U.S. Tariff Policies
U.S. Tariffs Update: What Luggage & Travel Goods Buyers Need to Know
Updated: February 24, 2026
The U.S. tariff landscape has shifted again and sourcing teams in the luggage and travel goods industry need to recalibrate quickly.
After the Supreme Court struck down the Trump administration’s emergency tariff authority, the White House introduced a new temporary global tariff. Meanwhile, trade negotiations, Section 232 expansions, and the possibility of new Section 301 investigations are reshaping risk exposure across Asia.
Here’s what buyers, importers, and sourcing managers need to understand now.
February 2026 Reset: IEEPA Tariffs End, Section 122 Begins
On February 20, 2026, the U.S. Supreme Court ruled (6–3) that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) when imposing global tariffs.
As a result:
All IEEPA tariffs were officially terminated.
U.S. Customs ended IEEPA duty collection at 12:00 a.m. ET on February 24, 2026.
However, the reset was immediate and strategic.
On the same day, President Trump issued a Proclamation imposing a new:
10% global tariff on all U.S. imports under Section 122 of the Trade Act of 1974.
This new tariff took effect at 12:01 a.m. ET on February 24, 2026.
Important:
The 10% Section 122 tariff:
Applies to imports from every country
Is applied in addition to normal HTS duties
Stacks on top of any existing Section 301 or Section 232 tariffs
President Trump has publicly stated the rate could increase to 15%, but as of February 26, the enforced rate remains 10%.
The 150-Day Clock: What Happens on July 24, 2026?
Section 122 tariffs are temporary.
They automatically expire after 150 days unless Congress approves an extension.
That means:
The current 10% global tariff will expire on July 24, 2026, unless extended.
However, administration officials have indicated they may use this 150-day window to initiate new Section 301 investigations — potentially reinstating higher country-specific tariffs before July.
For sourcing teams, this means the current 10% rate may not represent long-term stability.
Refund Uncertainty: Will Importers Get Money Back?
Although the Supreme Court ruled IEEPA tariffs unlawful, it did not address refunds.
The case must now move:
Back to the Federal Appeals Court
Then to the Court of International Trade (CIT)
Where a decision on refunds will be issued
A ruling may not come until late Spring 2026 at the earliest.
Key Refund Risks
Refund eligibility may depend on procedural status.
CBP may deny refunds for entries already liquidated.
Administrative delays are likely even if refunds are ordered.
Over $175 billion in duties across 300,000+ importers would need processing.
Recommended Action for Importers
To preserve potential refund rights:
Protest the liquidation of all entries affected by former IEEPA tariffs.
File protests even for entries already liquidated.
Failure to file could jeopardize eligibility if refunds are later authorized.
November 2025: U.S.–China Deal Eases Pressure
Prior to the February reset, the U.S. and China reached a trade agreement that lowered tariffs on Chinese travel goods.
Effective November 10:
Fentanyl-related tariffs dropped from 20% to 10%.
Total tariffs fell from approximately 73% to 63%.
Additional port fees on Chinese-operated vessels were suspended through 2026.
The 10% reciprocal (IEEPA) tariff remained in place at the time.
Now, with IEEPA removed and replaced by Section 122:
China is subject to the same 10% global tariff — plus existing Section 301 and Section 232 duties where applicable.
The deal marked the first meaningful tariff rollback since 2020.
Section 232 Expansion: Metal Components Under Pressure
On August 18, 2025, Section 232 tariffs expanded to cover 407 additional steel and aluminum products.
For travel goods manufacturers, this affects:
Luggage frames
Telescopic handles
Reinforced wheel housings
Structural metal components
Steel and aluminum tariffs remain:
50% for most countries
25% for the United Kingdom
Metal-reinforced luggage designs may continue facing elevated input costs.
India & Other High-Risk Markets
On August 27, the U.S. imposed a 25% tariff on certain imports from India related to Russian oil purchases.
At that time, total duties on Indian travel goods reached approximately 50%.
Under the February 24 reset:
India now falls under the 10% Section 122 tariff (unless otherwise subject to 232 or 301).
However, future Section 301 investigations could re-escalate country-specific rates.
Compliance & Enforcement Risks
Despite tariff resets, compliance rules remain strict.
Origin Rules
“Substantial transformation” standards remain unchanged.
Minor assembly or transshipment does not change country of origin.
Transshipment Penalties
Transshipped goods may face penalties up to 40%.
Enforcement definitions remain vague — especially under prior Vietnam agreements.
De Minimis Ended
As of August 29, 2025:
All shipments are subject to duties.
Low-value exemptions no longer apply.
Supply Chain & Cost Pressures in 2026
Beyond tariffs, sourcing teams continue facing:
$50/ton surcharges on China shipments (since October 2025)
Container and chassis tariffs impacting freight rates
Reduced Asia–U.S. route capacity
Ongoing port congestion volatility
Even as headline tariff rates fall, total landed costs remain elevated.
Strategic Outlook: Tariffs Are Shifting, Not Disappearing
While the Supreme Court eliminated IEEPA authority, tariff risk has not disappeared — it has evolved.
The administration has demonstrated willingness to pivot between:
IEEPA
Section 122
Section 301
Section 232
For sourcing teams, this suggests:
Tariff volatility may remain structural in 2026.
Supplier contracts signed now may require flexibility clauses.
Diversification is no longer just cost-driven — it is risk-driven.
The next few months are likely to bring:
New Section 301 investigations
Public hearings
Possible re-escalation before July 24
Strategic sourcing decisions should account for this uncertainty.
Actionable Steps for Luggage & Travel Goods Buyers
To reduce exposure in 2026:
1. Review HTS Classifications
Misclassification risk increases during tariff transitions.
2. Protest IEEPA Entries
Preserve refund eligibility.
3. Model Scenarios Beyond 10%
Build contingency budgets for possible 15% or renewed 301 tariffs.
4. Diversify Production
Explore suppliers in lower-risk regions.
5. Strengthen Supplier Contracts
Include tariff adjustment clauses.
6. Monitor Section 301 Announcements
Expect investigations before July 24.
Useful sources: