U.S. Tariffs on Malaysia: Semiconductor and Reciprocal

U.S. tariffs on Malaysia imports in 2026 combine an IEEPA Liberation Day reciprocal rate with the looming risk of a Section 232 semiconductor tariff that would directly impact Malaysia’s dominant export sector, semiconductor packaging, testing, and assembly. Malaysia is the eighth-largest U.S. import source and hosts major operations for Intel, Infineon, Texas Instruments, and other semiconductor companies whose Malaysian facilities are at the center of global chip supply chains. This guide covers the complete Malaysia tariff picture and the strategies importers use to manage exposure across electronics, palm oil, rubber, and precision instruments.

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U.S.-Malaysia Trade Snapshot in 2026

Malaysia’s trade relationship with the United States is defined by semiconductors. The Penang manufacturing corridor is often called the “Silicon Valley of Asia” for its concentration of semiconductor back-end operations, packaging, assembly, and testing of chips designed by U.S. firms and fabricated in Taiwan, South Korea, or Europe. Any semiconductor-specific U.S. tariff action has disproportionate Malaysia impact.

Malaysia as a U.S. Trading Partner

The U.S. imported approximately $57 billion in goods from Malaysia in 2024, the eighth-largest import source. Semiconductor and electronic components dominate Malaysia’s U.S. export profile, accounting for approximately 55% of total export value. Intel’s Penang and Kulim assembly and test facilities, Infineon’s Kulim fab, and Texas Instruments’ Kuala Lumpur operations all export directly to U.S. buyers. Our current U.S. tariff rates by country page provides context on Malaysia’s rate profile.

Key Import Categories from Malaysia

  1. Semiconductors and electronic components (HTS Chapter 85): packaged ICs, diodes, transistors, power modules.
  2. Electrical machinery and equipment (HTS Chapter 85): transformers, switches, circuit breakers.
  3. Palm oil and oleochemicals (HTS Chapter 15): refined palm oil, fatty acids, biodiesel feedstock.
  4. Rubber and rubber products (HTS Chapter 40): medical gloves, technical rubber, natural rubber.
  5. Optical instruments and medical devices (HTS Chapter 90): endoscopes, lenses, precision instruments.
  6. Furniture and wood products (HTS Chapter 94): flat-pack furniture, wood flooring.

Current U.S. Tariff Stack on Malaysia Imports

Malaysia’s tariff profile is shaped by IEEPA and the pending Section 232 semiconductor investigation, the latter representing an existential risk to the cost structure of Malaysia’s dominant export sector.

Statutory Authorities in Play

IEEPA Liberation Day (Executive Order 14257, April 2025)

Announced a 24% reciprocal rate on Malaysian goods. Under the 90-day pause, reduced to 10% baseline. Malaysia’s announced rate of 24% is moderate relative to Vietnam (46%) and Thailand (36%). If the pause expires, 24% reinstates. Tracked via Federal Register.

Section 232 semiconductor investigation (Trade Expansion Act §232)

The BIS investigation covers HTS Chapter 85 subheadings 8541-8542 (discrete semiconductors and integrated circuits). Malaysia’s semiconductor sector, concentrated in back-end packaging, assembly, and test, would be directly affected by any 25%+ semiconductor Section 232 tariff. Unlike Taiwan (which makes chips) or South Korea (which makes memory), Malaysia primarily packages and tests chips designed and fabricated elsewhere. The BIS administers the Section 232 investigation framework.

Section 232 steel (25%) and aluminum (10%)

Malaysian steel and aluminum face Section 232 stacked on MFN rates.

MFN/NTR base rates

Semiconductors (HTS 8541-8542), 0% MFN. Palm oil, 0% (Ch 15). Rubber gloves (HTS 4015.12), 0% MFN. Optical instruments, 0-9%. Furniture, 0-7%.

How the Rates Layer on a Single Entry

A Malaysia-packaged Intel microprocessor (HTS 8542.31, MFN 0%) during the IEEPA pause:

  1. MFN base rate: 0%.
  2. IEEPA baseline (90-day pause): +10%.
  3. Section 232 semiconductor (if enacted at 25%): +25%.
  4. Effective rate during pause, pre-Section 232: 10%.
  5. Effective rate post-pause + Section 232: 49%.

Intel, which packages chips in Malaysia for sale to U.S. data centers and PC manufacturers, would face a 49% effective tariff on those chips if both IEEPA and Section 232 semiconductor tariffs fully apply. Our Captain tariff tracker monitors IEEPA and Section 232 semiconductor investigation developments in real time.

Top Affected HTS Chapters and Sectors

Malaysia’s tariff exposure is overwhelmingly concentrated in semiconductors and electronics, a sector that defines the country’s entire export relationship with the United States.

Semiconductors and Electrical Machinery (Ch 85)

Malaysia packages, assembles, and tests approximately 13% of global semiconductor output by volume, a position built over 50 years of manufacturing investment by U.S. and European chip companies. Intel’s Penang facilities package advanced processors; Infineon’s Kulim facility fabricates power semiconductors; Texas Instruments’ Kuala Lumpur plant packages analog ICs. IEEPA at 10-24% and Section 232 semiconductor at 25%+ would create combined tariff rates that could trigger major supply chain restructuring decisions by U.S. chip companies. However, there is no short-term alternative for Malaysia’s semiconductor back-end capacity, the infrastructure, workforce, and supply ecosystem built over decades cannot be replicated quickly elsewhere. Our Section 232 tariffs guide covers the investigation framework and exclusion process.

Palm Oil and Oleochemicals (Ch 15)

Malaysia is the world’s second-largest palm oil producer after Indonesia. Crude and refined palm oil enters the U.S. at 0% MFN; IEEPA adds 10%. Oleochemicals (fatty acids, fatty alcohols, glycerol) face MFN rates of 0-6.5% plus IEEPA. For U.S. food manufacturers, personal care product companies, and biofuel producers sourcing Malaysia-origin palm oil, IEEPA at 10% is the primary new cost, manageable relative to the overall commodity price.

Rubber Products, Medical Gloves (Ch 40)

Malaysia produces approximately 65% of the world’s natural rubber gloves, used in medical, dental, food processing, and industrial applications. Malaysia-origin medical gloves (HTS 4015.12) carry 0% MFN plus IEEPA baseline at 10%. Post-COVID supply chain focus on glove sourcing diversification has led some buyers to consider alternatives, but Malaysian glove manufacturers, Top Glove, Kossan, Hartalega, maintain dominant cost and scale advantages. Our trade advisory services team advises on glove tariff management programs.

Optical Instruments and Medical Devices (Ch 90)

Malaysia has developed a meaningful medical device manufacturing sector, exporting surgical instruments, medical disposables, and precision optical components. Medical devices typically enter at 0% MFN; IEEPA at 10% applies unless a medical device-specific exemption is issued. For high-value medical equipment (endoscopes, imaging components), even a 10% IEEPA levy represents a meaningful cost increase for U.S. hospital and clinic buyers.

Section 232 Semiconductor Risk: Malaysia’s Exposure

No country faces higher proportional tariff risk from a semiconductor Section 232 proclamation than Malaysia. Understanding the investigation scope and preparing for its potential impact is critical for any importer of Malaysia-origin electronic components.

Malaysia’s Role in Semiconductor Packaging and Assembly

Semiconductor packaging and assembly transforms bare silicon wafers (fabricated in Taiwan, South Korea, or elsewhere) into finished packaged chips ready for integration into circuit boards. Malaysia’s role is in this back-end step, not in chip design or front-end fabrication. The question for country-of-origin purposes is whether packaging transforms the wafer sufficiently to constitute “substantial transformation” from the origin of the bare die (Taiwan/Korea) to Malaysia. CBP has historically treated packaging as a substantial transformation, making the packaged chip “Malaysia origin” even if the die was fabricated elsewhere. A Section 232 tariff on Malaysia-packaged semiconductors would therefore apply even to Intel and TI products whose core die is U.S.-designed and fabricated in advanced nodes overseas.

How a Semiconductor Tariff Would Apply to Malaysia-Origin Chips

If Section 232 semiconductors are enacted at 25%: Malaysia-packaged ICs (HTS 8542.31) = 0% MFN + 24% IEEPA (post-pause) + 25% Section 232 = 49% effective rate. The BIS Section 232 page tracks investigation status. Section 232 exclusion petitions will be the primary relief mechanism, filed on the basis that the specific product is not domestically available at comparable quality, cost, or volume. Our trade advisory services team prepares Section 232 exclusion petitions.

How Importers Calculate Landed Cost on Malaysia-Origin Goods

Malaysia landed cost modeling requires running three scenarios: current IEEPA pause (10%), post-pause IEEPA (24%), and post-pause IEEPA + Section 232 semiconductor (49% for chips). For all non-semiconductor categories, the analysis is simpler: MFN + IEEPA.

Worked Example

Annual procurement of $30M in Malaysia-origin packaged microcontrollers (HTS 8542.31, 0% MFN): IEEPA pause (10%) = $3M duty. Post-pause IEEPA (24%) = $7.2M. Post-pause IEEPA + Section 232 (49%) = $14.7M. The $11.7M variance between current pause rate and maximum exposure represents a fundamental input cost risk for any electronics manufacturer relying on Malaysian chip packaging supply. Our tariff consulting firm provides Malaysia-specific semiconductor tariff scenario planning.

Common Landed-Cost Pitfalls

  • Assuming Malaysia-packaged chips are exempt from semiconductor Section 232 because the die was fabricated in Taiwan, country of packaging determines Malaysia origin for CBP purposes.
  • Planning semiconductor procurement budgets at 10% IEEPA without contingency for 24% + Section 232.
  • Missing Section 232 aluminum (10%) on Malaysian aluminum foil and extrusions used in electronics packaging.
  • Overlooking IEEPA on palm oil and rubber categories that previously paid 0% total duty.

Mitigation Strategies for Importers Sourcing from Malaysia

Malaysia-origin tariff mitigation options are constrained by the lack of an FTA and the near-impossibility of immediately substituting Malaysian semiconductor packaging capacity. However, targeted strategies address the highest-exposure categories.

Section 232 Semiconductor Exclusion Petitions

If Section 232 semiconductors are enacted, U.S. importers of Malaysia-packaged chips must file product-specific exclusion petitions immediately upon proclamation. Exclusions are available for products not available from domestic sources in sufficient quantity or quality. For most Malaysia-packaged components (especially specialized power semiconductors and high-reliability ICs), no U.S. domestic equivalent exists at comparable cost and quality, making exclusion eligibility strong. Our trade advisory services team prepares Section 232 exclusion petitions for electronics importers.

First Sale for Export

For Malaysia-origin electronics transacting through trading companies or distributors, First Sale for Export reduces the customs value to the manufacturer’s factory price. For high-volume semiconductor procurement with significant distributor markups, First Sale can reduce the dutiable value by 10-20%, proportionally reducing all tariff layers applied as a percentage of value.

FTZ Admission for High-Value Semiconductor Procurement

Foreign Trade Zones defer IEEPA and Section 232 duty payments on Malaysia-origin semiconductors until withdrawal. For large semiconductor procurement programs, FTZ deferral represents significant cash flow optimization. Withdrawal timing can be managed around rate change signals, goods admitted under the IEEPA pause rate and withdrawn before Section 232 enactment avoid the Section 232 layer entirely at that withdrawal event.

Importers managing multi-origin supply chains can benchmark landed costs across our full country tariff series: European Union, Mexico, Brazil, Japan, Canada, India, and China.

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Frequently Asked Questions

What is the current U.S. tariff rate on Malaysia imports?

During the 90-day IEEPA pause: MFN base rate + 10%. Semiconductors (0% MFN) face 10% IEEPA during the pause. Malaysia’s announced Liberation Day rate of 24% applies if the pause expires. A pending Section 232 semiconductor investigation could add 25%+ on HTS 8541-8542 chips. Palm oil and rubber carry 0% MFN + 10% IEEPA. Check the Captain tariff tracker for current HTS-level rates and Section 232 investigation status.

Are Malaysia tariffs still in effect in 2026?

Yes. IEEPA (10% pause baseline) applies to all Malaysia-origin goods unless specifically exempted. The Section 232 semiconductor investigation is ongoing and could impose additional tariffs on HTS 8541-8542 products. There is no U.S.-Malaysia FTA providing preferential duty rates.

Which HTS chapters carry the highest U.S. tariff on Malaysia-origin goods?

During the current pause, the highest effective rates are on: steel (Ch 72-73), 25% Section 232 + 10% IEEPA = 35%; aluminum (Ch 76), 10% Section 232 + 10% IEEPA = 20%. Semiconductors (Ch 85) currently face 0% MFN + 10% IEEPA = 10%, but face the highest potential post-pause + Section 232 combined rate of 49%.

How does the tariff stack layer on a single entry?

MFN base rate + IEEPA (10% pause / 24% post-pause) + Section 232 (25% for steel; 10% for aluminum; 25%+ for semiconductors if enacted) = effective rate on customs value. Each layer applies additively to the same declared customs value. For semiconductors, maximum potential stack is 0% MFN + 24% IEEPA + 25% Section 232 = 49%.

Can I use an FTZ to defer U.S. tariffs on Malaysia imports?

Yes, and FTZs are particularly valuable for Malaysia-origin semiconductor procurement given the Section 232 investigation risk. Goods admitted to a Foreign Trade Zone pay duty at the rate in effect at the time of withdrawal. Admission under the current 10% IEEPA pause rate and withdrawal before any Section 232 proclamation avoids the Section 232 layer at that withdrawal event. Our tariff and customs duty consulting team models FTZ strategy for Malaysia importers.

Are Malaysia tariffs eligible for drawback or refund?

IEEPA and Section 232 duties on Malaysia-origin goods qualify for manufacturing drawback (99% under 19 USC 1313) when incorporated into exported finished products. U.S. electronics manufacturers importing Malaysia-packaged chips and exporting finished electronic systems globally can recover IEEPA costs on the exported production portion through manufacturing drawback programs. Our trade advisory services team structures drawback programs.

How often do U.S. tariff rates on Malaysia change?

IEEPA rates have changed multiple times since April 2025 and are subject to bilateral negotiation outcomes. The Section 232 semiconductor investigation could impose a new tariff layer on relatively short notice following a Presidential proclamation. The Captain tariff tracker provides real-time Malaysia-specific rate monitoring including Section 232 semiconductor investigation updates.

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U.S. Tariffs on Indonesia: Reciprocal Rate and GSP

U.S. tariffs on Indonesia imports in 2026 layer an IEEPA reciprocal rate on top of MFN base rates that are already meaningful for apparel and footwear, Indonesia’s largest export categories to the United States. Indonesia retains partial GSP eligibility for some product categories, but the overall tariff environment has increased significantly since April 2025. Importers sourcing textiles, footwear, rubber, electronics, furniture, and seafood from Indonesian suppliers face a stacked duty structure that requires active landed cost management.

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U.S.-Indonesia Trade Snapshot in 2026

Indonesia is Southeast Asia’s largest economy and a growing source of U.S. manufactured goods imports, driven by apparel, footwear, palm oil, rubber, furniture, and electronics manufacturing. Its tariff profile in 2026 reflects both a meaningful IEEPA announced rate (32%) and historically elevated MFN rates on its key export categories.

Indonesia as a U.S. Trading Partner

The U.S. imported approximately $28 billion in goods from Indonesia in 2024, approximately the 17th-largest import source. Indonesia has been a growing nearshoring destination for apparel manufacturers diversifying from China, and its rubber and palm oil sectors serve U.S. manufacturing supply chains. Our current U.S. tariff rates by country page compares Indonesia’s rate profile to other Southeast Asian exporters. The nearshoring and friendshoring strategy analysis covers Indonesia as an alternative to China and Vietnam sourcing in apparel and furniture.

