IEEPA tariffs struck down, new 10% replacement: what you need to know

The Supreme Court struck down IEEPA-based tariffs, and the administration responded with a deliberate swap — replacing IEEPA authority with Section 122 of the Trade Act of 1974, while a separate executive order preserves the de minimis suspension under its own independent authority. This page explains what it means for your shipments, your invoices, and your workflows.



Podcast · Episode 75
Supreme Court strikes down IEEPA tariffs — CEO Clint Reid & Aaron Bezzant, Zonos trade experts, break it down

Status at a glance

Last updated July 15, 2026

What happened

Starting July 24, 2026, postal and commercial duty rates converge. The Section 122 flat 10% surcharge expires. Standard MFN duty rates apply to postal shipments for the first time, alongside the expected Section 301 tariff. The postal DDP threshold rises from $800 to $2,500.


Current status

The Section 122 surcharge is in effect through July 23, 2026. Starting July 24, MFN rates and expected Section 301 tariffs apply to postal shipments. Zonos is updating Landed Cost calculations ahead of July 24 to reflect the new rate structure.


Status at a glance

  • IEEPA tariffs: Ended as of 12:00 a.m. EST, February 24, 2026
  • Section 122 surcharge (10%): In effect February 24 through July 23, 2026 — expires July 24
  • Section 301 tariff (postal): Expected starting July 24, 2026 — 10–12.5% by country of origin, not yet finalized
  • MFN rates (postal): Apply to postal shipments starting July 24, 2026 for the first time
  • Postal DDP threshold: Rises from $800 to $2,500 on July 24, 2026
  • De minimis duty-free treatment: Still suspended for all countries
  • Section 232 tariffs: Apply to postal shipments starting July 24, 2026 (same as commercial)

Latest developments

IEEPA tariff timeline 

Jul 24, 2026

Section 122 expires — MFN and expected Section 301 tariffs apply to postal shipments for the first time

Starting July 24, 2026, the Section 122 flat 10% global surcharge expires for postal shipments. Standard MFN (Most Favored Nation) duty rates apply to postal shipments for the first time, stacking with the expected Section 301 tariff (10–12.5% depending on country of origin — not yet finalized, subject to USTR final action, and may change) and any applicable Section 232 tariffs.

The postal DDP threshold rises from $800 to $2,500 — shipments valued under $2,500 arriving on or after July 24 require prepaid duties. The trigger is the shipment's arrival date, not the transaction date. A shipment quoted before July 24 but arriving on or after July 24 is subject to the new rules.

Posts using Zonos's guarantee (API with Landed Cost guarantee, or Prepay app users) receive a post-specific cutover date 3–9 days ahead of the July 24 arrival cutover — Zonos contacts each post directly. The default cutover for all others is July 21 at 12:01 a.m. EDT.

USMCA can now potentially apply to postal shipments for the first time — but requires a certificate of origin. Details on the process are forthcoming.

Feb 23, 2026

CBP issues official guidance — IEEPA duties stop at 12:00 a.m. EST February 24

CBP issued official guidance confirming that all IEEPA-based duties will stop being collected as of 12:00 a.m. EST on February 24, 2026. Effective 12:01 a.m., those rates are replaced by the new 10% Section 122 global surcharge established by last Friday's executive order. For all practical purposes, this is a rate swap happening overnight.

Zonos will update its Landed Cost calculations at 12:00 a.m. EST tonight to reflect these changes. Section 232 and Section 301 tariffs remain in effect and are unaffected by this change.

Note: President Trump has announced via Truth Social his intent to raise the Section 122 rate to 15%, but no signed order has been published — CBP guidance is pending.

Feb 21, 2026
8:59 AM MST

Trump announces Section 122 tariff raised from 10% to 15%

President Trump posted on Truth Social announcing that, following the Supreme Court ruling, he is raising the Section 122 worldwide tariff from 10% to the maximum legally allowed rate of 15%, effective immediately. He stated that the administration will determine and issue new permissible tariff rates in the coming months.

This is just an announcement — CBP implementation guidance and a formal executive order have not yet been issued. Zonos will update this page as soon as enforcement guidance is available.

