Washington, February 21, 2026 — President Donald J. Trump has signed a proclamation imposing a temporary 10 percent import surcharge on most goods entering the United States, citing what the administration describes as “large and serious” balance-of-payments deficits threatening the nation’s economic and national security interests.
The measure, announced Friday, will take effect at 12:01 a.m. EST on February 24, 2026, and remain in place for 150 days, expiring on July 24, 2026, unless extended by Congress. The action was taken under Section 122 of the Trade Act of 1974, which authorizes the President to impose temporary import restrictions during periods of fundamental international payments problems.
In the proclamation, the White House stated that the United States is currently facing significant balance-of-payments challenges, including a persistent trade deficit, a negative balance on primary income, and a sharply deteriorating net international investment position.
According to data referenced by the administration, the U.S. goods trade deficit reached approximately $1.2 trillion in both 2024 and 2025. Additionally, the current account deficit in 2024 stood at 4.0 percent of GDP — the largest annual deficit since 2008.
The proclamation asserts that these trends reflect a structural imbalance in international payments and justify emergency trade measures. “Fundamental international payments problems exist,” the President stated, adding that special import restrictions are required to address the situation.
Scope of the Surcharge
The 10 percent ad valorem duty will apply broadly to imported articles but includes several significant exemptions. Among the excluded categories are:
Certain critical minerals
Energy and energy products
Pharmaceuticals and pharmaceutical ingredients
Specific agricultural products, including beef, tomatoes, and oranges
Passenger vehicles and certain automotive parts
Aerospace products
Certain electronics
Goods from Canada and Mexico qualifying under the USMCA framework
Textile and apparel products from specific Central American countries under the Dominican Republic-Central America Free Trade Agreement
Products already subject to tariffs under Section 232 of the Trade Expansion Act of 1962 will not face additional surcharge layers beyond existing duties.
Administration’s Rationale
The White House argued that the surcharge is necessary to correct what it calls a “highly atypical” and deteriorating net international investment position, which stood at negative 90 percent of GDP at the end of 2024.
Officials further stated that the United States’ balance on primary income turned negative for the first time in decades, eliminating what had previously served as a stabilizing factor offsetting trade deficits.
The administration emphasized that the action is not intended to protect specific domestic industries but to address macroeconomic imbalances and safeguard national interests.
Monitoring and Potential Adjustments
The U.S. Trade Representative has been directed to monitor the impact of the surcharge and advise the President on whether further action, suspension, or modification is warranted. U.S. Customs and Border Protection will implement the tariff adjustments through modifications to the Harmonized Tariff Schedule.
The proclamation also includes a severability clause, ensuring that if any exemption is invalidated, the remainder of the surcharge remains in effect.
The move marks another assertive trade action by the Trump administration amid broader efforts to recalibrate U.S. trade policy and address long-standing structural deficits in international trade and payments.