Key Import Categories from Indonesia

  1. Apparel and clothing (HTS Chapters 61-62): knitwear, woven garments, activewear.
  2. Footwear (HTS Chapter 64): athletic shoes, casual footwear, leather shoes.
  3. Palm oil and oleochemicals (HTS Chapter 15): crude palm oil, refined palm oil, fatty acids.
  4. Rubber and rubber products (HTS Chapter 40): natural rubber, rubber gloves, seals.
  5. Consumer electronics (HTS Chapter 85): electrical components, cables, semiconductors.
  6. Furniture and wood products (HTS Chapter 94): rattan furniture, bedroom sets, office furniture.
  7. Seafood (HTS Chapter 3): shrimp, tuna, grouper, tilapia.

Current U.S. Tariff Stack on Indonesia Imports

Indonesia’s tariff profile involves IEEPA on top of meaningful MFN base rates in its primary export categories, partial GSP eligibility that provides some duty-free access for qualifying goods, and elevated effective rates for footwear and apparel.

Statutory Authorities in Play

IEEPA Liberation Day (Executive Order 14257, April 2025)

Announced a 32% reciprocal rate on Indonesian goods. Under the 90-day pause, reduced to 10% baseline. If the pause expires, 32% reinstates. Tracked via Federal Register.

Generalized System of Preferences (GSP)

Indonesia retains partial GSP eligibility under the Trade Act of 1974. Some Indonesian product categories qualify for 0% duty under GSP (Form A required). Others have been removed for IP or labor concerns. See USTR GSP and CBP GSP claim procedures for current eligibility lists.

MFN/NTR base rates

Apparel (Ch 61-62), 12-32% depending on fiber and construction. Footwear (Ch 64), 6-37.5%. Palm oil (Ch 15), 0-7.7%. Rubber (Ch 40), 0-5%. Electronics (Ch 85), 0-3.5%. Furniture (Ch 94), 0-7%. Shrimp, 0% MFN (but potential AD duties).

AD/CVD orders

Shrimp from Indonesia carries antidumping duties from the longstanding USITC shrimp investigation (rates vary by exporter from 0% to 15%+). Importers must verify the specific exporter’s current AD rate with the Commerce AD/CVD search.

How the Rates Layer on a Single Entry

An Indonesia-origin cotton knitwear garment (HTS 6109.10.00, MFN 16.5%) during the IEEPA pause:

  1. MFN base rate: 16.5%.
  2. GSP benefit: available if product qualifies (verify eligibility).
  3. IEEPA baseline (pause): +10%.
  4. Effective rate (MFN + IEEPA, no GSP): 26.5%.

Post-pause at 32% IEEPA: 16.5% + 32% = 48.5% on the same garment. For a GSP-qualifying version of the same product, GSP reduces MFN to 0%; IEEPA applicability to GSP goods must be verified. Our Captain tariff tracker monitors Indonesia-specific rate changes including GSP status updates.

Top Affected HTS Chapters and Sectors

Indonesia’s tariff exposure is heaviest in apparel and footwear, where MFN base rates are among the highest in the U.S. tariff schedule, combined with IEEPA. Palm oil and rubber carry lower MFN rates and face primarily IEEPA exposure.

Apparel and Clothing (Ch 61-62)

Indonesia is a top-ten global apparel exporter and has absorbed significant production capacity from China since 2018. Major brands including H&M, Nike, and Gap source Indonesian garments. Apparel faces MFN rates of 12-32% depending on fabric content, among the highest MFN rates in the entire U.S. tariff schedule. Combined with IEEPA (10-32%), effective rates on Indonesian apparel range from 22% (pause, low-rate items) to 64% (post-pause, high-rate items). This compares unfavorably to Bangladesh, where least-developed-country (LDC) status provides duty-free access to the U.S. for apparel.

Footwear (Ch 64)

Indonesian footwear, athletic shoes for Nike, Adidas, and Converse; casual leather shoes; safety boots, faces MFN rates of 6-37.5% depending on material, construction, and use category. Athletic shoes with rubber outsoles and textile uppers (HTS 6404.11) face a 20% MFN rate, one of the highest standard MFN rates on any manufactured product. IEEPA adds 10-32%. Post-pause effective rates on athletic footwear could reach 52%. Indonesia is a critical sourcing country for U.S. athletic footwear brands that have limited alternative manufacturing capacity.

Palm Oil and Oleochemicals (Ch 15)

Indonesia is the world’s largest palm oil producer. U.S. imports of crude palm oil (HTS 1511.10), used in food processing, personal care products, and biofuels, carry 0% MFN plus IEEPA at 10%. Refined palm oil and oleochemicals (fatty alcohols, fatty acids) carry MFN rates of 0-7.7%. IEEPA baseline at 10% is the primary tariff concern for palm oil importers during the current pause period.

Seafood (Ch 3)

Indonesian shrimp and tuna exports to the U.S. face antidumping duties (exporter-specific rates) plus IEEPA. Importers must verify the specific Indonesian shrimp exporter’s current antidumping rate in the Commerce AD/CVD search tool before purchasing, rates change in annual administrative reviews. Tuna (Ch 3, fresh/frozen) enters at 0% MFN; canned tuna (Ch 16) at higher MFN rates.

GSP Eligibility for Indonesia: Current Status

Indonesia’s GSP eligibility provides a partial offset to the IEEPA burden for qualifying products. Understanding which categories qualify, and how to document the claim, reduces effective duty rates for eligible import programs.

GSP-Eligible Product Categories

Indonesia retains GSP eligibility for a range of manufactured goods where USTR has not removed benefits. GSP-eligible Indonesian products include certain rubber articles, some plastic goods, some metal manufactures, and other industrial categories, check the current USTR published GSP eligible article list for Indonesia. Apparel and footwear are generally excluded from GSP eligibility globally (Congress specifically excluded these categories from GSP coverage).

How to Claim GSP

GSP claims require a Form A Certificate of Origin from Indonesian customs, showing Indonesia as the country of origin and the specific HTS subheading as GSP-eligible. Import entries claim GSP by entering Special Program Indicator “A” in the tariff classification. Our tariff and customs duty consulting team verifies current GSP eligibility for specific Indonesia-origin HTS codes and prepares claim documentation.

How Importers Calculate Landed Cost on Indonesia-Origin Goods

Indonesia landed cost modeling requires checking: (1) IEEPA pause vs. post-pause rate, (2) GSP eligibility by specific HTS code, (3) AD/CVD order applicability for seafood, and (4) MFN base rate for the product category. The interaction of these four variables creates significant complexity for mixed Indonesia-origin procurement programs.

Worked Example

Annual $20M procurement of Indonesia-origin athletic shoes (HTS 6404.11, MFN 20%): IEEPA pause (10%) = 30% effective = $6M duty. IEEPA post-pause (32%) = 52% effective = $10.4M duty. Delta: $4.4M annually, a significant variance that requires scenario planning in gross margin models. Our Captain tariff tracker and tariff consulting firm team provide Indonesia-specific landed cost modeling.

Common Landed-Cost Pitfalls

  • Applying GSP 0% rate to apparel and footwear, these categories are universally excluded from GSP coverage.
  • Using outdated MFN rates on footwear, rates vary significantly by material and construction (6%-37.5%).
  • Failing to verify specific exporter AD rates for shrimp before purchasing.
  • Not modeling the 32% post-pause IEEPA rate on high-MFN-base categories where the combined effective rate would exceed 50%.

Mitigation Strategies for Importers Sourcing from Indonesia

Indonesia-origin importers have limited structural mitigation tools but several targeted strategies reduce effective duty exposure.

GSP Optimization for Eligible Categories

For Indonesian goods that retain GSP eligibility, active GSP claims reduce MFN base rates to 0%. This is most impactful for rubber articles, plastic goods, and other industrial categories where MFN rates of 3-9% combine with IEEPA to create 13-19% effective rates. GSP reduces the effective rate to IEEPA-only for qualifying categories.