Feb 20, 2026
5:40 PM MST

Trump signs a fact sheet and two executive orders overhauling U.S. tariff policy

President Trump signed a fact sheet and two executive orders on February 20, 2026, replacing the prior IEEPA-based tariff regime with a new framework:

  • Prior IEEPA tariffs terminated (Executive Order) — Additional ad valorem duties previously imposed under IEEPA are ended, including country-specific duties on China, Canada, Mexico, Brazil, Russia, Cuba, Iran, and Venezuela, and the reciprocal tariffs. Section 232 and Section 301 tariffs are unaffected.

  • 10% Section 122 import surcharge (White House Fact Sheet) — A temporary 150-day, 10% ad valorem duty on all imported articles, effective February 24, 2026 at 12:01 a.m. EST. Excluded categories include certain critical minerals, pharmaceuticals, electronics, passenger vehicles, aerospace products, and (at least for commercial shipments) USMCA-compliant goods from Canada and Mexico.

  • De minimis suspension continued (Executive Order) — The most consequential action for cross-border e-commerce. This EO explicitly continues the suspension of duty-free de minimis treatment for all shipments regardless of value, country of origin, or mode of transportation; continues the qualified party process; resets the duty rate for international postal shipments to the 10% Section 122 rate (replacing previous IEEPA-based rates); and confirms CBP has the systems in place to collect these duties. Effective February 24, 2026 at 12:01 a.m. EST.

Feb 20, 2026
12:00 PM MST

Trump plans to sign 10% global tariff executive order — not yet in effect

Watch press briefing

Following the Supreme Court ruling, President Trump stated he would sign an executive order imposing a 10% global tariff on all nations under Section 122 of the Trade Act of 1974 — a separate legal authority that gives the president power to impose tariffs of up to 15% for up to 150 days and is unaffected by the Supreme Court ruling — on top of existing tariffs.

What this means for you right now: nothing has changed. The order has only been announced — it has not been signed, published in the Federal Register, or enforced. Until the executive order is signed and CBP issues guidance, no Section 122 tariffs apply at the border. Zonos will update this page as soon as the order is signed and enforcement guidance is available.

Feb 20, 2026
8:00 AM MST

U.S. Supreme Court rules IEEPA-based tariffs unlawful

The U.S. Supreme Court issued a landmark ruling declaring tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unlawful. The court found that IEEPA does not grant the president authority to impose tariffs.

CBP has not yet issued updated enforcement guidance — IEEPA tariff rates remain in effect at the border until further notice. Zonos is in close contact with CBP and will update this page as soon as enforcement guidance is issued.

↕ Scroll to see other updates

View your account type below for specific, up-to-date guidance.

Prepay app

Last updated: July 15, 2026

Starting July 24, 2026, the Section 122 surcharge expires. MFN duty rates and the expected Section 301 tariff (10–12.5% by country of origin — not yet finalized) apply to postal shipments for the first time. The postal DDP threshold rises from $800 to $2,500. Zonos is updating Landed Cost calculations ahead of July 24 to reflect the new rate structure.


Your cutover date may be before July 24. Zonos contacts each post directly with a post-specific cutover date (3–9 days before the July 24 arrival cutover). The default cutover is July 21 at 12:01 a.m. EDT.


All tariffs paid via the Prepay app are guaranteed — Zonos takes on the risk of any discrepancy for these shipments.

Verified accounts

Last updated: July 15, 2026

Starting July 24, 2026, the Section 122 surcharge expires. MFN duty rates and the expected Section 301 tariff (10–12.5% by country of origin — not yet finalized) apply to postal shipments for the first time. The postal DDP threshold rises from $800 to $2,500. Zonos is updating duty calculations ahead of July 24.


Your cutover date may be before July 24. Zonos contacts each post directly with a post-specific cutover date (3–9 days before the July 24 arrival cutover). The default cutover is July 21 at 12:01 a.m. EDT.


Invoicing continues normally. Invoices after July 24 will reflect the new duty structure (MFN + expected Section 301 + Section 232 as applicable).

Direct customers & ecommerce merchants

Last updated: July 15, 2026

Starting July 24, 2026, postal and commercial duty rates converge for the first time. The Section 122 flat 10% surcharge expires. Postal shipments are now subject to MFN rates, the expected Section 301 tariff (10–12.5% by country of origin — not yet finalized), and applicable Section 232 tariffs — the same structure as commercial shipments.


The postal DDP threshold rises from $800 to $2,500. A $1,000 shipment that didn't require prepaid duties before July 24 will require them after. Duty quotes generated before July 24 for shipments arriving on or after July 24 will be recalculated under the new rates.


Most Zonos ecommerce customers use the Zonos guarantee, so Zonos covers any discrepancies during this transition.

