Amazon sellers importing products into the United States received some welcome news on July 24, 2026: the 10% Section 122 global import surcharge officially expired after reaching its maximum 150-day legal duration.
For businesses that rely on imported inventory, this change has the potential to reduce landed costs and improve profit margins. However, the opportunity may be short-lived. Policymakers are already discussing a new tariff framework under Section 301, meaning today's cost savings could quickly disappear.
If you sell on Amazon, now is the time to reassess your costs, pricing strategy, and inventory planning before placing your next purchase order.
The Section 122 surcharge was introduced under a presidential proclamation and became effective on February 24, 2026, applying an additional 10% import surcharge to most imported goods entering the United States.
Under Section 122 of the Trade Act of 1974, emergency import surcharges are legally limited to 150 days unless Congress authorizes an extension.
That extension never happened.
As a result, the surcharge automatically expired at 12:01 a.m. ET on July 24, 2026. This wasn't the result of a new executive order or policy reversal—it simply reached the end of its statutory lifespan.
For Amazon sellers, this marks an important shift in import costs and creates a temporary opportunity to improve profitability.
For many ecommerce businesses, import duties directly influence product profitability.
With the Section 122 surcharge no longer in effect, many imported consumer products are expected to return to Most Favored Nation (MFN) tariff rates, which generally range between 3% and 5% depending on the product category. Certain categories may even return to significantly lower duty rates.
This reduction can positively impact:
If you're placing new inventory orders after July 24, your future shipments may arrive with lower import costs than those cleared during the surcharge period.
The tariff expiration is not retroactive.
Any shipments that cleared U.S. Customs between February 24 and July 23, 2026 remain subject to the 10% surcharge. Importers should not expect refunds or duty reimbursements for goods already processed.
Although the expiration provides immediate relief, it may only be temporary.
Government officials are already developing a replacement tariff strategy under Section 301.
Current proposals indicate a targeted tariff of approximately 12.5% that could apply to imports originating from around 46 countries.
Unlike the broad Section 122 surcharge, the proposed Section 301 measures would focus on specific countries and product categories.
Additionally, existing Section 232 tariffs remain fully in effect. These continue to apply to products such as:
In other words, while one surcharge has ended, the broader trade landscape remains uncertain.
Amazon sellers should avoid assuming today's lower import costs will become the new long-term standard.
Rather than making immediate pricing changes, take a strategic approach.
Update your landed cost calculations using the post-July 24 tariff rates.
This ensures your:
reflect current import costs rather than outdated surcharge assumptions.
Your Cost of Goods Sold impacts nearly every financial metric in your Amazon business.
Review:
Accurate COGS calculations lead to better pricing and purchasing decisions.
A temporary reduction in import costs doesn't necessarily justify immediate retail price reductions.
Instead, build pricing rules around actual landed costs rather than reacting to short-term news.
This approach helps protect your margins if tariffs change again.
Before committing to large Q4 inventory orders, closely follow announcements related to the proposed Section 301 tariff.
A new import duty introduced before your shipment arrives could significantly alter your expected profitability.
If your landed costs decrease, your competitors' costs likely decrease as well.
Many sellers may lower prices to gain market share.
Monitor pricing trends carefully and avoid unnecessary race-to-the-bottom pricing strategies that erode long-term profitability.
Many sellers mistakenly assume tariff changes affect Amazon's platform fees.
They don't.
Import duties influence your product costs before inventory reaches an Amazon fulfillment center.
Amazon's:
remain completely separate from customs duties.
Understanding this distinction is essential when evaluating your true profit margins.
No. Section 122 affected import duties only. Amazon's FBA, referral, storage, and advertising fees remain unchanged.
No. The expiration is not retroactive. Any duties paid before July 24, 2026 remain final.
Not necessarily.
While Section 122 has expired, policymakers are actively considering a replacement tariff under Section 301 that could increase import costs again.
Not until you've recalculated your landed costs and evaluated the competitive landscape.
Pricing decisions should be based on actual profitability—not headlines.
Businesses importing consumer goods after July 24, 2026 are most likely to benefit, particularly those sourcing products previously subject to the additional 10% surcharge.
The expiration of the Section 122 surcharge offers Amazon sellers a valuable—but potentially temporary—opportunity to improve profitability.
Rather than viewing this as a permanent reduction in costs, use it as a chance to strengthen your pricing strategy, update your financial models, and prepare for future policy changes.
Trade regulations continue to evolve, and businesses that rely on accurate cost analysis instead of assumptions will be better positioned to protect their margins and stay competitive.
At Adorbix, we help Amazon brands navigate changing marketplace conditions through data-driven pricing strategies, profitability analysis, PPC management, and account optimization. If you're unsure how this tariff change affects your catalog, our team can help you evaluate your landed costs, optimize your pricing strategy, and make confident inventory decisions before your next shipment arrives.