Nearshoring Alternative Evaluation

Indonesia’s 32% post-pause IEEPA rate is lower than Vietnam’s 46%, making Indonesia marginally preferable on IEEPA grounds for categories sourced in both countries. For apparel, Bangladesh (LDC duty-free access) provides a compelling alternative for price-sensitive mass-market garments. The nearshoring and friendshoring strategy framework guides systematic origin evaluation for Indonesia-sourcing importers.

FTZ Admission and Duty Deferral

Foreign Trade Zones defer IEEPA duty payments on Indonesia-origin apparel, footwear, and electronics. For high-volume apparel importers facing potential 32% IEEPA reinstatement, FTZ admission buffers against rate changes on in-transit inventory. Our trade advisory services team evaluates FTZ cost-benefit for Indonesia import programs.

Importers managing multi-origin supply chains can benchmark landed costs across our full country tariff series: Thailand, Malaysia, European Union, Mexico, Taiwan, Brazil, Japan, South Korea, Canada, and India.

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Frequently Asked Questions

What is the current U.S. tariff rate on Indonesia imports?

During the 90-day IEEPA pause: MFN base rate + 10%. Indonesia’s announced Liberation Day rate of 32% reinstates if the pause expires. Apparel (16-32% MFN + 10% IEEPA = 26-42% during pause); footwear (20% MFN + 10% IEEPA = 30% during pause). GSP-eligible products face 0% MFN + IEEPA. Shrimp faces AD duties plus IEEPA. Check the Captain tariff tracker for current HTS-level rates.

Are Indonesia tariffs still in effect in 2026?

Yes. IEEPA (10% pause baseline) applies to all Indonesia-origin goods. AD/CVD orders on shrimp remain active. The 32% announced rate reinstates if the pause expires. GSP partial eligibility provides 0% MFN access for qualifying categories. There is no U.S.-Indonesia FTA currently in force.

Which HTS chapters carry the highest U.S. tariff on Indonesia-origin goods?

Highest effective rates: footwear (Ch 64), 6-37.5% MFN + 10-32% IEEPA; apparel (Ch 61-62), 12-32% MFN + 10-32% IEEPA; shrimp (Ch 3), AD duties + IEEPA. Palm oil and electronics face more moderate effective rates.

How does the tariff stack layer on a single entry?

MFN base rate + IEEPA (10% pause / 32% post-pause) + AD/CVD (if applicable) = effective rate on customs value. GSP reduces MFN to 0% for eligible categories. Each layer is additive, applied to the same declared customs value. AD deposits are assessed separately from duty deposits in CBP entry filing.

Can I use an FTZ to defer U.S. tariffs on Indonesia imports?

Yes. Foreign Trade Zones defer IEEPA duty payments on Indonesia-origin goods. For high-volume apparel importers, FTZ admission provides deferral on large duty deposits and operational flexibility around IEEPA rate change scenarios. AD deposits on shrimp are generally also deferrable through FTZ admission.

Are Indonesia tariffs eligible for drawback or refund?

IEEPA and MFN duties paid on Indonesian goods qualify for manufacturing drawback (99% under 19 USC 1313) when incorporated into exported finished products. AD duties on shrimp are also drawback-eligible. Our trade advisory services team evaluates drawback eligibility for Indonesia-origin import programs.

How often do U.S. tariff rates on Indonesia change?

IEEPA rates have changed multiple times since April 2025 and are subject to bilateral negotiation. AD administrative reviews update shrimp rates annually. GSP eligibility changes with USTR reviews. The Captain tariff tracker monitors Indonesia-specific rate changes and provides alerts.

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De Minimis Rule: How the $800 Import Threshold Works (2026 Updates)

The de minimis rule is one of the most commercially significant provisions in U.S. customs law — and one of the most misunderstood after a wave of 2025-2026 executive actions reshaped its scope. Under the current framework, understanding exactly which shipments still qualify, which do not, and what compliance obligations apply to Type 86 entries is essential for e-commerce operators, third-party logistics providers, and any importer relying on low-value parcel flows.

What Is the De Minimis Rule?

The de minimis rule is a customs provision that exempts low-value imports from formal entry, payment of duties and taxes, and most Partner Government Agency (PGA) data requirements. In the United States, the threshold is $800 per person per day, established by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), which raised the limit from $200. The statutory basis is 19 U.S.C. §1321, the administrative exemption provision of U.S. customs law, implemented through 19 CFR Part 10.

The practical effect is that a shipment valued at $799 or less addressed to a single recipient on a single day can enter the United States without a formal customs entry, without payment of tariff duties, and without a customs broker. This made the de minimis provision the operational backbone of cross-border e-commerce, enabling direct-to-consumer shipments from overseas manufacturers to U.S. buyers at low or zero tariff cost.

Statutory Definition: 19 U.S.C. §1321

Section 1321 authorizes the Secretary of the Treasury to prescribe rules for the entry of articles free of duty and tax when the aggregate fair retail value of articles imported by one person on one day does not exceed the threshold. “One person, one day” is the key limiting principle: each recipient may receive one qualifying shipment per day. The statute also allows CBP to restrict the exemption for articles whose importation is otherwise prohibited or restricted by law.

Section 321 Informal Entry vs Type 86 Entry

Two distinct filing mechanisms exist for de minimis shipments:

  • Section 321 release (also called “informal entry” or “Release” in ACE): the carrier files a simple manifest entry. No duty is assessed. Minimal data is required. This is the traditional mechanism used by the USPS, express carriers, and couriers for qualifying low-value parcels.
  • Entry Type 86: introduced by CBP in 2019 through the ACE Cargo Release system. Type 86 allows Section 321 de minimis shipments to be entered into ACE with PGA data (FDA, USDA, CPSC flags) attached. It enables electronic PGA holds and release decisions without converting the shipment to a formal entry. Type 86 is now required for many categories of goods with PGA oversight, even at values below $800.

2026 Changes to De Minimis: Executive Action

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The Trump administration’s 2025-2026 executive actions fundamentally altered the de minimis landscape, most significantly for Chinese-origin merchandise. These changes represent the most significant restriction on the de minimis exemption since TFTEA raised the threshold in 2015. For importers relying on de minimis flows from China, the tariff impact is equivalent to a formal entry tariff stack. Our Section 301 tariffs on China guide covers the underlying duty landscape that now applies to these goods.

China-Origin De Minimis Suspension

Executive orders issued in February 2025 suspended the de minimis exemption for goods originating in China and Hong Kong. Effective May 2, 2025, all postal shipments from China valued under $800 that previously cleared as Section 321 releases became subject to full formal entry, duty assessment (including the applicable IEEPA/Section 301 tariff stack), and PGA data submission. For non-postal express carrier shipments (DHL, FedEx, UPS), CBP implemented a flat-fee alternative: $25 per parcel (rising to $50 on June 1, 2025) in lieu of formal entry ad valorem duties, subject to change by proclamation.

The practical effect was immediate and significant: platforms that had relied on direct-from-China parcel flows at zero duty cost suddenly faced tariff exposure that, combined with the IEEPA 145% rate and applicable Section 301 duties, made the de minimis-based business model economically unsustainable for most product categories. Understanding the full current tariff rates by country is essential context for evaluating alternative sourcing strategies.

Treatment of Merchandise Still Eligible

De minimis remains available for shipments from all countries other than China and Hong Kong, subject to the one-person, one-day rule and the $800 threshold. Goods subject to Section 232 tariffs (steel, aluminum, copper, autos) are explicitly excluded from de minimis treatment regardless of origin — meaning a shipment of aluminum parts valued at $600 from Canada still owes Section 232 duties. Similarly, goods subject to active antidumping or countervailing duty orders are excluded from de minimis treatment by statute regardless of value or origin.

How De Minimis Works in Practice

For shipments that remain eligible, the operational mechanics are straightforward but require attention to the “one-day, one-importer” rule and PGA data requirements.

