WASHINGTON, D.C. — Most goods imported into the United States will face a new 10% tariff starting February 24 under a presidential proclamation aimed at reducing what the White House calls a “large and serious” international payments deficit.
What This Means for You
- Most imported goods will carry an additional 10% duty for 150 days starting February 24.
- Certain products — including energy, pharmaceuticals, some foods, vehicles, and USMCA-compliant goods from Canada and Mexico — are exempt.
- Small international shipments that previously entered duty-free will continue to face customs charges.
What The President Ordered
President Donald J. Trump signed a proclamation Friday imposing a temporary 10% “ad valorem” import duty — meaning the tariff is calculated as a percentage of the product’s value — on most articles entering the United States.
The surcharge will remain in effect for up to 150 days, expiring July 24 unless extended by Congress.
The action is authorized under Section 122 of the Trade Act of 1974, a federal law that allows the president to impose temporary import restrictions when the United States faces “fundamental international payments problems.” That term refers to significant imbalances in how money flows into and out of the country through trade, investment, and financial transfers.
The White House said the measure is intended to reduce the country’s balance-of-payments deficit — a broad economic measure that tracks trade in goods and services, income from overseas investments, and money transfers such as remittances.
According to administration data cited in the proclamation:
- The U.S. goods trade deficit reached $1.2 trillion in 2024.
- The current account deficit totaled 4.0% of gross domestic product in 2024, the highest share since 2008.
- The nation’s net international investment position — the difference between U.S.-owned assets abroad and foreign-owned assets in the U.S. — stood at negative $26 trillion at the end of 2024.
Administration officials argue those figures show a structural imbalance that requires temporary import restrictions.
What Is Exempt
The proclamation excludes several categories of goods from the 10% surcharge, including:
- Certain critical minerals and energy products
- Pharmaceuticals and pharmaceutical ingredients
- Some agricultural products, including beef, tomatoes, and oranges
- Passenger vehicles and certain trucks and buses
- Aerospace products
- Books and other informational materials
- Goods that qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement (USMCA)
- Certain textiles and apparel under the Dominican Republic-Central America Free Trade Agreement
Goods already subject to tariffs under Section 232 of the Trade Expansion Act — a national security trade provision — are also excluded from the new surcharge.
Small Shipments Remain Dutiable
In a separate executive order issued the same day, the president continued the suspension of the “de minimis” exemption.
The de minimis rule previously allowed low-value shipments — generally $800 or less — to enter the United States duty-free with minimal paperwork. Under the order, those shipments will continue to be subject to applicable duties, including the new 10% surcharge when applicable.
U.S. Customs and Border Protection will collect the duties, and federal agencies are directed to update the Harmonized Tariff Schedule — the official list of U.S. import duty rates — to reflect the changes.
Ending Certain Prior Tariffs
At the same time, the president signed another executive order terminating additional tariffs that had been imposed under the International Emergency Economic Powers Act (IEEPA) through several prior executive orders.
Those earlier measures, which addressed issues including border security, synthetic opioids, and certain foreign policy concerns, had added duties on specific imports from targeted countries.
Under the new order, those IEEPA-based “additional ad valorem duties” will no longer be collected. However, the underlying national emergency declarations remain in effect, and tariffs imposed under other authorities — including Sections 232 and 301 of federal trade law — are unchanged.
Administration’s Rationale
The proclamation states that the United States faces “fundamental international payments problems,” including persistent trade deficits and a declining net international investment position.
Administration advisors concluded that a temporary surcharge on imports is required to address those imbalances and prevent potential economic or financial instability.
The White House characterized the action as part of a broader effort to rebalance trade relationships and encourage domestic production.
The 10% surcharge takes effect at 12:01 a.m. Eastern time on February 24.
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