Question 1

What is a tariff and how does it work?

Accepted Answer

A tariff is a tax imposed by a government on imported goods. When products enter the United States, the importer must pay duties based on the product's declared value, its Harmonized Tariff Schedule (HTS) classification, and the country of origin. Tariffs serve multiple purposes: they generate government revenue, protect domestic industries from foreign competition, and can be used as leverage in trade negotiations. The total duty you pay is the sum of several layers including base MFN rates, special tariffs (like Section 301 or 232), reciprocal tariffs, and processing fees.

Question 2

What are Section 301 tariffs on Chinese imports?

Accepted Answer

Section 301 tariffs are additional duties imposed specifically on imports from China, authorized under the Trade Act of 1974. These tariffs were originally implemented to address unfair trade practices including intellectual property theft and forced technology transfer. As of 2026, Section 301 rates range from 25% on most product categories to 100% on automotive parts and electric vehicles from China. Steel and aluminum from China are excluded from Section 301 because they fall under the separate Section 232 tariff instead. These tariffs stack on top of the base MFN duty rate.

Question 3

How do reciprocal tariffs affect import costs in 2026?

Accepted Answer

Reciprocal tariffs are country-specific additional duties that vary widely. In 2026, China faces the highest reciprocal rate at 145%, while countries like the EU face 20%, Canada and Mexico face 25%, Vietnam faces 46%, and most other countries face a baseline 10% rate. Reciprocal tariffs apply to all product categories except steel and aluminum (which are covered by Section 232 instead). These tariffs are layered on top of base duty rates and any applicable Section 301 tariffs, which means imports from China can face total effective rates exceeding 180%.

Question 4

Has the de minimis exemption been eliminated?

Accepted Answer

The de minimis exemption, which previously allowed imports valued under $800 to enter the US duty-free, has been significantly restricted. As of 2025, reciprocal tariffs apply to all imports regardless of value, effectively eliminating the de minimis loophole. Additionally, imports from China that previously benefited from de minimis now face either a flat tariff rate or per-item fees. This change particularly impacts direct-to-consumer e-commerce shipments from platforms like Temu and Shein, which relied heavily on the de minimis loophole to ship low-value packages duty-free.

Question 5

What is the Section 232 tariff on steel and aluminum?

Accepted Answer

Section 232 tariffs are imposed under the authority of the Trade Expansion Act of 1962 to protect national security interests. The current rate for steel and aluminum imports is 50%, regardless of the country of origin. Importantly, Section 232 replaces (rather than stacks with) the reciprocal tariff for steel and aluminum products. However, the base MFN duty rate and processing fees (MPF, HMF) still apply. This means steel and aluminum imports face a different tariff structure than other product categories.

Question 6

How can I legally reduce import tariff costs?

Accepted Answer

There are several legal strategies to reduce import tariff costs. Foreign Trade Zones (FTZs) allow you to defer, reduce, or eliminate duties on imported goods. Tariff engineering involves modifying product design or classification to qualify for lower duty rates. Duty drawback programs refund up to 99% of duties paid on imported goods that are later exported. The First Sale Rule lets you value goods based on the first sale price in a multi-tiered transaction rather than the final sale price. Bonded warehousing lets you store imported goods without paying duties until they enter US commerce. Consult a licensed customs broker for strategies specific to your situation.

Question 7

What are Foreign Trade Zones (FTZ) and how do they help?

Accepted Answer

Foreign Trade Zones are designated areas within the United States that are considered outside US customs territory for duty purposes. Companies operating in FTZs can import goods, store them, and even manufacture with them before formally entering them into US commerce. Benefits include duty deferral (you don't pay until goods leave the FTZ), duty elimination on goods that are re-exported, and inverted tariff benefits where you can pay the lower duty rate on finished products rather than higher rates on components. There are over 190 FTZs across the US, typically located near ports and industrial areas.

Question 8

How accurate is this tariff calculator?

Accepted Answer

This calculator provides estimates based on average HTS duty rates by broad product category, current Section 301, Section 232, and reciprocal tariff rates, and standard CBP processing fees. Actual duties may differ because HTS classification is extremely granular (over 10,000 line items) and your specific product may have a higher or lower base rate than the category average. Some products have specific exclusions, exemptions, or preferential rates under free trade agreements. For binding tariff determinations, consult a licensed customs broker or use the official USITC Harmonized Tariff Schedule database.

Country	Reciprocal Tariff %	Section 301 (China Only)	Section 232	Notes
China	145%	25 - 100%	50%	Highest total tariff burden
European Union	20%	N/A	50%	Broad product coverage
Canada	25%	N/A	50%	USMCA trade partner
Mexico	25%	N/A	50%	USMCA trade partner
Japan	24%	N/A	50%	Major auto exporter
South Korea	25%	N/A	50%	KORUS FTA partner
Vietnam	46%	N/A	50%	Major manufacturing hub
India	26%	N/A	50%	Developing economy rate
Taiwan	32%	N/A	50%	Semiconductor supplier
Thailand	36%	N/A	50%	ASEAN member
Other	10%	N/A	50%	Baseline universal rate

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2026 US Tariff Rates by Country

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