The One-Day, One-Importer Rule

The $800 threshold applies per person per day in aggregate across all de minimis entries. A single consumer receiving two separate $500 packages from two different senders on the same day has exceeded the threshold ($1,000 aggregate), and at least one package is subject to formal entry. CBP enforces this through manifest data matching recipient names and addresses. Carriers and freight forwarders are responsible for ensuring compliance; misclassification as de minimis when the aggregate threshold is exceeded constitutes a customs violation.

A tariff consulting firm can review your parcel manifest processes to identify threshold compliance gaps before CBP does.

PGA Data Requirements (FDA, USDA, CPSC)

CBP’s Type 86 entry type requires submission of PGA data for goods regulated by the Food and Drug Administration (FDA), U.S. Department of Agriculture (USDA), Consumer Product Safety Commission (CPSC), and other agencies. For example, a cosmetic valued at $400 imported under Type 86 must include FDA-required data (product category, manufacturer, country of origin) even though no duty is assessed. Failure to include required PGA data triggers a hold in ACE, preventing release.

ACE Submission Flow

Type 86 entries are filed by authorized filers through the ACE Cargo Release platform. The filing includes the HTS classification at the 6-digit level (not the full 10-digit required for formal entries), the declared value, origin country, recipient information, and any applicable PGA data elements. CBP’s automated targeting system reviews the filing and issues a release, hold, or examination order. Our customs clearance software integrates directly with ACE to automate Type 86 submissions and PGA data population for high-volume parcel flows.

What Changed for E-Commerce Sellers and 3PLs

The 2025-2026 de minimis restrictions disproportionately affected two business models: direct-from-China e-commerce operations and U.S.-based third-party logistics providers (3PLs) managing cross-border fulfillment for overseas sellers.

Drop-Ship and Fulfillment Models

Drop-ship operations that relied on Chinese manufacturers shipping directly to U.S. consumers under de minimis now face a binary choice: absorb the tariff cost (often 150%+ effective rate on Chinese goods), shift inventory to a U.S. warehouse (converting to domestic fulfillment with tariff paid on the warehouse replenishment shipment), or source from a non-Chinese origin that retains de minimis eligibility. Many 3PLs have seen significant volume shifts to bonded warehouse and fulfillment-by-warehouse models as a result.

Express Carrier Integrations

DHL, FedEx, and UPS updated their cross-border systems to handle the new China de minimis restrictions, including the flat-fee duty collection mechanism for postal-equivalent shipments and the ACE Type 86 filing requirements for express shipments. Carriers now require origin country declarations at the time of pickup for all shipments potentially subject to the China de minimis suspension, adding documentation overhead to shipper workflows.

Compliance Risk and Enforcement

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CBP has significantly increased enforcement focus on de minimis abuse, including:

  • Shipment splitting: deliberately dividing a single commercial order into multiple sub-$800 shipments addressed to the same recipient to avoid duties. This is explicitly prohibited under 19 U.S.C. §1321 and constitutes customs fraud under 19 U.S.C. §1592.
  • Undervaluation: declaring a customs value below the actual transaction value to stay under the $800 threshold. CBP cross-references declared values against marketplace data and prior entries for the same goods.
  • Origin misrepresentation: declaring non-Chinese origin on goods that originate in China to avoid the China de minimis suspension. This is subject to penalty under 19 U.S.C. §1592 and, in egregious cases, criminal referral under 18 U.S.C. §542.
  • PGA circumvention: using de minimis to import FDA-regulated goods that would not pass review under a formal Type 86 or formal entry filing. CBP and FDA jointly target high-risk product categories including dietary supplements, cosmetics, and electronic devices.

For a review of your organization’s de minimis compliance posture, our customs brokerage services team conducts parcel program audits that identify threshold, valuation, and PGA data risks before they become enforcement actions.

How to Adapt Your Tariff Strategy in 2026

The de minimis changes require a deliberate strategic response for any business that relied on sub-$800 Chinese parcel flows. The key decisions are:

  • Origin shift: can the product be sourced from Vietnam, India, Mexico, or another country that retains de minimis eligibility? This requires a full tariff and landed cost analysis — our tariff calculation guide walks through the methodology.
  • Warehouse import model: import goods under a formal entry to a U.S. bonded warehouse or FTZ, pay the applicable tariff on entry, and fulfill domestically at zero additional tariff cost. This concentrates the tariff cost at the import point rather than at each parcel level.
  • First Sale valuation: if continuing to import from China under formal entry, First Sale valuation reduces the dutiable customs value to the factory price rather than the importer’s purchase price, reducing the absolute dollar amount of tariff owed across all applicable programs.
  • Exclusion monitoring: track USTR Annex III product-level exclusions from IEEPA rates, which reduce the tariff stack on specific HTS codes.

Our trade advisory services team builds de minimis transition plans that evaluate each of these options against your actual parcel volume, product mix, and customer delivery requirements. The Reciprocal Tariff Act framework provides additional context on how the tariff environment affecting these decisions is structured.

Frequently Asked Questions

What is the de minimis rule in U.S. customs?

The de minimis rule under 19 U.S.C. §1321 allows imports valued at $800 or less per person per day to enter the United States without a formal customs entry, without duty payment, and with reduced data requirements. The $800 threshold was established by TFTEA in 2015, raising it from the prior $200 limit.

Is the $800 de minimis threshold still in effect in 2026?

Yes, the $800 threshold remains in effect for shipments from most countries. However, significant restrictions were imposed in 2025: goods originating in China and Hong Kong are no longer eligible for the de minimis exemption, and goods subject to Section 232 tariffs or active AD/CVD orders are excluded regardless of origin or value.

Did Trump eliminate the de minimis exemption?

Not entirely. Executive orders in 2025 suspended de minimis eligibility specifically for Chinese and Hong Kong-origin goods, not for goods from all countries. The $800 threshold and Section 321 informal entry process remain available for qualifying goods from other origins. The suspension for China was the largest single change to de minimis since the threshold was raised in 2015.

What is the difference between Section 321 and Type 86 entries?

Section 321 release is a simple manifest-based clearance mechanism requiring minimal data, used for qualifying de minimis shipments. Entry Type 86, introduced in ACE in 2019, is a more structured de minimis entry that requires HTS classification and Partner Government Agency (PGA) data for regulated goods (FDA, USDA, CPSC). Type 86 enables CBP and PGA agencies to perform electronic targeting and release decisions on de minimis shipments without converting them to formal entries.

Does de minimis apply to Chinese e-commerce shipments?

No, as of May 2, 2025. Chinese-origin goods are no longer eligible for the de minimis exemption under the executive orders issued in February 2025. Postal shipments from China are subject to formal entry and full duty assessment. Express carrier shipments from China may be subject to a flat-fee alternative duty structure. Both mechanisms mean Chinese parcel shipments now carry tariff costs that were previously zero under de minimis.

What data do I need to submit for a Type 86 entry?

A Type 86 entry requires: importer of record EIN or CBP-assigned number, recipient name and address, declared value, country of origin, 6-digit HTS classification, and any applicable PGA data elements (FDA product category, USDA permits, CPSC regulated article designation). The entry is filed through ACE Cargo Release by an authorized filer.

Can importers use de minimis to split larger shipments?

No. Deliberately dividing a commercial order into multiple sub-$800 shipments to avoid duties is explicitly prohibited under 19 U.S.C. §1321 and constitutes customs fraud under 19 U.S.C. §1592. CBP cross-references recipient addresses, manifest data, and commercial patterns to identify shipment-splitting schemes, which are subject to penalties up to the domestic value of the merchandise.

Map Your 2026 De Minimis Exposure

De minimis is no longer a simple low-value clearance shortcut — it is a compliance-intensive program with origin-specific restrictions, PGA data obligations, and significant enforcement risk. Combining our customs clearance software with trade advisory expertise lets your team map exactly which parcel flows are still eligible, which now require formal entry, and what the tariff cost of each alternative sourcing scenario looks like.

