Understanding U.S. Import Tariffs
For global manufacturers looking to enter the U.S. market, understanding import tariffs is essential to accurate pricing and profitability. This comprehensive guide covers everything you need to know about U.S. tariffs.
How U.S. Tariffs Work
U.S. tariffs are taxes imposed on imported goods, collected by U.S. Customs and Border Protection (CBP) at the time of entry. The rate you pay depends on:
- Product classification - Your HTS (Harmonized Tariff Schedule) code determines the base rate
- Country of origin - Where the product was manufactured affects applicable tariffs
- Trade agreements - USMCA, GSP, and other programs may reduce or eliminate duties
- Special tariffs - Section 301 (China), Section 232 (steel/aluminum) may add extra duties
Current Tariff Rates by Category
Base tariff rates vary significantly by product type:
- Industrial machinery: 0-6%
- Electronics: 0-5%
- Auto parts: 2.5-8%
- Textiles: 7-32%
- Chemicals: 0-8.5%
Section 301 Tariffs (China)
Products manufactured in China face additional tariffs ranging from 7.5% to 25% on top of base rates. Lists 1-4A cover most product categories. Some exclusions exist for products with no viable alternative source.
USMCA Benefits (Mexico/Canada)
Products manufactured in Mexico or Canada may qualify for duty-free treatment under the USMCA agreement if they meet rules of origin requirements:
- Regional Value Content (RVC) thresholds
- Tariff shift requirements
- Specific product rules for certain sectors
How to Find Your Tariff Rate
- Determine your HTS code using the official USITC database
- Look up the base rate in the Harmonized Tariff Schedule
- Check for applicable trade program rates
- Add any special tariffs (Section 301, 232, etc.)
- Calculate the total duty rate
Tips for Tariff Optimization
- First Sale Valuation - Use the first sale price when buying through intermediaries
- Foreign Trade Zones - Defer or reduce duties using FTZ benefits
- Duty Drawback - Recover duties on re-exported goods
- Classification Review - Ensure products are correctly classified for lowest legitimate rate
Get Your Landed Cost Analysis
Understanding tariffs is just one part of calculating your true landed cost. Our Landed Cost Snapshot provides a complete analysis including duties, freight, handling, and all other costs to deliver your products to U.S. buyers.