Confused about how US tariffs affect your import costs? We break down what's still in force after the Supreme Court ruling — and give you a free calculator to get your numbers right in 2 minutes.
If you import goods into the United States, the tariff landscape has never been more uncertain. In 2025, sweeping new tariffs were imposed. In February 2026, the Supreme Court struck down a large portion of them. Then new tariffs were imposed under a different legal authority — and a federal court struck those down too. This guide explains where things stand now, what still applies, and how to calculate your real landed cost.
The short version: Section 301 tariffs on Chinese goods remain fully in force. Everything else is in legal flux.
In February 2026, the US Supreme Court ruled 6–3 that the IEEPA (International Emergency Economic Powers Act) does not give the President authority to impose tariffs. This struck down the "reciprocal tariffs" and "fentanyl tariffs" imposed in 2025. Trump then imposed new 10% global tariffs under Section 122 of the Trade Act of 1974 — a federal court has now also ruled those illegal. Both cases are being appealed. Section 301 tariffs (imposed 2018–2019) were not affected and remain in force.
Each tariff type has a different legal status right now — some in force, one temporary, two already removed. The table further down summarises all of them at a glance.
Until 2025, shipments under $800 entered the US duty-free under the de minimis rule (Section 321). This is gone — eliminated for China in May 2025 and globally in August 2025. If you previously imported small batches or samples from China duty-free, every shipment now requires formal customs entry, broker fees, and full duty payment. This added roughly $4–$25 per parcel in fees plus the underlying tariff, and increased transit times by 2–5 days.
If you import from China, your effective duty rate is now standard duty + Section 301 (7.5–25%), plus the Section 122 surcharge (10%) while it remains in force until July 2026. The reciprocal tariffs you may have been paying are gone — and you may be entitled to a refund. Check the CBP CAPE portal for refund claims.
Applied to Chinese-origin goods across hundreds of HTS codes (HTS = Harmonized Tariff Schedule, the numerical code that classifies every product imported into the US). Most consumer goods fall into List 3 or List 4A, which carry 25% duties. These were not affected by the Supreme Court ruling and remain fully in force. Check the USTR (Office of the United States Trade Representative) exclusion list before assuming the full rate applies.
Introduced under Executive Orders in 2025, these were calculated based on the trade deficit with each country. The Supreme Court ruled in February 2026 that IEEPA does not authorise tariffs. These duties are no longer payable and importers who paid them are entitled to refunds via the CBP CAPE portal.
After the Supreme Court ruling, Trump imposed a 10% global tariff under Section 122 of the Trade Act of 1974. A federal court ruled this also illegal in May 2026. The case is under appeal — the tariff's status is currently uncertain. Verify with your customs broker before including this in your cost calculations.
These are product and country specific and were not affected by any court rulings. If your supplier's product is subject to an AD/CVD order, the rates can be extreme — solar panels, steel products, tyres, and certain chemicals have seen rates exceeding 100%. Check the USITC (US International Trade Commission) database for your HTS code.
Tariffs on steel (25%) and aluminium (10%) from most countries remain in force and were not affected by the court rulings.
| Tariff / rule | Typical rate | Status (June 2026) |
|---|---|---|
| Standard duty Baseline, based on HS code |
0–6.5% | In force |
| Section 301 China-specific, since 2018 |
7.5–25% | In force |
| Section 122 Temporary global surcharge |
10% | Expires 24 Jul 2026 |
| Section 232 Steel / aluminium only |
10–25% | In force |
| AD/CVD Anti-dumping, product-specific |
10–200%+ | In force |
| Reciprocal tariffs (IEEPA) Struck down Feb 2026 |
— | Removed · refunds |
| De minimis ($800 duty-free) Ended China May 2025 |
— | Eliminated |
The US landed cost formula has two steps — because duties and freight are calculated separately:
Duty = Product cost (FOB) × combined duty rate
FOB (Free On Board) = the price of the goods at the port of export, excluding international freight and insurance.
Landed Cost = Product cost + Duty + Freight + Brokerage + Last-mile
The critical difference from EU imports: US duties are calculated on the FOB value only — the price of the goods at the point of export, excluding freight and insurance. In the EU, duties are calculated on the CIF value (Cost + Insurance + Freight), which means freight costs increase your duty bill. In the US they do not.
There is also no federal VAT in the US, unlike EU imports where VAT is charged at the border (even if recoverable for registered businesses).
If your freight costs are high relative to your product value (e.g. bulky, low-value goods), the US FOB basis gives you a meaningful cost advantage over EU-destined imports of the same product — all else being equal.
Let's take a concrete example. You're importing 1,000 ceramic mugs from a supplier in Guangdong, China, to Los Angeles.
