricultural machinery, with exemptions for specific HTS lines. If any of your sourcing runs through Brazil, your landed cost structure changed mid-week regardless of what happens with Section 122.
One other change happened alongside the Section 122 expiration today: the de minimis exemption for goods shipped through the US Postal Service ended. Previously, goods valued under $800 shipped via USPS could enter the US duty-free. As of today, all USPS-carried imports face standard duties.
This has limited direct impact on most domestic Amazon sellers, but it meaningfully shifts the competitive landscape. Low-cost direct-to-consumer sellers who relied on postal-route de minimis shipping now face the same duty stack that domestic FBA brands pay. For sellers who've been undercut by overseas sellers using that route, this is a structural change in the competitive cost environment.
What to Do With Your Landed Cost Model Today
The practical steps are straightforward. First, pull your import entries from the past 150 days and confirm the total you paid in Section 122 duties. That number is the maximum you might recover if the pending IEEPA litigation results in a refund; document it cleanly so you have it if that question becomes relevant. Preservation of records matters more than action right now on the retroactive question.
Second, rebuild your forward landed cost model with the Section 122 line removed. For each major ASIN in your catalog, recalculate landed cost using MFN plus Section 301 (if China-origin) plus Section 232 (if steel or aluminum derivatives are involved). Don't assume the 10% just disappears cleanly for all your products. Verify the Section 301 rate for your specific HTS codes, because those vary widely.
Third, if your pricing on Amazon was set assuming the 10% import cost, today is the moment to decide whether to adjust retail prices, hold them and improve margins, or reallocate the cost savings toward advertising. The window between the Section 122 expiration and any replacement duties landing is the best opportunity you'll have to improve your cost position without a corresponding increase in competitive pressure. Given that the administration has signaled replacements are coming, that window may be short. You can read more about how we approach pricing and margin strategy as part of Amazon brand management.
The Bigger Picture for Q4 Planning
Amazon's Q4 inventory cutoff for Prime Big Deal Days (estimated October 6-7) is roughly ten weeks out. If you've been holding back on ordering Q4 inventory because of uncertainty around the Section 122 rate, today removes one layer of that uncertainty.
The rate is gone. If a replacement lands at a similar rate, you'll know it before your October cutoff. Building your Q4 inventory plan on the post-Section 122 cost structure is more accurate than building it on the five-month average that included the surcharge.
This is also a good moment to revisit sourcing decisions. If Section 301 replacements are coming at 10% to 12.5% on roughly 60 economies, the relative advantage of USMCA-qualifying suppliers from Canada and Mexico holds up well: those entries aren't covered by either Section 122 or the proposed Section 301 replacement actions based on the trade practices rationale. Suppliers you've been evaluating in those markets may look meaningfully better in the post-July 24 duty environment than they did three months ago.
If you'd like help thinking through how today's tariff changes interact with your catalog's sourcing mix and your Q4 inventory strategy, schedule a call and we'll walk through the numbers together.