US Tariffs 2026: What Importers Need to Know
The tariff landscape changed dramatically in 2026. A Supreme Court ruling invalidated most IEEPA tariffs, de minimis was eliminated globally, and a new Section 122 duty is in effect. Here's what every importer needs to know.
What Happened: The Supreme Court Ruling That Changed Everything
In February 2026, the Supreme Court ruled in Learning Resources, Inc. v. Trump that IEEPA tariffs were unconstitutional. This single decision invalidated the legal basis for most of the tariffs imposed since 2025 — an estimated $166 billion in duties collected from over 330,000 businesses.
The ruling means that importers who paid IEEPA-based tariffs may be entitled to refunds. US Customs and Border Protection is processing claims, but the process requires proper documentation and filing within statutory deadlines.
Current US Tariff Structure (March 2026)
To understand real impact, look at tariff stacking by HS chapter — because multiple duties apply at once. Here are five common import categories with their effective 2026 duty stacks for China-origin goods.
Electronics (HS Chapter 85 — smartphones, laptops, components): Base MFN rate is 0% for most finished electronics under GATT. Section 301 List 3 adds 25% on components and List 4A adds 7.5% on finished consumer devices. Some semiconductor inputs face 50% under the 2024 Biden-era action. Effective total: 7.5–50% depending on the exact HTS code.
Apparel and clothing (HS Chapters 61–62): Base MFN rate is 10–32% depending on fiber content. Section 301 List 3 adds 25%. No Section 122 exemption applies to apparel. Effective total: 35–57% on China-origin garments. Vietnam-origin avoids Section 301 but still faces MFN (10–32%) plus Section 122 (10–15%).
Furniture (HS Chapter 94): Base MFN rate is 0% for most wood furniture. Section 301 List 3 adds 25%. Section 232 can apply if the piece contains steel components. Effective total: 25–35% for typical wood furniture from China.
Machinery and industrial equipment (HS Chapters 84–85): MFN rates range 0–3.5% for most industrial equipment. Section 301 rates of 25% apply to manufacturing equipment on Lists 1–3. Some capital goods have active exclusions — check the USTR exclusion database before booking. Effective total: 3.5–28.5%.
Steel and aluminum products (HS Chapters 72–76): Section 232 applies universally at 25% on steel and 10–25% on aluminum. For China-origin, add Section 301 at 25%. Combined rate: 50% on most Chinese steel products. EU and Japan have quota-based exclusions that reduce Section 232 to 0% within quota limits.
| Tariff Type | Rate | Status |
|---|---|---|
| Section 122 Global Duty | 10-15% | Active — expires July 24, 2026 |
| Section 301 (China) | 7.5-25% | Under new investigation (March 2026) |
| Section 232 (Steel/Aluminum) | 25% / 10% | Active — some EU exclusions |
| USMCA-compliant (Mexico/Canada) | 0% | Active — renegotiation in 2026 |
| EU-origin goods | MFN rates (0-6%) | No FTA in force |
| Vietnam/India/Indonesia | MFN rates + Section 122 | Active — under Section 301 review |
The De Minimis Elimination: What It Means for Your Shipments
As of February 24, 2026, the US eliminated the $800 de minimis exemption globally. Every single import shipment — regardless of value — now requires formal customs entry with HTS classification, country of origin verification, and full duty payment.
This affects e-commerce brands, small importers, and any company that shipped individual parcels under $800 to avoid duties. The impact is massive: millions of shipments that previously cleared customs automatically now need a licensed customs broker.
Consider a sample tariff stack for a China-origin parcel worth $200 under the new rules. Before August 2025, that parcel entered duty-free. After February 24, 2026: base MFN duty on a garment (HTS 6109.10.00) is 16.5%, Section 301 List 4A adds 7.5%, Section 122 adds 10%, and MPF has a $31.67 minimum for formal entry. Total duties on a $200 garment: roughly $68–$75, plus $150–$300 in customs broker fees. The effective landed cost of that $200 item roughly doubles.
For cross-border e-commerce, this means your pricing model must absorb landed-cost increases or shift to a broker consolidation strategy. Some brands now pre-clear goods in bulk at the port — shifting from a de minimis postal flow to a formal warehouse-and-distribute model. This requires a licensed customs broker, a US EIN, and an HTS classification for every SKU in your catalog.
The August 29, 2025 date was when CBP began actively rejecting informal entries below $800 that previously cleared automatically. Businesses that continued using the postal channel after that date risked cargo holds, formal entry demands, and retroactive duty assessments.
Need Help Navigating 2026 Tariffs?
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How to Claim IEEPA Tariff Refunds
- Gather your entry documentation: Collect all customs entry summaries (CF-7501) for shipments where IEEPA tariffs were paid. You need the entry number, date, HTS code, and duty amount for each.
- File a protest with CBP: Submit CBP Form 19 (Protest) within 180 days of liquidation for each entry. Include the Supreme Court ruling citation and your calculation of the refund amount.