Order details: 1,000 units · $4.50/unit FOB · $1,200 total freight · $350 customs brokerage
The same order, the same supplier, the same product: $1,575 more in duties — a 22% increase in total landed cost. If you were pricing based on a $7.18 landed cost, your margins just collapsed.
| Category | Typical effective rate (2026) | Impact |
|---|---|---|
| Consumer electronics (China) | 35–50% | High |
| Clothing & apparel (China) | 40–60% | Very high |
| Furniture & home goods (China) | 50–70% | Very high |
| Industrial machinery (China) | 25–45% | High |
| Steel & aluminium products (all) | 25–35% | High |
| Vietnam, Bangladesh origin goods | 10–30% | Medium |
| Mexico origin (USMCA compliant) | 0–5% | Low |
Note: rates above are indicative. Your specific HTS code determines your exact duty rate. Always verify with a licensed customs broker before finalising your cost model.
Moving production from China to Vietnam, Bangladesh, India or Mexico to reduce exposure to Section 301 and reciprocal tariffs. This works — but verify that your new supplier's goods genuinely originate in the new country. Customs fraud via third-country transshipment carries severe penalties.
Where goods pass through an intermediary, US importers can sometimes declare the "first sale" value (manufacturer to intermediary) rather than the final sale value, reducing the dutiable amount. Requires proper documentation and a binding ruling from CBP (US Customs and Border Protection) — the federal agency that enforces US trade laws and collects import duties.
An FTZ is a designated area inside the US that is legally considered outside US customs territory. Goods can be brought into an FTZ without paying duties until they actually enter US commerce.
Practical example: You import 10,000 units of a product from China into an FTZ warehouse in Los Angeles. You sell 3,000 units to US customers — you pay duties only on those 3,000 units. The remaining 7,000 units are re-exported to Canada — you pay zero US duties on those. Without an FTZ, you would have paid duties on all 10,000 units at the point of import.
FTZs are particularly useful for distributors who serve both US and international markets, or for goods that will be further processed before entering US commerce. The application process is managed by the US Foreign-Trade Zones Board.
Minor differences in how a product is classified can mean significantly different duty rates. A qualified customs attorney can review your classification and potentially identify lower-rate alternatives — especially if your product has been self-classified.
Many Chinese suppliers are under pressure and willing to reduce FOB prices to retain business. Since duties are calculated on the FOB value, a lower supplier price directly reduces your duty bill. A 10% reduction in FOB price reduces your duty by 10% × duty rate.
Undervaluing goods on customs declarations is fraud, not a strategy. CBP uses extensive data analytics to identify undervaluation and the penalties — fines, seizure, and criminal liability — far exceed any duty savings.
US import duties are calculated by stacking multiple layers: the standard MFN duty based on the HS code, plus Section 301 tariff for Chinese goods (typically 25%), plus any reciprocal or sectoral tariffs (Section 232 on steel and aluminum, for example). All layers apply to the FOB value — not CIF — meaning freight and insurance are excluded from the dutiable base in the US. This is different from the EU and UK, which use CIF.
The US uses FOB valuation for customs duty calculation. Only the cost of the goods at the port of departure is used to calculate duties — international freight and insurance are excluded. This is different from the EU, UK, Australia, and most of the world, which use CIF (Cost + Insurance + Freight). For the same shipment, US duties are typically lower than EU duties because the dutiable base is smaller.
Section 301 is an additional tariff applied to goods imported from China since 2018, following a US investigation into Chinese trade practices. Most product categories carry a 25% Section 301 tariff on top of the standard import duty. For example, home textiles with a 6.3% MFN duty face a combined effective rate of approximately 31.3% when imported from China. Section 301 does not apply to goods from other countries.
No. Following the November 2025 Trump–Xi trade agreement, Section 301 tariffs remain in force. What was suspended (until November 2026) were certain new tariff increases and additional measures, plus 178 product-specific exclusions were extended. The base Section 301 tariffs from 2018 — including the 25% on most categories — continue to apply in 2026.
The most affected categories include: electronics and consumer technology (25% Section 301), home textiles and apparel (25% Section 301 plus 6-12% MFN duty), furniture (25% Section 301), steel and aluminum products (Section 232 additional 25%), and machinery (varying rates). Some categories like books, certain medical devices, and goods covered by Section 301 exclusions retain lower rates. Always verify with the official Harmonized Tariff Schedule before placing orders.
The free Import Cost Calculator lets you enter your exact product cost, freight, duty rate and other costs — and calculates your true landed cost per unit, total cash out, and margin analysis.
For US imports, set the duty rate to your combined effective rate (MFN + Section 301 + reciprocal tariffs). The calculator handles the rest.
Enter your product cost, freight and duty rate. Get your landed cost per unit, break-even price and margin analysis instantly.
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