NASHVILLE, TENN. (RFD NEWS) — A Supreme Court decision blocking prior presidential tariff authorities prompted the White House to immediately pivot to a new temporary import surcharge — a move that could carry significant implications for agriculture, trade flows, and input costs.
Following the ruling, President Trump invoked Section 122 of the Trade Act of 1974 to impose a 10 percent ad valorem import duty, effective February 24. The Administration framed the action as a response to balance-of-payments deficits and international trade imbalances. The new global import duty is set to take effect on Tuesday. However, it can only remain in place for 150 days unless Congress approves an extension.
Also, unlike earlier tariffs, the temporary surcharge includes broad exemptions critical to agriculture. Excluded products include fertilizers not sufficiently produced domestically, certain natural resources, energy products, USMCA-compliant goods from Canada and Mexico, and specific agricultural commodities such as beef, tomatoes, and oranges.
Operationally, this structure limits immediate disruption to North American livestock and specialty crop trade while still raising costs on many imported goods. Fertilizer exemptions are particularly important as spring planting approaches. However, machinery parts, some chemicals, and non-exempt food ingredients could see short-term cost increases.
Regionally, grain exporters are watching currency and retaliatory risk, while livestock producers benefit from continued duty-free trade with Canada and Mexico. The suspension of duty-free “de minimis” treatment also means more small shipments will now face duties, affecting specialty inputs and direct-to-consumer imports.
Looking ahead, the surcharge expires in 150 days unless extended. While the Court restricted prior tariff authority, the Administration signaled that trade actions will continue through alternative legal channels.