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Liberation Day Tariffs: April 2 Reciprocal Framework Explained

On April 2, 2025, the United States announced one of the broadest tariff restructurings in modern trade history. Known as “Liberation Day,” the executive action established a baseline import tariff and country-specific reciprocal rates across dozens of trading partners. For U.S. importers, understanding the statutory mechanics, the three-annex structure, and how these levies stack with existing duties is not optional — it is a core business requirement.

What Is the Liberation Day Tariff?

The Liberation Day tariff framework was implemented through Executive Order 14257 and its subsequent amendments, issued by the President in April 2025. The legal authority rests on the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. §1701 et seq.) and the National Emergencies Act, which together allow the executive branch to regulate commerce in response to an unusual and extraordinary threat to national security, foreign policy, or the economy.

April 2, 2025 Announcement Context

The White House framed the action as a response to persistent trade deficits and what it characterized as unfair non-tariff barriers maintained by U.S. trading partners. The Office of the U.S. Trade Representative (USTR) published supporting fact sheets the same day, detailing the methodology used to derive each country’s rate. U.S. Customs and Border Protection (CBP) operationalized the measure through a new HTS subheading 9903.01 series, allowing customs entries to reflect the new rates immediately.

Statutory Authority: IEEPA and National Emergency

IEEPA grants the President broad authority to block or regulate transactions once a national emergency is declared. The April 2 executive order declared such an emergency based on chronic trade imbalances. Critics in the courts immediately challenged whether chronic trade deficits constitute the kind of emergency IEEPA was designed to address, but as of mid-2026 the levies remain operative subject to ongoing litigation.

The 10% Baseline Tariff (Annex I)

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Annex I of the executive order established a universal 10% baseline tariff on nearly all imports from all countries not otherwise specified. This rate took effect on April 5, 2025. It applies on top of the existing Most Favored Nation (MFN) rate, meaning an importer bringing in goods dutiable at 5% MFN would now face 15% in combined tariff exposure before any other program is applied. The Federal Register publication of Annex I lists the limited product-level carve-outs: certain pharmaceutical raw materials and strategic minerals that the U.S. does not produce domestically were excluded.

For importers using a tariff consulting firm, quantifying the Annex I impact on a product portfolio requires a full HTS reclassification review to identify where the 10% stacks and where exclusions may apply.

Country-Specific Reciprocal Rates (Annex II)

Annex II assigned higher country-specific rates to major deficit trading partners. The methodology published by USTR derived each country’s “reciprocal rate” from a formula intended to approximate the tariff and non-tariff measure gap between U.S. and partner rates.

How Country Rates Were Calculated

The USTR formula divided the bilateral trade deficit in goods by total imports from that country and halved the result to produce the “reciprocal” rate. This approach drew significant criticism from trade economists, who noted it does not accurately measure actual tariff barriers, but the formula was applied uniformly across the Annex II country list.

Major Trading Partners and Their Initial Rates

China received a 34% reciprocal rate under Annex II (later escalating to 145% when China retaliated and the U.S. imposed additional IEEPA tranches). The European Union was assigned a 20% rate, Vietnam 46%, Japan 24%, India 26%, and South Korea 25%. Most of the Annex II rates were subsequently paused for 90 days beginning April 9, 2025, with the 10% Annex I baseline remaining in force during the pause. As of 2026, individual country negotiations are ongoing, and rates for specific partners have been modified by bilateral deal memos and separate executive orders.

Exempt Goods and Carve-Outs (Annex III)

Annex III lists product-level exemptions from both the baseline and country-specific rates. Key excluded categories include: semiconductors and semiconductor manufacturing equipment, certain pharmaceutical active ingredients, copper ore (a carve-out later reversed for copper finished products under a Section 232 action), and a limited range of energy commodities. The Annex III list was published in the Federal Register and has been amended multiple times. Importers should consult the current CFR or the CBP automated broker interface for the live exclusion list rather than relying on a snapshot.

Reviewing Annex III applicability is one of the first steps in any tariff review. Our Captain tariff tracker surfaces the current Annex III status for any HTS heading, updated as the Federal Register publishes amendments.

How Liberation Day Tariffs Stack With Section 232, 301, and AD/CVD

The stacking of multiple tariff programs on a single entry is one of the most consequential compliance issues for U.S. importers in 2026. Liberation Day tariffs are additive, not alternative.

A steel import from China, for example, may carry: a 25% Section 232 tariff on steel articles under Chapter 72-73, a 25% Section 301 tariff on Chinese goods under List 3, a Liberation Day 145% IEEPA rate (post-escalation), and any applicable antidumping (AD) or countervailing duty (CVD) rate from a specific USITC order. The combined effective rate for some steel products from China exceeds 200%. Understanding Section 301 tariffs on China in the context of Liberation Day stacking is essential before sourcing decisions are made.

For goods from countries with a paused Annex II rate (not China), the stack typically comprises MFN + 10% Annex I + any applicable Section 232 or 301 rate. The Liberation Day framework did not create an exclusion from Section 232 or Section 301 for any country.

Current Status in 2026: Pauses, Negotiations, and Court Challenges

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The Liberation Day framework as implemented in April 2025 has gone through significant evolution:

  • 90-day pause (April 9, 2025): Most Annex II country-specific rates were paused at 10% while bilateral negotiations proceeded. China was excluded from the pause.
  • China escalation: Following Chinese retaliatory tariffs, the U.S. IEEPA rate on Chinese goods was raised in tranches to 145% by May 2025.
  • Court challenges: Multiple cases in the Court of International Trade and the Federal Circuit argued IEEPA does not authorize tariffs on trade deficits. As of mid-2026, injunctions have been granted and stayed in rapid succession; importers should monitor CBP bulletins daily.
  • Bilateral deals: The United Kingdom, India, and Japan have each entered preliminary deal frameworks that modify their respective Annex II rates in exchange for increased U.S. export access.

The current U.S. tariff rates by country table provides a live view of effective rates as negotiations evolve.

How Importers Respond

No single response fits every supply chain, but the most effective approaches combine immediate cost modeling with longer-term sourcing evaluation.

Modeling Landed Cost Under Multiple Stacks

Landed cost modeling must account for every applicable tariff tranche, not just the most visible one. Our trade advisory services team builds product-level tariff exposure maps that account for MFN, Section 232, Section 301, IEEPA Annex I/II, and any applicable AD/CVD rate simultaneously. The output is a per-unit cost impact that informs contract renegotiation and sourcing decisions.

Sourcing Shifts and First Sale Strategies

For companies diversifying away from China, the Liberation Day framework complicates the calculus because every alternative sourcing country carries an Annex I 10% baseline even if its Annex II rate is paused. Vietnam’s rate (46%) remains elevated relative to Southeast Asian peers such as Cambodia. First Sale valuation strategies, which use the manufacturer’s sale price rather than the importer’s price as the customs value base, can reduce the dutiable value on which all tariff stacks are calculated. See our guide on IEEPA tariff refunds for recovery mechanisms when overpayment occurs.

FTZ and Bonded Warehouse Timing

Foreign trade zones and bonded warehouses allow importers to defer tariff payment until goods are formally entered into U.S. commerce, or to re-export without paying duties entirely. For importers waiting on exclusion rulings or court decisions, this deferral can represent significant cash flow benefit. The Tariff Response Unit at Tariff Response Unit specializes in FTZ feasibility assessments under the current tariff environment.

Frequently Asked Questions

What is the Liberation Day tariff?

Liberation Day refers to the executive action taken on April 2, 2025, which established a universal 10% baseline import tariff (Annex I) and country-specific reciprocal rates (Annex II) on most U.S. imports. The authority derives from IEEPA and the National Emergencies Act, operationalized through Executive Order 14257 and associated HTS subheading 9903.01.

When did Liberation Day tariffs take effect?

The 10% Annex I baseline took effect on April 5, 2025. The country-specific Annex II rates were scheduled for April 9, 2025, but were paused the same day for most countries except China, which continued to face escalating IEEPA rates.

What is the 10% baseline tariff rate?

