To our valued customers,
The purpose of this message is to provide summary guidance regarding the February 20, 2026 Executive Order (EO), “Ending Certain Tariff Actions,” that terminates the collection of the additional ad valorem duties imposed pursuant to the International Emergency Economic Powers Act (IEEPA) and the February 20, 2026 Presidential Proclamation, “Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems,”.
In summary, while the executive order on tariffs has changed and added additional complexity to the situation, for the most part tariffs will continue to be assessed at similar rates. For a more complete detailed look, we have included for your reference key points observed.
More detailed information regarding these actions are available on the CBP website at: Cargo Systems Messaging Service | U.S. Customs and Border Protection . You can search the page and click the links for:
- “CSMS # 67834313 – Ending Collection of International Emergency Economic Powers Act Duties”
- “CSMS # 67844987 – Imposing Temporary Section 122 Duties”
IEEPA Tariff Collection:
Per CSMS# 6783413, IEEPA duties will no longer be in effect and will no longer be collected for goods entered for consumption or withdrawn from warehouse for consumption, on or after 12:00 a.m. eastern time on February 24, 2026. Note that Keytronic may still pass through IEEPA duties for material received from U.S. based supplier’s stock cleared for entry prior to February 24, 2026.
This EO affects IEEPA duties only and does not affect any other general duties, including duties imposed under section 232, section 301 and anti-dumping / countervailing.
New Section 122 Duties:
A Presidential Proclamation issued February 20, 2026, imposes a temporary 10% ad-valorem import surcharge under Section 122 of the Trade Act of 1974 for up to 150 days. The surcharge applies to most imported goods from all countries, unless a specific exemption applies.
Effective period:
Applies to goods entered for consumption (or withdrawn from warehouse) from 12:01 a.m. ET on February 24, 2026.
- The surcharge is reported under HTSUS 9903.03.01
- The 10% duty is in addition to all other applicable duties, unless exempted
- The entered value is generally reported under the Chapter 1–97 HTS, with Chapter 99 used to apply the surcharge
Key Exemptions (HTSUS 9903.03.02–9903.03.11)
Goods not subject to the additional 10% include:
- In‑transit goods
- Loaded and already in transit before February 24, 2026, and entered before February 28, 2026
- Certain agricultural and religious-use products
- Includes specific fruits, juices, essential oils, and religious-use food items (as explicitly listed in the notice)
- Civil aircraft and related parts
- Aircraft (non‑military), engines, components, and flight simulators (documentation required)
- Products already covered by other trade actions
- Certain steel, aluminum, autos, semiconductors, copper products, wood products, and medium/heavy-duty vehicles and parts as provided for in subdivision (aa)(v) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS
- Articles that are qualified as USMCA
IEEPA Rebates
As of this writing, there is no clear guidance regarding the U.S. Government providing rebates for IEEPA tariffs. We will closely monitor this situation and provide updates.
Regards,
Mark Courtney
Vice President of Supply Chain