Tariff Rates | A Complete Guide to US Import Tariffs in 2026

Tariff rates are one of the most talked-about topics in global trade right now, and for good reason. The United States average effective tariff rate stood at 11.0% as of early 2026, the highest level since 1943, according to the Yale Budget Lab. Whether you are a business owner importing goods, a student studying economics, an exporter planning shipments, or simply someone trying to understand why prices are rising, tariff rates directly affect you.

This guide explains what tariff rates are, how they are calculated, what the current rates look like by country and product, and what changed in 2025 and 2026 that made this topic impossible to ignore.

What Are Tariff Rates?

Tariff rates are the percentage of a product's value charged as a tax when that product crosses an international border into a country. When the United States imports a product from another country, the importer pays a tariff to US Customs and Border Protection (CBP) based on the product's declared value and its applicable tariff rate.

In simple terms: if you import $100,000 worth of goods with a 10% tariff rate, you pay $10,000 in duties before those goods can enter the US.

Tariffs serve several purposes. They raise government revenue, protect domestic industries from foreign competition, and are used as tools in trade negotiations and foreign policy. The word "tariff" itself comes from the Arabic word ta'rifa, meaning notification or inventory.

What most people do not realise is that tariff rates are not a single number. The rate applied to any shipment depends on three things: what the product is (its HTS code), where it came from (country of origin), and which trade agreements or special measures currently apply.

How Are Tariff Rates Calculated?

Every imported product is assigned a Harmonized Tariff Schedule (HTS) code, a standardised classification system used by over 200 countries. That code determines the base MFN (Most Favored Nation) duty rate.

What is the MFN rate? The MFN rate is the default tariff rate the US applies to imports from all World Trade Organisation (WTO) member countries equally. It is set by product category, not by country. A cotton T-shirt from India and a cotton T-shirt from Brazil face the same MFN rate because the HTS code is the same.

How is the total tariff rate calculated?

The total duty a shipment pays is often a combination of multiple layers stacked on top of each other:

Total Tariff = MFN Base Rate + Any Section 232 Rate + Any Section 301 Rate + Section 122 Global Surcharge

This stacking is what makes tariff rates in 2026 so much higher than they were even two years ago. A single shipment from China can face all four layers simultaneously.

Types of US Tariff Rates

Understanding the different types of tariff rates is essential for anyone dealing with imports or trade policy.

MFN (Most Favored Nation) Rates

The base layer. Applied equally to all WTO members unless a trade agreement provides a lower rate. The US average MFN rate across all products is approximately 3.3%, but individual product rates range from 0% on many industrial goods to over 30% on some agricultural and textile products.

Preferential Rates (Free Trade Agreements)

The US has Free Trade Agreements (FTAs) with 20 countries including Mexico and Canada (USMCA), South Korea (KORUS), Australia (AUSFTA), and several others. Goods that qualify under these agreements pay 0% or reduced tariff rates. As of February 2026, approximately 86.3% of imports from Canada and Mexico were claiming USMCA preference, according to Penn Wharton Budget Model data.

Section 232 Tariffs (National Security)

Imposed under Section 232 of the Trade Expansion Act of 1962. These apply globally based on product category regardless of where the goods come from. Current Section 232 rates as of May 2026:

• Steel: 50%
• Aluminum: 50%
• Automobiles and auto parts: 25%
• Semiconductors: 25%
• Copper: 50%
• Pharmaceuticals (patented): Up to 100% (phasing in 2026)

Section 301 Tariffs (China Only)

Applied specifically to Chinese-origin goods under Section 301 of the Trade Act of 1974, citing unfair trade practices. Rates range from 7.5% to 100% depending on the product category. These stack on top of MFN rates and Section 232 rates where applicable.

Section 122 Global Surcharge (Temporary)

A 10% across-the-board surcharge on most imports from all countries, effective February 24, 2026. This replaced the IEEPA tariffs struck down by the US Supreme Court on February 20, 2026. It is scheduled to expire automatically around July 24, 2026 unless Congress acts to extend it.

Current US Tariff Rates by Country

Use the search table below to find tariff information for any country. Data is sourced from USITC, USTR, and CBP and updated monthly.

For product-specific tariff rates by HTS code, use our HTS Code Lookup Tool.

A quick reference for major trading partners as of May 2026:

China - Effective rate approximately 31.6% (Penn Wharton, Feb 2026). Combines MFN + Section 301 + Section 122. Specific products (EVs, solar, semiconductors) face far higher rates.

Mexico / Canada - USMCA-qualifying goods at 0%. Non-qualifying goods face tariffs. Steel and aluminum from both countries: 50%.