Postal operators

Last updated: July 15, 2026

Starting July 24, 2026, the Section 122 surcharge expires. Postal shipments are now subject to MFN rates, the expected Section 301 tariff (10–12.5% by country of origin — not yet finalized), and applicable Section 232 tariffs. The postal DDP threshold rises from $800 to $2,500.


Your cutover date may be before July 24. Zonos contacts each post directly with a post-specific cutover date (3–9 days before the July 24 arrival cutover) based on that post's data and average transit time. The default cutover for all others is July 21 at 12:01 a.m. EDT. Without the Zonos Landed Cost guarantee, discrepancies during the transition are your purview — messaging your international shippers about the change is recommended.


Zonos updated its Landed Cost API on February 24 to reflect the Section 122 rate. This page will be updated as additional guidance becomes available.

Zonos is focused on helping postal operators and shippers stay aligned as guidance evolves — especially during periods of legal and regulatory change.


Clear, centralized updates

One place to check

This page serves as a single, public source of truth for updates related to the Supreme Court decision and CBP guidance affecting postal shipments.

Aligned to CBP guidance

No guesswork

Zonos updates its systems and guidance based on confirmed CBP enforcement positions, helping reduce uncertainty for posts and shippers.

Prepared for next steps

If things change again

If additional guidance, clarifications, or replacement measures are introduced, Zonos is positioned to reflect those changes and communicate what they mean for postal shipments.


What changes on July 24, 2026? The Section 122 flat 10% surcharge expires for postal shipments. Standard MFN duty rates apply to postal shipments for the first time, alongside the expected Section 301 tariff (10–12.5% depending on country of origin — not yet finalized, subject to USTR final action, and may change) and any applicable Section 232 tariffs. The postal DDP threshold rises from $800 to $2,500. Commercial shipment duty treatment is unchanged.


Does Section 301 now apply to postal shipments? Starting July 24, 2026, Section 301 tariffs are expected to apply to postal shipments. Before July 24, postal shipments were subject only to the Section 122 surcharge and Section 301 did not apply to postal clearance. The expected Section 301 rate is 10–12.5% depending on country of origin — not yet finalized.


What is the Section 122 tariff and how is it different from IEEPA? Section 122 of the Trade Act of 1974 gives the president authority to impose tariffs of up to 15% for up to 150 days to address trade deficits or a dollar crisis. Unlike IEEPA, it was specifically designed to authorize tariffs, so the Supreme Court ruling does not affect it. President Trump signed an executive order on February 20, 2026, using Section 122 to impose a 10% global tariff effective February 24, 2026. That surcharge expires July 24, 2026.


I don't know what IEEPA is — does this affect me? If you ship parcels to the U.S., duties on those shipments changed on February 24, 2026, and are changing again on July 24, 2026. IEEPA duties ended February 24 and were replaced by a new 10% Section 122 global surcharge. That surcharge expires July 24, when MFN rates and the expected Section 301 tariff replace it for postal shipments. De minimis duty-free treatment remains suspended.


Are IEEPA duties gone for all U.S.-bound shipments? Yes — as of 12:00 a.m. EST on February 24, 2026. The Section 122 surcharge replaced them through July 23, 2026. Section 232, Section 301, and MFN duties remained in effect for commercial shipments throughout.


What about commercial shipments — do they still have duties? Yes. MFN (most-favored-nation) rates, Section 232 tariffs, and Section 301 tariffs all remain in effect for commercial shipments. Starting July 24, 2026, postal shipments are also subject to MFN, Section 301 (expected), and Section 232 — the same structure as commercial.


Will I receive my invoices as usual? Yes. Invoicing continues normally. Zonos updated duty calculations on February 24 to reflect the Section 122 rate. Zonos is updating calculations again ahead of July 24 to reflect the new rate structure. Note there may be discrepancies for shipments quoted before July 24 but arriving on or after July 24.


Do I need to change my integration or workflow? No. Zonos updates systems automatically. No action is required on your end.


Why might duty still show up after the IEEPA ruling? IEEPA tariffs ended at 12:00 a.m. EST on February 24, but the Section 122 surcharge replaced them effective 12:01 a.m. the same day. Section 232, Section 301, and MFN rates also remained in effect for commercial shipments. Starting July 24, those same rates now apply to postal shipments as well.

We recommend bookmarking this page and checking back for updates as additional guidance becomes available.