On February 20, 2026, President Donald J. Trump issued a Proclamation imposing a temporary 10% ad valorem import surcharge on articles imported into the United States, effective February 24, 2026, for a period of 150 days. This action, taken under section 122 of the Trade Act of 1974, is intended to address "fundamental international payments problems," specifically a "large and serious United States balance-of-payments deficit" that is deemed to harm U.S. national interests, including economic and national security.

The proclamation details a significant balance-of-payments deficit, citing a $1.2 trillion goods trade deficit in 2024 and 2025 (a 40% increase in five years), the annual balance on primary income turning negative in 2024 for the first time since 1960, a 2024 current account deficit of 4.0% of GDP (the largest since 2008), and a sharply declining U.S. net international investment position (negative 90% of GDP by the end of 2024). The goal of the surcharge is to stem the outflow of U.S. dollars, incentivize domestic production, correct the deficit, create jobs, and lower consumer costs.

The import duty includes various exemptions for products considered vital to the U.S. economy or already subject to other trade restrictions. These include certain critical minerals, energy products, natural resources, specific agricultural products (e.g., beef, tomatoes, oranges), pharmaceuticals, electronics, certain vehicles and aerospace products, informational materials, goods covered by Section 232 actions, USMCA-compliant goods from Canada and Mexico, and specific textile/apparel articles from DR-CAFTA countries. The President affirmed that these exceptions are consistent with the purposes and limitations of section 122.

On February 20, 2026, President Donald J. Trump issued an Executive Order to continue and revise the suspension of duty-free de minimis treatment for imports under 19 U.S.C. 1321(a)(2)(C). This action is taken under the authority of various acts, including IEEPA, to address ongoing national emergencies previously declared in several Executive Orders concerning illicit drugs, border situations, trade deficits, and perceived threats from foreign governments.

The order notes that while conditions outlined in a prior Executive Order (EO 14324, which suspended de minimis treatment) have occurred—implying previous IEEPA duties were challenged—the Secretary of Commerce has confirmed that adequate systems are now in place to collect applicable duties on shipments sent through the international postal network.

Consequently, the Executive Order revises EO 14324 to ensure that the duty-free de minimis exemption no longer applies to most shipments, regardless of value or origin. Specifically, for international postal shipments that would have qualified for the exemption, a duty equal to the rate established by the Proclamation of February 20, 2026 (Imposing a Temporary Import Surcharge), will be assessed. Transportation carriers or other qualified parties are mandated to collect and remit these duties to U.S. Customs and Border Protection (CBP). These modifications are effective for goods entered for consumption on or after 12:01 a.m. EST on February 24, 2026. The order emphasizes that these actions are necessary to deal with the declared national emergencies.

On February 20, 2026, President Donald J. Trump issued an Executive Order terminating the collection of specific additional ad valorem import duties that were previously imposed under the International Emergency Economic Powers Act (IEEPA). These duties, which stemmed from several Executive Orders issued in 2025 and 2026, were originally put in place to address national emergencies related to illicit drugs, border issues, synthetic opioid supply chains, Venezuelan oil imports, trade deficits, and perceived threats from various foreign governments including Brazil, Russia, Cuba, and Iran.

The order states that "in light of recent events," these particular IEEPA-imposed duties are no longer in effect. However, it explicitly clarifies that all other actions taken under those prior Executive Orders that do not involve IEEPA duties, as well as the underlying national emergencies themselves, remain active. Notably, a separate Executive Order from February 20, 2026, which continues the suspension of duty-free de minimis treatment for low-value shipments, and a Proclamation from the same date imposing a new temporary import surcharge to address international payments problems, are unaffected by this new order. The order directs relevant agencies to immediately cease collecting these specified IEEPA duties.