European Union - Faces Section 122 10% surcharge + Section 232 on relevant products. Average additional tariff approximately 15%.

India - 25% tariff on all Indian imports effective September 17, 2025. Plus Section 122 10%. Plus Section 232 on relevant products.

Countries with US FTAs - Most qualifying goods at 0% base rate, though Section 232 product-specific rates still apply.

Section 232 Tariff Rates: The Product-Specific Layer

Section 232 tariffs are the most important layer to understand for businesses that import manufactured goods, because they apply globally regardless of which country you are sourcing from.

Steel and aluminum tariffs were raised from 25% to 50% effective early 2026. This single change significantly increased the landed cost for businesses across manufacturing, construction, automotive, and packaging industries throughout the US.

The pharmaceutical tariff, which could reach up to 100% on patented pharmaceutical imports, is being phased in across 2026 for most companies. Businesses that commit to onshoring manufacturing or agree to MFN pricing arrangements may qualify for reduced rates.

An important stacking rule confirmed by the administration: Section 232 tariffs on steel, aluminum, copper, lumber, and semiconductors do not stack on top of the Section 122 global surcharge. You pay one or the other, whichever is higher. For automobiles and auto parts, the same principle applies - they do not stack on Section 122 or other Section 232 tariffs.

Section 301 Tariff Rates: China-Specific

Section 301 tariffs target Chinese goods specifically. They were originally imposed in 2018 and 2019 and have been expanded and modified significantly through 2024 and 2025. Current Section 301 rates on key product categories from China:

• Electric Vehicles: 100%
• Semiconductors: 50%
• Solar cells and modules: 50%
• Lithium-ion EV batteries: 25%
• Steel and aluminum products: 25%
• Ship-to-shore cranes: 25%
• Medical gloves: Up to 100%
• Most other goods: 7.5% to 25% depending on the product list

These rates stack on top of the MFN base rate and apply in addition to Section 232 tariffs where those also apply. A Chinese steel product, for example, can face MFN base rate plus 25% Section 301 plus 50% Section 232, with the Section 122 applying based on the stacking rules.

New Section 301 investigations were initiated in late 2025, which means additional product categories from China may face new or expanded rates in 2026 and 2027.

How Tariff Stacking Works

Tariff stacking is the most misunderstood part of the current system, and misunderstanding it leads to significant under-budgeting on landed costs.

Here is an example for a shipment of finished steel components from China:

• MFN base rate: approximately 3% (product dependent)
• Section 301 (China goods, steel category): 25%
• Section 232 (steel, globally): 50%
• Section 122 stacking rule: does NOT add on top of Section 232 for steel

Total effective rate: approximately 78% on the value of the shipment. Compare that to the same steel product sourced from a USMCA country like Mexico. It faces:

• USMCA rate: 0% (if qualifying)
• Section 232 (steel, globally): 50%
• Section 122: does not stack on Section 232

Total effective rate: 50% The difference in sourcing country alone can mean a 28-percentage-point difference in tariff cost on the same product. That is why supply chain restructuring has accelerated dramatically since 2025.

How Tariff Rates Affect Businesses, Consumers, and Trade

Tariff rates do not stay on the dock. They flow through to businesses, consumers, and the broader economy.

For importers: Higher tariff rates directly increase landed costs. A business importing $5 million of goods annually at an effective rate of 20% pays $1 million in duties before those goods reach their warehouse. That cost either compresses margins or gets passed to customers.

For consumers: The Yale Budget Lab estimates that current tariff rates imply a 1.0% increase in consumer prices in the short run, assuming full passthrough. That translates to an average household burden of approximately $1,050 in 2026, according to the Tax Policy Center.

For exporters: When the US imposes tariffs on imports, trading partners often retaliate with tariffs on US exports. Canadian retaliatory tariffs on US goods, EU tariff responses, and Chinese countermeasures have all affected US exporters in specific sectors.

For supply chains: Businesses have been restructuring sourcing away from high-tariff origins toward FTA countries or domestic production. Countries like Vietnam, India, and Mexico initially absorbed orders shifted from China, though many of these now face their own elevated tariff rates.

For working capital: Higher tariff rates mean larger upfront duty payments at the border. For businesses with long payment cycles or large import volumes, this creates meaningful cash flow pressure.

How to Find the Tariff Rate for Your Product

Finding the exact tariff rate for a specific product requires the right HTS code and the right tools. Step 1 - Find your HTS code The Harmonized Tariff Schedule is searchable at hts.usitc.gov. Every product has a 10-digit US HTS code that determines its MFN base rate.