The 10% baseline applies to virtually all goods imported into the United States from any country not subject to a higher country-specific Annex II rate. It stacks on top of existing MFN duty rates, Section 232, Section 301, and any applicable AD/CVD. It is collected at the time of customs entry under HTS 9903.01.

Which countries have higher reciprocal tariff rates?

Under the original Annex II, China was assigned 34% (later raised to 145%), Vietnam 46%, India 26%, EU 20%, and Japan 24%. Most rates other than China’s were paused at 10% pending negotiations. The Annex II schedule has been modified multiple times; check the Federal Register or CBP for current rates.

What is exempt from the Liberation Day tariffs?

Annex III lists product-level exemptions including certain pharmaceutical active ingredients, semiconductor manufacturing equipment, and specific energy commodities. The exclusion list is maintained in the Federal Register and the CBP automated broker interface. Consult the live list rather than any static snapshot.

Are Liberation Day tariffs still in effect in 2026?

Yes. The 10% Annex I baseline remains in effect for most countries. The 145% rate on Chinese goods is operational subject to ongoing court challenges. Annex II rates for most other countries are in various stages of bilateral negotiation.

How do Liberation Day tariffs stack with Section 301 China duties?

They stack additively. A product from China subject to 25% Section 301 duties now also carries the IEEPA rate (145% as of mid-2026). A product dutiable at $10.00 under MFN faces Section 301 and IEEPA on top, making the combined tariff content of many Chinese goods economically prohibitive.

Next Steps for Importers

The Liberation Day framework rewrote tariff strategy for every U.S. importer. Waiting for courts to resolve the IEEPA challenge is not a viable strategy when entries continue to accumulate tariff liability daily. Combining our Captain tariff tracker with trade advisory expertise allows your team to model Annex I, II, and III exposure across every HTS code in your import profile before your next entry.

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U.S. Tariffs on South Korea: KORUS FTA and Section 232 Stack

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U.S.-South Korea Trade Snapshot in 2026

The U.S.-Korea Free Trade Agreement (KORUS), in effect since 2012, is the largest bilateral U.S. FTA by trade volume after USMCA. KORUS eliminated duties on most goods traded between the two countries, but Section 232 and IEEPA have imposed new tariff layers on specific sectors that KORUS alone does not protect.

South Korea as a U.S. Trading Partner

The U.S. imported approximately $130 billion in goods from South Korea in 2024, making it the sixth-largest import source. Korean export strengths align precisely with the sectors facing the most tariff scrutiny: passenger vehicles (Hyundai, Kia), semiconductors (Samsung, SK Hynix), consumer electronics (Samsung, LG), and steel (POSCO). The KORUS FTA provides a strong tariff foundation but does not override Section 232 authority. Our current U.S. tariff rates by country page covers Korea’s comparative tariff profile.

Key Import Categories from South Korea

  1. Passenger vehicles (HTS Chapter 87.03): Hyundai, Kia Korea-assembled models.
  2. Semiconductors and memory chips (HTS Chapter 85): Samsung DRAM, SK Hynix NAND.
  3. Consumer electronics (HTS Chapter 85): Samsung OLED TVs, LG appliances, LG OLED panels.
  4. Steel and flat-rolled products (HTS Chapter 72-73): POSCO hot-rolled coil, galvanized sheet.
  5. Industrial machinery and equipment (HTS Chapter 84): process equipment, precision components.
  6. Ships and marine equipment (HTS Chapter 89): LNG tankers, containerships.

Current U.S. Tariff Stack on South Korea Imports

South Korea’s tariff profile is uniquely bifurcated: KORUS-qualifying goods at 0%, non-KORUS goods at IEEPA rates, and sector-specific Section 232 tariffs that apply regardless of KORUS status.

Statutory Authorities in Play

KORUS FTA (Korea-U.S. Free Trade Agreement)

Provides 0% duty on most goods meeting KORUS rules of origin. See USTR KORUS for agreement text and tariff schedules. Notable exception: passenger vehicles (HTS 8703) carry a 2.5% KORUS rate (not 0%), reduced from the 2.5% MFN rate through minimal modification. KORUS was renegotiated in 2018 to extend the auto tariff phase-down.

IEEPA Liberation Day (Executive Order 14257, April 2025)

Announced a 25% reciprocal rate on Korean goods. Under the 90-day pause, reduced to 10% baseline. KORUS-qualifying goods may be carved out from IEEPA, but importers must verify current IEEPA/KORUS interaction status with CBP. The Federal Register tracks executive order details.

Section 232 steel (Trade Expansion Act §232)

  • Within-quota: 0% (KORUS steel exemption applies).
  • Over-quota: 25%. Korea’s TRQ is set at approximately 70% of historical average annual imports. Quarterly monitoring of CBP TRQ fill rates is essential for POSCO and other Korean steel importers.

Section 232 aluminum

  • Within-quota: 0% (TRQ applies).
  • Over-quota: 10%.

Section 232 autos

25% on Korean-assembled passenger vehicles and auto parts not qualifying for KORUS exemption. Note: KORUS does not exempt autos from Section 232, Korea-assembled vehicles face Section 232 regardless of KORUS ROO compliance. The 2.5% KORUS auto rate + 25% Section 232 = 27.5% effective rate on Korea-assembled vehicles before IEEPA.

How the Rates Layer on a Single Entry

A Korea-assembled Hyundai Tucson (HTS 8703.40) during the IEEPA pause:

  1. KORUS auto rate: 2.5%.
  2. Section 232 auto: +25%.
  3. IEEPA baseline (pause): +10%.
  4. Effective rate (pause): 37.5%.

The same Tucson assembled in Hyundai’s Alabama plant: U.S. origin = 0%. Korean-brand vehicles assembled in the U.S. avoid the full tariff stack. Hyundai’s Montgomery, Alabama and Metaplant Georgia facilities now produce Tucson, Santa Fe, Ioniq, and Genesis models, specifically to avoid Section 232 and IEEPA exposure on the U.S. market. Our Section 232 tariffs guide covers automotive Section 232 in detail.

Top Affected HTS Chapters and Sectors

South Korea’s tariff exposure concentrates in vehicles (Section 232 + IEEPA), steel (TRQ mechanics), and to a lesser extent semiconductors (IEEPA on high-value shipments).

Passenger Vehicles and Auto Parts (Ch 87)

Hyundai and Kia together export approximately $20 billion in Korean-assembled vehicles to the U.S. annually. Section 232 at 25% applies to all Korea-assembled vehicles regardless of KORUS status. IEEPA adds 10-25% depending on pause status. The effective rate on Korea-assembled passenger vehicles during the pause (37.5%) has accelerated Hyundai and Kia’s U.S. assembly expansion, reducing but not eliminating Korean import volumes. Our Captain tariff tracker monitors Section 232 auto rates in real time.

Semiconductors and Memory (Ch 85)

Samsung Electronics and SK Hynix supply approximately 70% of global DRAM memory and significant NAND flash memory to the U.S. market. Semiconductors enter at 0% MFN under KORUS; IEEPA adds 10% (pause) or 25% (post-pause). A potential Section 232 semiconductor tariff (25%+), similar to the investigation covering Taiwan-origin chips, would affect Korean semiconductor exports significantly. Samsung’s Austin, Texas fab (fabrication of chips in the U.S.) provides partial U.S.-origin supply as a natural hedge against Korean-origin tariffs.

Steel and Flat-Rolled Products (Ch 72-73)

POSCO is Korea’s dominant steel producer and a major U.S. flat-rolled steel supplier. Within-TRQ Korean steel enters at 0% under KORUS steel exception; over-quota steel faces 25% Section 232. The TRQ cap at ~70% of historical volumes means heavy-use quarters can exhaust the TRQ before quarter end, creating mid-quarter rate jumps for subsequent Korean steel imports. Our steel and aluminum tariffs analysis covers TRQ mechanics in detail.

Consumer Electronics (Ch 85)

Samsung OLED TVs, LG OLED panels, and LG appliances, produced in Korea, enter at 0% MFN under KORUS for most electronics HTS subheadings. IEEPA applies: 10% during pause, 25% post-pause. For large-screen OLED TVs valued at $1,500-$5,000 per unit, IEEPA at 10-25% represents a $150-$1,250 duty per unit that retailers must absorb or pass through.

