Section 122’s 10% Tariff Expires July 24 — Are Bag Import Costs Back to Normal?

Short answer: no — and the “Section 301 is paused” rumor going around importer groups is wrong. What actually happens on July 24, 2026 is that the Section 122 flat 10% import surcharge — the temporary measure that has applied to nearly all US imports since February 24 — hits its built-in 150-day legal limit and expires. The Section 301 tariffs on China (7.5–25% on most bags) never paused and don’t expire, and a new Section 301 tariff — 12.5% on Vietnam and China, 10% on Malaysia — was finalized on 24 July as Section 122’s replacement. Whether your bag import bill actually drops — and for how long — came down to the final USTR decision, now issued on 24 July (see the update above).

Last updated: 24 July 2026. USTR issued its final Section 301 decision on 24 July; this article now reflects the confirmed outcome. See Sources & further reading for the official notices.

First, untangle the confusion: Section 122 vs Section 301

Two different tariffs with similar names are being mixed up in a lot of importer chatter right now:

So when someone says “the tariff is ending and rates go back to normal,” they’re talking about Section 122 — the temporary 10% blanket surcharge. The Section 301 duties on China-origin bags are a completely separate measure, have no sunset date, and are not paused. If your bags are made in China, nothing about July 24 helps you.

What exactly expires on July 24 — and what doesn’t

Section 122 of the Trade Act of 1974 allows a president to impose an emergency import surcharge for a maximum of 150 days unless Congress extends it. It took effect February 24, 2026, which puts its automatic end at 12:01 a.m. EDT on July 24, 2026. No extension legislation has advanced in Congress.

Expiring July 24:

• The flat 10% Section 122 surcharge on most imports — including bags from Vietnam, Malaysia, and the rest of Southeast Asia.

NOT expiring (unchanged):

• China Section 301 lists — the 7.5–25% duties on most China-made bags, in place since 2018–19.
• Normal MFN duty on your bag’s HTS 4202 code — this always applies, from every origin (the rate depends on the exact code and material; confirm with your broker).
• Section 232 duties on steel, aluminum, and autos — not bag-relevant, but often mixed into the same headlines.
• The suspension of de minimis — the old $800 duty-free threshold is still gone; small parcels still pay duty.

The replacement: the forced-labor Section 301

Here’s why “back to normal” is probably temporary at best. USTR has already run the process for Section 122’s successor: the Section 301 forced-labor investigation covering 60 economies. The proposed rates:

• 12.5% for countries without a forced-labor import ban — including Vietnam.
• 10% for countries with a full or partial regime — a tier analysts place Malaysia in.

Public comments closed July 6, and public hearings ran July 7–9. The proposal is fully teed up for a final determination — and unlike Section 122, a Section 301 action has no statutory expiration. USTR timed the final action so the new tariff took effect as Section 122 lapsed — confirmed on 24 July, with no gap in between. Our deep dive on the Vietnam forced-labor tariff covers what was proposed and how origin compliance works.

What happened on July 24: the final rates

Scenario 1 — the “seamless replacement” analysts expected — is what landed. Section 122 lapsed on 24 July and USTR’s final Section 301 forced-labor action took its place, with country-specific rates that carry no sunset date. There was no “back to normal” gap. Here is what a bag now pays by origin:

The prediction held: the ordering never changed. China-origin bags carry the extra 7.5–25% Section 301 layer on top of the new 12.5%; Vietnam and Malaysia don’t. And Malaysia did land 2.5 points below Vietnam — making it the lowest-tariff bag origin in Southeast Asia. We break down what that saves, and when it actually matters, in is now the time to source bags from Malaysia?

Two practical notes that still apply:

• Duty is set by the date of entry, not the ship date. Goods entering around the 24 July changeover can fall under the old or new regime depending on the entry date your broker files — confirm the exact effective treatment for your shipments.
• China-origin bags sit outside the Southeast Asia advantage. They keep their existing 7.5–25% Section 301 duties on top of the new 12.5%. The China–Southeast Asia gap persists, which is why the China Plus One shift continues regardless.

What US bag importers should do this week

1. Model two landed costs for your top SKUs: MFN-only (scenario 2) and MFN + 12.5% (scenario 1). If your margin only works in scenario 2, you’re planning on a window that may never open.
2. Coordinate entry dates with your broker. If you have goods arriving near July 24, a few days’ difference in entry filing can change the duty rate.
3. Keep your Section 122 payment records. A US trade court struck the surcharge down in May 2026; the ruling’s fate is uncertain, but if it’s ultimately voided, documented payments since February 24 are the basis of your refund claim.
4. Don’t restructure sourcing around a rumor. The durable facts are unchanged: China-origin bags carry the heaviest tariff stack, Southeast Asia origins carry the lightest, and genuine, documented origin is what protects the advantage. Our US buyer’s guide to sourcing bags from Southeast Asia walks the full import process.
5. Recheck after USTR announces. Whatever publishes in the Federal Register — rate, scope, product exclusions — supersedes every prediction in this article, including ours.

If you want your specific bags modeled across origins before you commit a PO, send us a sourcing brief — we quote landed-cost scenarios across Vietnam and Malaysia as part of our sourcing process.

Frequently asked questions

Sources & further reading

• U.S. Trade Representative — Findings and Proposed Action in 60 Section 301 Forced-Labor Investigations (June 2, 2026).
• U.S. Trade Representative — Public Hearings on Proposed Responsive Action (July 7–9, 2026).
• TariffsTool — Section 122 Expires July 24, 2026: Importer Playbook.
• TariffsTool — Section 301 Replacing Section 122: 12.5% on 46 Countries.
• Skadden — US Trade Court Strikes Down Section 122 Tariffs (May 2026).
• Movargo — Section 301 Tariff 2026: What Happens After July 24?

Tariff policy is changing quickly in 2026. Confirm the current rules and your specific product’s classification with a licensed customs broker before making sourcing or pricing decisions.