Step 2 - Check for additional layers Once you have the HTS code, check:

Is the product subject to Section 232? (Steel, aluminum, autos, semiconductors, copper, lumber, pharma) Is the product from China? If yes, check Section 301 rates at ustr.gov Does Section 122 apply? (Most goods, effective Feb 24 2026)

Step 3 - Apply your FTA rate if eligible If you are importing from a country with a US FTA, check whether your product qualifies under the rules of origin. If it does, the MFN rate is replaced by the FTA rate (often 0%). Note that Section 232 rates typically still apply even on FTA goods.

Step 4 - Calculate total landed cost Total duty = (MFN or FTA rate) + (Section 232 if applicable) + (Section 301 if China) + any antidumping or countervailing duties + Merchandise Processing Fee (0.3464% of value, capped at $634.62 per entry).

Key Tariff Rate Events: What Changed in 2025 and 2026

Tariff policy moved faster in 2025 and 2026 than at any point since the 1930s. Here is a brief timeline of the major changes:

1. February 2025 - New tariff actions begin. Canada and Mexico face 25% tariffs on non-USMCA goods. China faces additional tariffs.

2. April 2025 - IEEPA reciprocal tariffs imposed, ranging from 10% to 145% on 60+ countries. The largest unilateral tariff action since the Smoot-Hawley Act of 1930, according to the Yale Budget Lab.

3. May 2025 - US-China Geneva truce reduces China IEEPA rate from 125% to 10%, though Section 301 and 232 tariffs remain in full effect.

4. August 2025 - De minimis exemption suspended. All shipments, including those under $800, now subject to applicable duties.

5. September 2025 - 25% tariff on all Indian imports takes effect.

6. January 2026 - Steel and aluminum tariffs raised from 25% to 50%.

7. February 20, 2026 - US Supreme Court rules 6-3 that IEEPA does not authorise tariffs. IEEPA tariff regime struck down.

8. February 24, 2026 - Section 122 global 10% surcharge imposed as replacement. Covers most imports. Expires approximately July 24, 2026.

9. April 2026 - CBP opens CAPE refund portal. Importers who paid IEEPA tariffs between April 2025 and February 2026 may be eligible for refunds on approximately $166 billion in duties collected.

Frequently Asked Questions About Tariff Rates

What is a tariff rate in simple terms? A tariff rate is the percentage of a product's value charged as a tax when it enters a country. If you import goods worth $100,000 with a 10% tariff rate, you pay $10,000 in duties to customs before the goods are released.

What is the current US tariff rate? The US average effective tariff rate was 11.0% as of early 2026, the highest since 1943, according to the Yale Budget Lab. Individual rates vary significantly by product and country of origin. If the Section 122 global surcharge expires as scheduled in July 2026, the average effective rate is estimated to fall to approximately 8.2%.

What is the difference between MFN rates and actual tariff rates? The MFN rate is the base tariff rate set by product HTS code. The actual tariff rate paid on any shipment can be higher than the MFN rate if additional layers apply - Section 232 (national security), Section 301 (China-specific), or Section 122 (global surcharge). These layers stack, meaning the total rate can be significantly higher than the MFN base.

Do tariff rates apply to all imports? Most physical goods imported into the US are subject to tariff rates. Services, digital products, and financial transactions are generally not subject to customs tariffs. Some categories of physical goods are exempt from specific tariffs - for example, certain energy products, pharmaceuticals, and aerospace components are exempt from the Section 122 surcharge.

What happened to the reciprocal tariffs? The IEEPA reciprocal tariffs, which ranged from 10% to 145% on imports from 60+ countries, were struck down by the US Supreme Court on February 20, 2026. They were replaced by a 10% Section 122 global surcharge effective February 24, 2026.

Can I get a refund on tariffs I already paid? If you paid IEEPA tariffs between April 2025 and February 2026, you may be eligible for a refund. The CBP launched the CAPE refund portal on April 20, 2026. Only importers of record or licensed customs brokers who filed the original entries can submit refund claims.

What is an HTS code and why does it matter? An HTS (Harmonized Tariff Schedule) code is a standardised 10-digit number that classifies every imported product. The HTS code determines the base MFN tariff rate and whether any additional tariffs (Section 232, Section 301) apply. Misclassifying a product under the wrong HTS code can result in paying the wrong duty rate, which can create compliance issues. Look up HTS codes at hts.usitc.gov.

How often do tariff rates change? Under the current policy environment, tariff rates have been changing frequently. Section 232 rates have changed three times in the past 14 months. New Section 301 investigations were initiated in 2025 with outcomes pending in 2026. The Section 122 surcharge has an automatic expiry date. Businesses with significant import volumes should monitor tariff changes actively.