Section 122 expires tonight. Here’s what’s replacing it (and what isn’t) 

Two separate tariff actions are landing in the same week, and both change what you pay to bring goods into the country.

At 12:01am ET on July 24, the Section 122 global tariff — the 10% surcharge that replaced the IEEPA tariffs the Supreme Court struck down in February — expires by statute. It cannot run past 150 days without an act of Congress, and Congress hasn’t extended it. Since taking effect February 24, CBP’s own trade data shows the tariff has generated roughly $31 billion in collections.

Three days before that, on July 20, the administration signed three proclamations imposing 50% tariffs on Canadian dairy, alcoholic beverages, and motor vehicles under Section 338 of the Tariff Act of 1930 — a statute that hasn’t seen major use since the 1930s and 40s. In Senate Finance Committee testimony on July 22, U.S. Trade Representative Jamieson Greer defended the trade posture, citing the $1.2 trillion U.S. trade deficit as a primary driver for structural tariff shifts and confirming that formal announcements on replacement measures are imminent.

If you import from Canada, or you’re tracking what comes next on the broader tariff picture, here’s what’s actually changing.

Section 122 authorizes temporary import surcharges of up to 15% to address a balance-of-payments problem, capped at 150 days. That clock runs out tonight. USTR Ambassador Greer confirmed in his July 22 Senate testimony that the administration is preparing to transition to durable duties under Section 301 authority, tied to an active investigation covering forced labor across roughly 60 economies.

Under the USTR proposal, replacement duties will follow a two-tier framework:

Two things matter here for landed cost planning. First, Section 301 duties stack on top of existing tariffs — Section 232 steel and aluminum duties, AD/CVD, China Section 301 duties, base HTS rates — they don’t replace them the way Section 122 replaced the old IEEPA tariffs. Second, a straight renewal of Section 122 itself is legally shakier than it looks: the Court of International Trade already ruled in May that the administration’s use of Section 122 exceeded what the statute’s “balance-of-payments deficit” language actually authorizes. A second 150-day declaration would likely draw the same challenge.

Practically: don’t assume July 24 means a tariff holiday. Assume the rate gets replaced by something close to it, on a different legal footing, within days.

The Canada tariffs are narrower than the “50% across the board” headline suggests. In testimony, USTR Greer characterized the measures as “very tailored” sector-specific actions targeting dairy, alcoholic beverages, and motor vehicles where the administration argues Canada restricts U.S. commercial access. Energy, potash, fish, critical minerals, and goods already under Section 232 are exempted. USTR also highlighted the administration’s broader objective to leverage these targeted measures toward bilateral trade agreements with Canada and Mexico by late 2026.

Crucially for importers, USMCA eligibility does not automatically exempt a product from these new duties — that’s the detail worth double-checking against your own import mix. The tariffs take effect 30 days after the July 20 proclamations, providing a brief window before duty enforcement begins.

What makes Section 338 worth watching beyond Canada: it’s a tool with no investigation requirement and no national security finding needed. If it holds up to legal challenge here, it’s a template the administration could reach for again on other trading partners without the process delays Section 301 or Section 232 require.

You’ve got three regimes moving at once: one expiring, one replacing it under a two-tiered Section 301 framework, and one newly revived and tailored to specific Canadian commodity sectors. For importers, that means:

Confirm which of your entries were riding on Section 122 and get ready for a rate that may shift between 10% and 12.5% depending on origin country forced-labor status. Check your Canadian-sourced dairy, alcohol, and vehicle imports against the Section 338 exemption list, and don’t assume USMCA origin protects you here. And if you’re not sure which HTS lines and origin countries you have exposure on across all of this, that’s the conversation to have with your broker this week, not after the next proclamation lands.

This is the kind of week that separates companies with clean, entry-level documentation from companies that don’t have it. When tariff authority shifts this fast — three different legal bases inside five months — the companies keeping pace are the ones who can pull their HTS classifications and origin data on demand, not the ones reconstructing records after the fact.

Sources: White House — Fact Sheet: President Donald J. Trump Imposes Additional Tariffs on Canada (July 20, 2026); U.S. Senate Finance Committee — Hearing on U.S. Trade Policy & USTR Priorities (Testimony of Ambassador Jamieson Greer) (July 22, 2026); U.S. Customs and Border Protection — Trade Statistics; Customs & International Trade Law Blog — Trump Invokes Section 338 to Impose Additional Duties on Canadian Imports (July 21, 2026); Transport Topics — Trump’s Section 122 tariffs expire July 24: Then what?; Global Trade Alert — Section 338: The Return of the Authority.

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