- Work with your customs broker: Your customs broker or freight forwarder can file protests in bulk on your behalf. This is significantly faster and reduces the risk of errors that could delay your refund.
- Monitor refund processing: CBP is processing refunds in batches. Timeline varies from 30-180 days depending on volume and complexity. Your broker can track the status of each protest.
Strategies to Minimize Your Tariff Exposure in 2026
- Proper HTS classification — Many importers overpay duties because their goods are classified under the wrong HTS code. A tariff review can often reduce rates by 5-15%.
- Country of origin engineering — If your product has components from multiple countries, proper origin determination can qualify for preferential treatment under FTAs.
- Foreign Trade Zones (FTZ) — Importing into an FTZ defers duties until goods enter US commerce. Goods re-exported from an FTZ pay zero duties.
- First Sale valuation — If your supply chain has multiple sales before import (factory → trader → importer), you may use the first sale price as the customs value, reducing the dutiable amount.
- Bonded warehousing — Store goods in a bonded warehouse and pay duties only when goods are withdrawn for domestic sale. Useful for managing cash flow.
- USMCA and FTA utilization — Ensure you claim all available preferential tariff treatment. Many importers leave money on the table by not filing proper FTA certificates.
What's Coming Next: Section 301 Investigations in 2026
In March 2026, the US launched new Section 301 investigations targeting imports from China, Vietnam, Taiwan, Mexico, Japan, the EU, and dozens more countries. These investigations could result in new targeted tariffs within 6-12 months.
Importers should prepare by: diversifying sourcing, pre-qualifying alternative suppliers, and working with a customs broker who monitors tariff developments and can adjust classification strategies proactively.
US Tariffs 2026 FAQ
What are the current US import tariffs in 2026?
As of 2026, US importers face a layered tariff stack. (1) Base MFN duty — the HS-specific rate in HTSUS, typically 0-25%. (2) Section 301 China tariffs — 7.5-25% on Lists 1-4A products from China, with some items elevated to 50-100% in 2024-2025 actions (EVs, lithium batteries, solar cells, semiconductors, steel, aluminum). (3) Section 232 steel/aluminum — 25% on steel, 10-25% on aluminum, applicable to most origins. (4) IEEPA reciprocal tariffs introduced 2025 — country-specific rates ranging 10-50% depending on trade relationship, superseded by deals where negotiated. (5) Section 122 balance-of-payments tariffs (temporary). (6) MPF 0.3464% and HMF 0.125%. Effective landed duty on a China-origin product can now exceed 50%. Accurate HS classification and country-of-origin documentation are the only legitimate reduction tools.
How can I reduce my US tariff exposure in 2026?
Six legitimate levers, in order of impact. (1) Reclassify — review HS codes with a licensed classifier; a wrong digit can cost 10-20% in duty. (2) Country-of-origin engineering — move substantial transformation (not just finishing) to a lower-tariff country; requires real manufacturing, not repackaging. (3) First-sale valuation — if buying from a middleman, declare the manufacturer’s price to you if you qualify under CBP’s first-sale rule. (4) USMCA qualification — verify Mexican/Canadian manufacturing meets regional value content thresholds; properly claimed, duty drops to 0%. (5) FTZ/bonded warehouse — defer duty until goods leave for US commerce; export re-shipments pay zero. (6) Duty drawback — recover up to 99% of duties on goods later exported. Avoid transshipment fraud — CBP actively audits and penalties are severe.
Do USMCA goods still enter duty-free in 2026?
Yes, goods that genuinely qualify under USMCA enter the US duty-free. The qualification is strict: the good must meet the applicable Regional Value Content (RVC) threshold, the tariff-shift rule, or the specific product rule in USMCA Annex 4-B for its HS code. Automotive goods have stricter rules (75% RVC for passenger vehicles, 70% for light trucks, with Labor Value Content requirements). Importers must have a valid Certificate of Origin signed by the producer, exporter, or importer, with supporting production records available for 5 years. CBP is actively auditing USMCA claims in 2025-2026 — unsupported claims trigger duty recapture plus penalties. If your Mexican supplier is simply repackaging Chinese goods, the USMCA claim will fail and you’ll owe full duty plus Section 301.
Should I switch suppliers to avoid China tariffs?
Maybe — but run the math first. A full supplier switch typically costs 6-18 months of lead time, tooling requalification (USD 25,000-500,000 depending on complexity), engineering resources, and quality-ramp losses. Compare against duty savings: at 25% Section 301, you need at least USD 500,000 per year of affected imports to justify a full switch within 12 months. Partial diversification (second-source to Vietnam, India, Mexico, Thailand) de-risks supply without abandoning your Chinese base — 30/70 or 50/50 splits are common. Watch for transshipment temptation: routing Chinese goods through a third country without substantial transformation is fraud under CBP rules and invites seizure plus criminal liability. Legitimate country-of-origin change requires real manufacturing transformation at the new location.
