US Section 122 duty: which goods are exempt from the new surcharge
The White House has published a detailed exemption list—covering everything from critical minerals and pharma to USMCA goods—plus a narrow “goods on the water” carve-out.
Exemptions spelled out ahead of February 24
Ahead of the new Section 122 import surcharge taking effect on February 24, 2026, the White House has issued a list of goods that will not be subject to the duty, including critical minerals, energy products, pharmaceuticals, certain electronics and vehicles, as well as USMCA-compliant goods from Canada and Mexico.
What is exempt
According to the White House fact sheet and proclamation, exemptions include:
- Certain critical minerals
- Metals used in currency and bullion
- Energy and energy products
- Natural resources and fertilisers that cannot be produced in the US (or not in sufficient quantities)
- Certain agricultural products (including beef, tomatoes and oranges)
- Pharmaceuticals and pharmaceutical ingredients
- Certain electronics
- Passenger vehicles, certain light trucks, certain medium- and heavy-duty vehicles, buses, and certain related parts
- Certain aerospace products
- Informational materials (e.g., books), donations, and accompanied baggage
- Articles subject to Section 232 actions
- USMCA-compliant goods of Canada and Mexico
- Duty-free textiles and apparel under CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua)
“Goods on the water” exemption window
The proclamation also includes a narrow in-transit carve-out for goods that were loaded onto a vessel and in transit before 12:01 a.m. Eastern time on February 24, 2026, and then entered for consumption (or withdrawn from warehouse) before 12:01 a.m. Eastern time on February 28, 2026.
Why exporters must check HTS codes and annexes
The White House says the exemption coverage is implemented through Annexes I and II and related HTSUS modifications, with further technical implementation to be handled via notice (including in the Federal Register). Exporters should therefore match products by HTS code, not broad descriptions.
Reminder on “stacking” with other tariffs
The proclamation states the new surcharge is generally in addition to other duties, but it should not apply in addition to Section 232 tariffs—with special handling where Section 232 applies to only part of an import.
