USA Slaps 10% Surcharge on Imports as Fuel and Trade Costs Rise

The United States has formally notified the World Trade Organization (WTO) of a new 10 percent import surcharge on goods from nearly all trading partners, marking a notable shift after months of unilateral tariff actions that drew legal and international scrutiny.

At a May 5 meeting of the WTO Committee on Balance-of-Payments Restrictions, the United States said the surcharge was necessary to address “fundamental international payment problems” and balance-of-payments deficits. The measure took effect on February 24, 2026, under Section 122 of the US Trade Act of 1974 and is scheduled to expire in July unless extended by Congress.

The pivot appears tied to mounting legal pressure against previous tariff measures implemented under the International Emergency Economic Powers Act (IEEPA). According to reports, the US Supreme Court agreed earlier this year to hear a challenge questioning whether broad tariff powers exercised by the executive branch exceeded constitutional limits.

Faced with uncertainty over the legality of its earlier tariff regime, the White House reportedly turned to Section 122, a lesser-used law that explicitly permits temporary import surcharges tied to balance-of-payments concerns.

Several WTO members welcomed the United States’ willingness to engage in consultations under established trade rules. However, concerns were also raised regarding the necessity of the measure and its broader effect on global trade.

The WTO framework allows countries facing balance-of-payments difficulties to temporarily impose import restrictions, particularly price-based measures such as surcharges.

Still, some economists view the American justification as unusual because the US dollar remains the world’s dominant reserve currency. Unlike countries such as Belize, which depend on maintaining sufficient US-dollar reserves to support fixed exchange rates and finance imports, the United States largely operates within a global system that uses its own currency for trade and finance.

For Belize, a balance-of-payments problem could threaten the country’s ability to maintain its currency peg or pay for imports such as fuel and food. The American concern, analysts argue, is less about foreign-currency shortages and more about long-term trade deficits, manufacturing dependence, and geopolitical competition, especially with China.

The development comes amid rising global oil prices linked to the widening US-Israeli-Iran conflict, which has increased fuel and shipping costs worldwide and added inflationary pressure on smaller import-dependent economies, including Belize.