Can I get a refund for IEEPA tariffs I already paid?
Yes. The Supreme Court ruled IEEPA tariffs unconstitutional. File a CBP protest (Form 19) within 180 days of liquidation for each affected entry. Your customs broker can handle this in bulk.
What is Section 122 and how long does it last?
Section 122 of the Trade Act of 1974 allows a 150-day import duty of 10-15% on all goods. It took effect after the Supreme Court ruling and expires July 24, 2026 unless renewed or replaced.
Do USMCA goods still enter duty-free?
Yes. USMCA-compliant goods from Mexico and Canada are exempt from Section 122 duties. Proper rules of origin documentation is required.
How does de minimis elimination affect my e-commerce imports?
Every shipment now requires formal customs entry, regardless of value. You need HTS codes, country of origin verification, and a licensed customs broker. No exceptions.
Should I switch suppliers to avoid tariffs?
Possibly. A tariff engineering analysis can identify whether alternative sourcing from FTA partners, tariff-advantaged countries, or nearshoring options would reduce your total landed cost. We offer free tariff exposure assessments.
What Section 301 tariffs are still active on China?
As of March 2026, fentanyl-related tariffs on Chinese goods are at 10% (reduced from 20% under a November 2025 agreement). New Section 301 investigations launched in March 2026 could result in additional targeted tariffs.
What are the current US import tariffs in 2026?
US import tariffs in 2026 are governed by a combination of MFN base rates from the HTSUS (Harmonized Tariff Schedule of the United States), Section 301 China tariffs (originally imposed 2018, modified through 2026), Section 232 steel and aluminum tariffs (25% on most steel, 10% on aluminum), reciprocal tariffs introduced in April 2025 (15-50% on imports from countries with US trade deficits), and new IEEPA-based tariffs on Mexico, Canada, and China imposed February 2025 (10-25%). The combined effect: many imports now face 35-60% total duty when accounting for stacked Section 301 + reciprocal + base MFN rates. The 90-day reciprocal tariff pause announced April 2025 has been partially extended for some countries through 2026 but is subject to ongoing trade negotiations. Verify current rates at the time of booking as the regulatory environment is unusually volatile.
How do Section 301 China tariffs work in 2026?
Section 301 tariffs were originally imposed by the Trump administration in 2018-2019 in four lists (List 1: 25% on $34B in goods, List 2: 25% on $16B, List 3: 25% on $200B initially at 10%, List 4A: 7.5% on $120B). The Biden administration maintained most of these rates and added new tariffs on Chinese EVs (100%), batteries (25-100%), semiconductors (50%), solar cells (50%), and steel (25%) in 2024. The 2025 Trump administration added additional 10-20% on top of existing rates. In 2026, total Section 301 duty for many Chinese goods exceeds 50%. Our partner network helps importers explore mitigation strategies: tariff engineering (modifying products to qualify for lower HTS codes), first sale valuation (reducing the dutiable value), foreign trade zone (FTZ) routing, and substantial transformation in third countries (Mexico, Vietnam, Thailand) to legally avoid Section 301.
Which countries are affected by US reciprocal tariffs in 2026?
The April 2025 reciprocal tariff order targets countries based on their bilateral trade deficit with the United States. Affected countries include: China (additional 34% on top of existing tariffs, totaling 54%+ in many categories), EU (20% additional), Vietnam (46%), Taiwan (32%), Japan (24%), India (26%), South Korea (25%), Thailand (36%), Switzerland (31%), Indonesia (32%), Malaysia (24%), Cambodia (49%), Bangladesh (37%). Mexico and Canada have separate IEEPA-based 25% tariffs (with USMCA exemptions for compliant goods). The UK got a baseline 10%. The 90-day pause announced April 9, 2025 reduced most reciprocal tariffs to a 10% baseline for negotiating countries while maintaining 145% on China (later modified). The situation continues to evolve — check status before each shipment.
How can importers reduce US tariff exposure in 2026?
Several strategies can legally reduce US tariff exposure: **Tariff engineering** — modifying product specifications to qualify for lower HTS codes (e.g., adding components, changing assembly steps). **First sale rule** — using the manufacturer-to-middleman price as the dutiable value instead of the middleman-to-importer price, often reducing dutiable value by 20-35%. **Foreign Trade Zones (FTZ)** — bringing goods into US-designated FTZs without immediate duty payment, only paying when goods leave the zone for US consumption (avoiding duty on re-exports and inverse-flow operations). **Substantial transformation in third countries** — moving final manufacturing to Mexico, Vietnam, Thailand, or Cambodia where Section 301 doesn't apply (must demonstrate genuine substantial transformation, not just trans-shipment). **USMCA qualification** — ensuring Mexican-made goods meet USMCA rules of origin for duty-free treatment. **Duty drawback** — recovering up to 99% of duties on re-exported goods. Our supply chain advisory partners model the cost impact of each strategy for your specific HTS codes and supply chain footprint.
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