Dear Customers, Colleagues, and Friends,
We are issuing this advisory to inform you of significant tariff changes taking effect at 12:00 a.m. ET on February 24, 2026.
1. IEEPA Tariffs Officially Ending
U.S. Customs and Border Protection (CBP) has confirmed that all tariffs imposed under IEEPA authorities will cease to be collected effective 12:00 a.m. ET on February 24, 2026
This includes duties previously imposed under multiple Executive Orders related to:
- Canada and Mexico border tariffs
- China fentanyl-related tariffs
- Country Specific Reciprocal tariffs and baseline IEEPA tariff of 10%
- Brazil tariffs, Russian Federation tariffs, and Venezuelan oil-related tariffs
Importantly, this change affects IEEPA duties only and does not impact Section 232, Section 301, or other trade remedy duties.
2. New Section 122 Temporary Import Surcharge
In response, the White House has issued a proclamation imposing a temporary import surcharge under Section 122 of the Trade Act of 1974.
- The surcharge is reported as 10% ad valorem BUT President Trump has issued a statement that could cause this amount to be implemented at 15%
- It is expected to take effect 12:01 a.m. ET on February 24, 2026
- The measure is described as temporary (150 days) but do not consider this temporary as the Presidential administrations agenda is clear.
- CBP has not yet issued an official CSMS message implementing this Section 122 tariff
- No country-specific scope clarification has been released
- No stacking guidance has been issued
We expect official CBP implementation guidance after hours tonight, which likely means we will not have operational clarity until tomorrow morning.
3. How We Are Handling Entries Today (Fed 23rd 2026)
- Because the IEEPA tariffs are ending at midnight and a new Section 122 tariff is expected immediately thereafter:
- We will be reviewing and filing entries on a case-by-case basis
Filing decisions will depend on:
- Country of origin
- Entry timing (before vs. after midnight ET)
- Whether existing Section 232 or 301 duties apply
- Programming status in ACE
- Comparison of current IEEPA reciprocal tariffs in effect currently through today and expected Section 122 tariff tomorrow
Until CBP formally implements the Section 122 measure, we must wait for operational confirmation before assessing how the new surcharge will be transmitted in entry summaries.
4. What to Expect + Our Recommendation
Given the rapid transition from IEEPA tariffs ending at midnight to the anticipated implementation of the Section 122 surcharge, we will continue reviewing and filing entries carefully on a case-by-case basis, depending on country of origin, timing of entry, and applicable duty programs. At this stage, we recommend a measured “wait and see” approach while we monitor for official CBP guidance. Please be assured that our team is actively tracking developments and will act in your best interest when filing entries to ensure compliance while minimizing unnecessary duty exposure.
We will issue another update as soon as official CSMS implementation instructions are released.
Sincerely, Your friends at Krenz and Hannan International