ExecutiveOrdersEO
Proc 11012ProclamationTrump 47 · R

Proclamation 11012

Imposing a Temporary Import Surcharge To Address Fundamental International Payments Problems

President Trump imposes a temporary 10 percent ad valorem import surcharge on nearly all goods entering the United States for 150 days, effective February 24, 2026, citing fundamental international payments problems including large balance-of-payments deficits. The proclamation includes extensive exceptions for critical minerals, energy products, pharmaceuticals, vehicles, electronics, agricultural products, and goods from Canada, Mexico, and CAFTA-DR countries, while empowering USTR to monitor conditions and recommend modifications.

Federal Register Open PDF 91 FR 9339

Impact dates

  1. 27d ago

    Surcharge expires unless suspended, modified, terminated earlier, or extended by Act of Congress

  2. Deadline for goods in transit loaded before February 24 to be entered for consumption to avoid surcharge

  3. Surcharge takes effect; HTSUS modifications effective for goods entered for consumption or withdrawn from warehouse

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Steel & aluminumAutosOil & gasPharmaAgricultureTechnology & software

Mechanisms

Tariff

Role pressure

  • AdverseImporter — 10% surcharge on broad range of imports increases cost of goods; complex exception structure creates compliance uncertainty
  • ProtectiveDomestic producer — Surcharge raises prices of competing imports, though effect varies significantly by sector based on exceptions
  • MixedDownstream manufacturer — Benefits from exceptions on critical minerals, energy, and certain inputs but faces higher costs on non-exempt imported components
  • AdverseTrading-partner exporter — Broad application to all trading partners except CAFTA-DR textile/apparel; Canada and Mexico goods under USMCA generally exempt
  • ProtectiveProject developer — Exceptions for energy products and critical minerals reduce cost pressure on domestic energy and infrastructure projects

Geographies

USCNEUJPKRTWMXCAVNINOTHER

Exposure dates

  • — Surcharge takes effect; HTSUS modifications effective for goods entered for consumption or withdrawn from warehouse
  • — Surcharge expires unless suspended, modified, terminated earlier, or extended by Act of Congress

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

AAAlcoaGOOGLAlphabetAAPLAppleADMArcher Daniels MidlandBGBungeCATCaterpillarCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsCTVACortevaLLYEli LillyXOMExxon MobilFFordGEVGE VernovaGMGeneral MotorsHYMTFHyundai MotorQQQInvesco QQQ TrustJNJJohnson & JohnsonMRKMerckMETAMeta PlatformsMSFTMicrosoftNVSNovartis

Confidence: high · Policy alerts

Key directives

  • Impose 10% ad valorem duty on all imported articles except as provided in Annexes I and II
  • Surcharge effective February 24, 2026 through July 24, 2026 (150 days)
  • Surcharge is in addition to other duties except section 232 tariffs
  • Surcharge treated as regular customs duty
  • Foreign trade zone admissions on or after effective date must use 'privileged foreign status'
  • USTR to monitor and review conditions and inform President of need for further action or suspension/modification/termination
  • USTR, USITC Chair, and CBP Commissioner to determine additional HTSUS modifications and publish via Federal Register
  • CBP Commissioner to administer surcharge
  • Heads of all executive departments and agencies to implement proclamation

Who is ordered

Timeline

Immediate

  • 10% ad valorem surcharge takes effect February 24, 2026 at 12:01 a.m. EST
  • HTSUS modifications effective for goods entered for consumption or withdrawn from warehouse
  • Foreign trade zone admissions must use 'privileged foreign status'

Near term (90d)

  • USTR monitoring and review of balance-of-payments conditions and surcharge effects
  • Trade Representative to inform President of circumstances warranting suspension, modification, or termination
  • USTR, USITC Chair, and CBP Commissioner to determine additional HTSUS modifications via Federal Register notice

Long term

  • Surcharge expires July 24, 2026 at 12:01 a.m. EDT unless extended by Act of Congress
  • Potential for further presidential action under section 122 based on USTR recommendations
  • Possible congressional action to extend beyond 150-day statutory limit

Risks & tensions

  • Broad 10% tariff with extensive exceptions creates complex compliance burden and potential for classification disputes
  • 150-day statutory limit under section 122 may create policy cliff; congressional extension uncertain
  • Exception structure heavily favors certain sectors (energy, pharma, autos, agriculture) while leaving others exposed, potentially creating competitive distortions
  • Goods-in-transit exception (Feb 24-28 window) may trigger rush entries and logistical strain
  • Interaction with existing section 232 tariffs creates partial-coverage complexity
  • USTR monitoring role centralizes trade policy authority but timeline for recommendations unspecified
  • Severability provisions unusually extensive, suggesting anticipation of legal challenges to exceptions
  • Claim that action is not for protecting individual domestic industries may be contested given sectoral exception pattern
Proclamation 11012: Imposing a Temporary Import Surcharge To Address Fundamental International Payments Problems · Executive Orders