What is Trade Act Section 122 and how does it cap the tariff?

Trade Act Section 122 allows a temporary across-the-board import surcharge to address balance-of-payments issues. The authority is time-limited, capping any surcharge at 150 days. It applies on top of existing duties and is collected at US entry. After 150 days, the measure lapses unless new authority is enacted.

Could the 10% surcharge last beyond 150 days?

Not under Trade Act Section 122 alone. Extending a Trump 10% import tariff beyond 150 days would require new legal authority or action by Congress. Investors should watch for parallel measures or fresh legislation that could replace or supplement any temporary surcharge after the window closes.

How can Hong Kong firms pursue refunds after the US Supreme Court tariff ruling?

Work with US customs brokers to identify eligible entries, file timely protests, and prepare proofs of payment. The US Supreme Court tariff ruling raises the chance of tariff refunds to businesses, but outcomes vary by case. Keep entry numbers, HTS codes, invoices, and assignment letters organized to support any claim.

Which Hong Kong sectors face the biggest impact, and what should investors watch?

Exporters of apparel, electronics, toys, furniture, and jewelry are most exposed. Logistics may see shipment timing shifts. Track landed-cost guidance, USDHKD moves within the peg band, and US retail sales. Watch company disclosures on pass-through, inventory, and margins, especially during the 150-day window of any temporary surcharge.

Law and Government

February 21: Trump’s 10% Stopgap Tariff Faces 150-Day Cap, Refund Risk

ByHuzaifa Zahoor February 21, 2026February 21, 2026

Trump 10% import tariff is back in focus for Hong Kong investors after fresh legal and policy moves in Washington. The proposal, framed under Trade Act Section 122, would apply for up to 150 days and sit on top of existing duties. A recent US Supreme Court tariff ruling voided earlier emergency measures, opening the door to potential tariff refunds to businesses. The US Treasury also signaled tariff revenue may stay steady this year. We assess impacts on exporters, retailers, supply-chain costs, and FX, and outline steps to protect margins if the Trump 10% import tariff proceeds.