Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems – The White House

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

1. The United States occupies a critical position in the global economic landscape. However, it also grapples with a multitude of threats to its economic stability and national interests. At times, the nation encounters severe international payment challenges, such as significant balance-of-payments deficits, the looming depreciation of the U.S. dollar in foreign exchange markets, or an international balance-of-payments imbalance. These challenges can jeopardize the nation’s ability to finance its expenditures, diminish investor confidence, and create turmoil in financial markets.
2. To safeguard the economy and national security, special import measures like surcharges and quotas serve as essential tools. In certain scenarios, they become necessary to tackle fundamental issues related to international payments.
3. In light of the seriousness of these international payment challenges and the critical role of import restrictions in economic, national security, and foreign policy, federal law—specifically section 122 of the Trade Act of 1974 (19 U.S.C. 2132)—grants the President the authority to implement surcharges and other special import restrictions.
4. I have received insights and assessments from senior officials regarding the presence of fundamental international payments problems and how these may impact U.S. national interests, including economic and national security. Their evaluations encompassed the status of the U.S. balance of payments, the positioning of the dollar in foreign exchange markets, and the overall state of international payment balances. Recommendations were also made concerning the necessity for special import measures to address these challenges, particularly the need for ad valorem duties to mitigate large balance-of-payments deficits and prevent significant dollar depreciation.
5. Advisors have indicated that fundamental international payments issues, as defined by section 122, are indeed present and that special import measures are warranted. Specifically, an import surcharge in the form of ad valorem duties is essential to manage the substantial balance-of-payments deficits faced by the United States. Certain products may be exempt from this surcharge due to domestic economic needs, and these exceptions align with the objectives of section 122 and the national interest.
6. The analysis shows that the U.S. balance-of-payments position, within any reasonable context of section 122, currently reflects a substantial deficit. Various assessment methods, including current-account statistics, indicate that the U.S. is experiencing a severe imbalance.
7. For example, the U.S. has been running a deficit in exporting goods and services, as documented by the Bureau of Economic Analysis (BEA). This includes quarterly deficits in returns from investments or labor and a negative balance in voluntary transfers like remittances. In simpler terms, the U.S. is not only selling fewer goods abroad than it buys, but it also does not earn enough from its overseas investments and sees more money flowing out than in through transfers.
8. My advisors have further reported that the U.S. goods trade deficit has escalated dramatically—by over 40% in just the last five years—hitting $1.2 trillion in 2024 and remaining at that level in 2025. This persistent deficit carries significant repercussions and contributes to the overarching international payment issues.
9. Moreover, the primary income balance of the U.S. turned negative for the first time since at least 1960 in 2024, shifting from a historic surplus to a deficit. This change means the United States no longer has a stabilizing force against its trade deficit, leading to a current account deficit that reached 4.0% of GDP in 2024, nearly double the average from 2013 to 2019 and the largest since 2008.
10. The net international investment position of the U.S. is also on a troubling decline. By the end of 2024, this position was negative 90% of GDP, a stark contrast to the previous decade’s average of negative 41%. This negative standing is atypical for any developed nation, underscoring the severity of the U.S. balance-of-payments deficit.
11. Additionally, the United States has consistently run a deficit in its secondary income balance since the 1960s.
12. Advisors have concluded that imposing an import surcharge, particularly as ad valorem duties, is crucial to address these international payment challenges. They recommend that certain products be exempt from the surcharge to better align with U.S. economic needs, making this approach more effective in handling the balance-of-payments deficit.
13. After evaluating the information and recommendations from senior officials, I have determined that significant international payment challenges exist, adversely impacting U.S. national interests, including economic and security concerns. Special import measures are necessary to address these issues as authorized by section 122. Therefore, I am imposing a temporary import surcharge of 10% ad valorem on certain imports, effective February 24, 2026, for a period of 150 days.
14. In consideration of U.S. economic needs, the surcharge will not apply to the following products, detailed in Annexes I and II:
    (a) specific critical minerals;
    (b) metals utilized in currency and bullion;
    (c) energy and energy products;
    (d) natural resources and fertilizers that cannot be produced domestically or in sufficient quantities to meet demand;
    (e) select agricultural products, such as beef, tomatoes, and oranges;
    (f) pharmaceuticals and their ingredients;
    (g) certain electronics;
    (h) passenger vehicles, specific light trucks, medium and heavy-duty vehicles, buses, and related components;
    (i) certain aerospace products;
    (j) informational materials, donations, and personal baggage;
    (k) all articles currently or later subjected to additional import restrictions under section 232 of the Trade Expansion Act of 1962;
    (l) articles entering duty-free from Canada or Mexico under specific trade agreements; and
    (m) textile and apparel articles entering duty-free from several Central American countries under the Dominican Republic-Central America Free Trade Agreement.
15. I affirm that each exception to the surcharge described in paragraph 14 aligns with the limitations and purposes of section 122. These exceptions are vital to ensure that the surcharge does not disrupt essential supplies or create significant disruptions in the importation of critical goods, nor is it intended to protect individual domestic industries from competition.
16. In my assessment, the proposed surcharge is consistent with section 122’s objectives, the national interest, and the overall needs of the U.S. economy. Implementing this surcharge is essential to address the serious international payment challenges identified. Thus, it will aid in rectifying the troubling balance-of-payments deficit.
17. Section 122 permits the President to impose a temporary import surcharge of up to 15% ad valorem for no more than 150 days unless extended by Congress under circumstances of fundamental international payment challenges.
18. Section 604 of the Trade Act of 1974 authorizes the President to modify the Harmonized Tariff Schedule of the United States (HTSUS) to reflect changes in import treatment.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, exercising the authority granted to me by the Constitution and U.S. law, including section 122, section 301 of title 3, United States Code, and section 604, do hereby proclaim the following:

(1) All articles imported into the United States shall be subject to a 10% ad valorem duty, except as specified in Annexes I and II.

(2) The surcharge shall not apply to the imports listed in paragraph 2 of Annex I and enumerated in Annex II.

(3) The surcharge is in addition to any other applicable duties, taxes, or charges.

(4) The surcharge shall not apply alongside tariffs imposed under section 232; it will apply only to parts of imports not subject to those tariffs.

(5) The surcharge is treated as a regular customs duty.

(6) Any article subject to the surcharge admitted into a U.S. foreign trade zone must be classified under “privileged foreign status” and will incur the applicable ad valorem duty.

(7) The HTSUS shall be modified as outlined in Annex I, effective for goods entered for consumption on or after February 24, 2026, and will remain in effect until July 24, 2026, unless suspended or modified sooner.

(8) Heads of executive departments and agencies are directed to implement this proclamation.

(9) The United States Trade Representative will monitor the conditions related to these payment challenges and the surcharge’s impact, reporting to the President on the need for further actions.

(10) The Trade Representative will collaborate with relevant officials to determine if further modifications to the HTSUS are necessary.

(11) The Commissioner of Customs and Border Protection may take actions as required to manage the surcharge.

(12) (a) Any inconsistent provisions in previous proclamations are superseded. If any part of this proclamation is deemed invalid, the remainder shall remain effective.

(b) If any exception is invalidated, the surcharge will still apply to imports previously covered by that exception, collected prospectively.

(c) This proclamation will remain operational until July 24, 2026, addressing the identified balance-of-payments deficits, irrespective of any invalidated exceptions.

IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of February, in the year of our Lord two thousand twenty-six, and of the Independence of the United States of America the two hundred and fiftieth.

LINK TO ANNEX
LINK TO ANNEX 2

DONALD J. TRUMP