Battle of 122 Tariffs: Is it 10 or 15%?

Feb. 27, 2026
By: Hannah B. Kreinik

Very soon after the U.S. Supreme Court struck down President Trump’s use of IEEPA for tariffs (see our article here), the President implemented Section 122 tariffs at 10%. Following this initial response, President Trump announced on social media that he would increase the tariff to 15% (see our original article on Section 122 duties here). Sssssoooo, which is it? 10 or 15%? For the time being, 10% is in Proclamation 11012.

Several White House sources have confirmed that the delay is due to how the administration plans to handle IEEPA reciprocal agreements that were already negotiated (see our articles on the future of the agreements here). The reality is that a 10% 122 duty would likely, even with added MFN duties, be closer to (or below) the various 15% caps important trade partners already negotiated. A 15% 122 duty would definitely exceed the cap for all goods with MFN rates above 0%. Hence the delay.

USTR Jamieson Greer admits some of the agreements have not been completely implemented by the parties, like the European Union and the United Kingdom, however, the U.S. still plans to hold the parties to their negotiated deals. Ambassador Greer did note, however, that some deals negotiated rates higher than a 15% tariff (i.e., India and Bangladesh, see the articles here and here). Greer continued, stating that some of the deals would need to be “rejigger[ed]…” in relation to Section 122. How the U.S. plans to “rejigger” the deals is still unknown.

In addition to the U.S. comments, the EU has spoken out regarding the conflicts between its agreement with the U.S. and the Section 122 duties. European Commission spokesperson, Olof Gill, is curious as to how the U.S. will apply the current 15% rate agreed to earlier and the current 10% rate (or 15%). Specifically, Gill is concerned that the Section 122 rate will stack on the MFN rates for certain European goods. Spokesperson Gill also said that the EU would want a strategy in “clear operational detail” before the EU agrees to any changes.

The administration clearly believes that agreements with partners like the European Union, Japan, and Korea are important. This will make it very difficult to raise 122 rates, but the administration is highly motivated. As always, importers should prepare for the unexpected and check with us the Barnes, Richardson & Colburn attorneys keep you updated on all the twists and turns of the Trump administration’s trade policy.