Verified · updated monthly · changelog
The 10% Section 122 surcharge expired at its 150-day statutory limit at — but it was not simply removed. The same day, a new Section 301 forced-labor duty of 12.5% took effect on goods of China, Vietnam, and about 44 other economies. For power and connectivity hardware the net effect was a small increase, not relief: the replacement runs 2.5 points higher than the surcharge it replaced.
What changed on July 24
The surcharge (10%, Proclamation 11012) reached its hard 150-day cap and lapsed. In its place, USTR’s Section 301 forced-labor action imposed a 12.5% duty on the same broad set of origins — China and Vietnam among them — with USMCA-compliant goods of Mexico and Canada exempt. Unlike the surcharge, the new duty has no rate cap and no statutory sunset, and it stacks on the existing 25% China Section 301.
For a switching adapter (HTS 8504.40.85, Free base), China’s effective rate rose from 35.0% to 37.5%, and Vietnam’s from 10.0% to 12.5%. Vietnam did not reach 0% — the replacement covers it too.
| Scenario, 8504.40.85 | China | Vietnam | Delta |
|---|---|---|---|
| Before July 24 — §122 in effect | 35.0% | 10.0% | 25.0 pts |
| From July 24 — §301 forced-labor | 37.5% | 12.5% | 25.0 pts |
The forced-labor action is being challenged in court; we update this page the week any ruling changes a rate.
The decision did not move
What held through the transition is the 25-point gap between Chinese and Vietnamese origin: it is the List 3 Section 301, and it applies to Chinese origin only. The surcharge — and now the forced-labor duty — move both origins together; the List 3 §301 is what separates them, and it is unchanged. For the full breakdown by authority, see the duty stack, or estimate a per-unit figure with the landed-cost calculator. We reprice your quote the week any layer changes, so the number you plan against is the number that clears.
Sources
- Section 301 forced-labor duty — 12.5%, eff. 2026-07-24USTR Section 301 (forced-labor action)
- Section 122 surcharge (expired) — 10%, eff. 2026-02-24, 150-day capProclamation 11012 · 19 U.S.C. §2132
- Section 301, List 3 (the 25-point China layer that remains)84 FR 20459
Frequently asked
What replaced the Section 122 surcharge?
The 10% Section 122 surcharge (Proclamation 11012) expired at its 150-day statutory limit at 12:01 a.m. ET on July 24, 2026 — and was replaced the same day by a new Section 301 forced-labor duty of 12.5% on goods of China, Vietnam, and about 44 other economies. USMCA-compliant goods of Mexico and Canada are exempt. So the surcharge was replaced, not simply removed.
What happened to power-adapter tariffs on July 24?
China’s effective rate on HTS 8504.40.85 rose from 35.0% to 37.5%, and Vietnam’s from 10.0% to 12.5% — because the new 12.5% Section 301 forced-labor duty is 2.5 points more than the 10% surcharge it replaced, and it stacks on the existing 25% China Section 301. Vietnam did not fall to 0%. The 25-point China–Vietnam gap (the List 3 §301) is unchanged.
Changelog
We verify monthly whether or not anything changed, and say so. Corrections: write to us — fixes are published here with the date.
The tariff answer is only half of it.
The layer moved; the decision did not. The 25-point §301 gap between Chinese and Vietnamese origin is what it always was. Kestner prices in USD with the tariff math shown and reprices your quote the week any layer changes — so a transition like this is a line item, not a surprise.
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