The Section 122 10% global electronics tariff applies to imports from ALL countries — including Taiwan, Malaysia, Japan, and South Korea. Learn what it covers, what's exempt, and how to calculate your exposure.
The Section 122 surcharge is a 10% additional import duty imposed on electronic components and related goods under the International Emergency Economic Powers Act (IEEPA). Unlike Section 301, which targets China specifically, Section 122 applies to electronics imports from all countries — including major US allies like Taiwan, Japan, South Korea, Germany, Malaysia, and the Philippines. The tariff was implemented in the 2025-2026 timeframe as part of a broad trade policy initiative. The Supreme Court upheld the core IEEPA tariff authority in early 2026, though some specific applications remain in litigation.
The Section 122 surcharge covers a broad range of electronics: HTS Chapter 84 (computers, peripherals, some machinery), HTS Chapter 85 (electrical machinery including semiconductors, ICs, batteries, and most electronic components), and portions of other chapters covering electronic sensors, displays, and related equipment. The specific HTS codes covered are listed in the Federal Register notice implementing the surcharge. Key affected codes include 8541 (discrete semiconductors), 8542 (integrated circuits), 8532 (capacitors), 8533 (resistors), 8504 (transformers/inductors), 8534 (PCBs), 8544 (wire/cable assemblies), and 8471 (computers).
Section 122 applies to electronics imports from virtually all countries, including Taiwan (10%), Malaysia (10%), Japan (10%), South Korea (10%), Philippines (10%), Thailand (10%), Vietnam (10%), Germany (10%), and most other trading partners. The primary exceptions are: (1) USMCA-qualifying goods from Mexico and Canada (FTA carve-out), (2) goods from countries with specific bilateral agreements containing tariff exemption provisions, and (3) some goods from least-developed countries covered by separate GSP provisions. For practical purposes, assume Section 122 applies to electronics from any Asian manufacturing country.
Section 122 is additive to other applicable tariffs. For China-origin semiconductors (HTS 8541–8542): 0% MFN base + 50% Section 301 + 10% Section 122 = 60% total. For Taiwan/Malaysia/South Korea electronics: 0% MFN base + 0% Section 301 + 10% Section 122 = 10% total. For USMCA-qualifying Mexico electronics: 0% MFN base + 0% Section 301 + 0% Section 122 (FTA exempt) = 0% total. For US domestic goods: no import duty applies. The 10% rate is applied to the customs value (dutiable value) of the merchandise.
A 10% across-the-board surcharge has significant absolute dollar impact for electronics buyers. For a $1M annual electronics BOM sourced entirely from Taiwan or Malaysia (non-China), Section 122 adds $100,000 per year in duty costs. At scale, this is a major consideration for procurement strategy. Companies with high-volume electronics imports are exploring FTZ programs (defer duty until sold in the US), duty drawback (recover duty on re-exported goods), first-sale valuation (reduce the dutiable value), and USMCA nearshoring (eliminate the duty entirely).
Section 301 is China-specific and was imposed for trade practice violations (50% rate for semiconductors HTS 8541–8542; 25% for other electronics). Section 122 is universal and was imposed under IEEPA national security authority (10% rate). They stack for China-origin semiconductors (60% total). Only Section 122 applies for non-China electronics (10% total). Section 301 has an exclusion process through USTR; Section 122 does not currently have a product-specific exclusion process. Both are subject to ongoing legal challenges.
| Source / Scenario | Rate | Notes |
|---|---|---|
| China (semiconductors 8541/8542) | 60% | Section 301 (50%) + Section 122 (10%) |
| Taiwan | 10% | Section 122 only |
| South Korea | 10% | Section 122 only |
| Malaysia | 10% | Section 122 only |
| Japan | 10% | Section 122 only |
| Philippines | 10% | Section 122 only |
| Vietnam | 10% | Section 122 only |
| Germany / Europe | 10% | Section 122 only |
| Mexico (USMCA-qualifying) | 0% | FTA exemption |
| United States | 0% | Domestic — no import duty |
The Section 122 surcharge is an executive action under IEEPA, which means it can be modified, expanded, or terminated by executive order. It was upheld broadly by the Supreme Court in early 2026. Whether it remains in effect long-term depends on trade policy developments. Use TariffTracker for current rates.
The IEEPA executive order implementing Section 122 includes carve-out language for FTA partners. USMCA-qualifying goods from Mexico and Canada are generally exempt from Section 122. However, the exact scope of this exemption depends on the specific product and HTS code. Consult a licensed customs broker to confirm for your product.
Normally, no — unlike Section 301 exclusions, Section 122 does not have a refund or drawback mechanism for most importers. However, goods that are subsequently exported may qualify for duty drawback (recovery of up to 99% of duties on re-exported merchandise) under standard CBP drawback procedures.
Section 122 applies to commercial shipments regardless of value. The de minimis threshold ($800 for informal entries) applies to the total duties owed — shipments below $800 may not trigger formal entry and duty assessment, but higher-value shipments above de minimis must pay the 10% surcharge.
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