KORUS FTA: What Qualifies and What Doesn’t

KORUS is the largest U.S. bilateral FTA after USMCA, but it has important exceptions that importers must understand to correctly calculate duty exposure.

KORUS Rules of Origin

KORUS ROO for most industrial goods requires tariff classification change from covered HTS headings plus a regional value content test. Electronics and machinery typically require substantial transformation in Korea or from Korean-origin inputs. Unlike USMCA, KORUS does not have a high RVC threshold for most manufactured goods, making qualification more accessible for Korea-assembled goods with Korean components. However, goods with high Chinese or Japanese input content may fail KORUS ROO and revert to MFN/IEEPA rates.

Products Still Subject to Tariffs Under KORUS

Section 232 tariffs apply regardless of KORUS status, KORUS does not override Section 232 authority. Passenger vehicles carry 2.5% under KORUS (not 0%). Some agricultural products retain MFN rates. And IEEPA interaction with KORUS preferences is subject to ongoing USTR and CBP clarification, importers should verify current KORUS/IEEPA carve-out status with our trade advisory services team.

How Importers Calculate Landed Cost on South Korea-Origin Goods

KORUS provides a strong foundation for most industrial goods at 0%, but the Section 232 layer on vehicles and the IEEPA layer on all goods require scenario modeling beyond the KORUS base rate.

Worked Example

Annual procurement of $50M in Korea-origin DRAM memory (HTS 8542.32, 0% MFN, KORUS 0%): IEEPA pause (10%) = $5M duty. IEEPA post-pause (25%) = $12.5M duty. Delta = $7.5M annually on a single memory procurement program. Our Captain tariff tracker and tariff consulting firm provide Korea-specific IEEPA and Section 232 scenario planning.

Common Landed-Cost Pitfalls

  • Assuming KORUS eliminates Section 232 auto exposure, KORUS does NOT exempt Korean vehicles from Section 232.
  • Claiming KORUS 0% without verifying ROO compliance when goods contain high Asian-origin component content.
  • Missing the TRQ fill timing for Korean steel, exhausted TRQs can shift effective rates from 0% to 25% mid-quarter.
  • Overlooking IEEPA on KORUS-qualifying electronics, KORUS provides MFN rate reduction, but IEEPA is a separate authority that may still apply.

Mitigation Strategies for Importers Sourcing from South Korea

South Korea’s tariff position offers KORUS as the primary mitigation tool for most industrial goods, with Section 232 exclusion and FTZ deferral as secondary strategies for automotive and steel.

KORUS Origin Qualification

Ensuring KORUS ROO compliance for Korea-origin goods is the primary strategy for most importers, reducing applicable tariffs from IEEPA rates to 0% (or 2.5% for autos). Working with Korean suppliers to document ROO compliance, including tariff classification change analysis and RVC calculations, protects KORUS claims from CBP post-entry audits.

Section 232 Steel TRQ Management

For Korean steel importers, TRQ monitoring and shipment timing within quarterly quota windows is the highest-value operational strategy. Our tariff and customs duty consulting team monitors Korean TRQ fill rates and advises on shipment entry timing to secure within-TRQ rates. See the steel and aluminum tariffs guide for TRQ mechanics.

FTZ Options for Electronics and Semiconductor Procurement

Foreign Trade Zones defer IEEPA duty payments on Korea-origin semiconductors and electronics. For high-volume Samsung or SK Hynix procurement programs, FTZ admission defers multi-million-dollar IEEPA deposits. Withdrawal timing can be managed around IEEPA rate change signals, providing operational flexibility unavailable to standard entry importers.

Importers managing multi-origin supply chains can benchmark landed costs across our full country tariff series: Thailand, Malaysia, European Union, Mexico, Brazil, Indonesia, Japan, Vietnam, Canada, India, and China.

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Frequently Asked Questions

What is the current U.S. tariff rate on South Korea imports?

KORUS-qualifying goods: 0% (most industrial goods) or 2.5% (passenger vehicles). Section 232 adds 25% on Korean-assembled vehicles regardless of KORUS status. Korean steel within TRQ: 0% + IEEPA = 10% (pause); over-quota: 25% Section 232. IEEPA (10% pause / 25% post-pause) applies to non-KORUS-exempt goods. Check the Captain tariff tracker for HTS-level rates and KORUS interaction status.

Are South Korea tariffs still in effect in 2026?

Yes. KORUS provides 0% access for qualifying goods, but Section 232 auto tariffs (25%) and steel TRQ (25% over-quota) remain active. IEEPA (10% pause / 25% announced rate) applies to non-KORUS goods or where KORUS does not override IEEPA authority. The underlying KORUS framework is active and continues to provide preferential access for qualifying goods.

Which HTS chapters carry the highest U.S. tariff on South Korea-origin goods?

Highest effective rates: Korean-assembled passenger vehicles (Ch 87), 2.5% KORUS + 25% Section 232 + 10-25% IEEPA = 37.5-52.5%; steel over TRQ (Ch 72-73), 25% Section 232 + IEEPA. Semiconductors (Ch 85) and consumer electronics face 0% KORUS rate + IEEPA (10-25%), making them more favorable categories.

How does the tariff stack layer on a single entry?

KORUS rate (0% or 2.5%) + IEEPA (10% pause / 25% post-pause) + Section 232 (25% autos; 25% steel over TRQ; 10% aluminum) = effective rate. For KORUS-qualifying non-auto goods: 0% + IEEPA = 10-25% effective. For vehicles: 2.5% + 25% Section 232 + 10% IEEPA = 37.5% during pause. Each layer applies additively to the same customs value.

Can I use an FTZ to defer U.S. tariffs on South Korea imports?

Yes. Foreign Trade Zones defer IEEPA and Section 232 duty payments on Korea-origin goods. For semiconductor and electronics importers, FTZ deferral is valuable given IEEPA rate volatility. KORUS-qualifying goods at 0% MFN gain no duty benefit from FTZ admission but may use FTZ for inventory management purposes.

Are South Korea tariffs eligible for drawback or refund?

IEEPA and Section 232 duties paid on Korean goods qualify for manufacturing drawback (99% under 19 USC 1313) when incorporated into exported finished products. U.S. electronics manufacturers importing Korean semiconductors and exporting finished electronics can structure manufacturing drawback programs on the exported portion of production. Our trade advisory services team structures drawback programs.

How often do U.S. tariff rates on South Korea change?

IEEPA rates change on executive-order timelines, multiple changes since April 2025. Section 232 TRQ fill rates change quarterly. KORUS-specific modifications require Congressional involvement and are rare. The Captain tariff tracker monitors Korea-specific rate changes and provides alerts.

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U.S. Tariffs on Thailand: Reciprocal and GSP Eligibility

U.S. tariffs on Thailand imports in 2026 combine one of the highest Liberation Day IEEPA rates announced for any country (36%) with partial GSP eligibility for some product categories and active tariff pressure on Thailand’s key export sectors, hard disk drives, rubber, passenger vehicles, and processed foods. Understanding the IEEPA pause mechanics, GSP claim procedures, and sector-specific rate structures is essential for any importer with Thailand-origin supply chains.

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U.S.-Thailand Trade Snapshot in 2026

Thailand has been a significant U.S. import source since the 1980s, initially in textiles and subsequently in electronics and automotive components. The country’s tariff exposure in 2026 is significant: its 36% Liberation Day rate is among the highest announced for any country outside China, driven by its large trade surplus with the United States.

Thailand as a U.S. Trading Partner

The U.S. imported approximately $58 billion in goods from Thailand in 2024, making it approximately the 13th-largest import source. Thailand’s export profile to the U.S. is diverse: hard disk drives from Seagate and Western Digital Thailand operations, passenger vehicles assembled for export, natural rubber, tires, processed seafood, and jewelry. Our current U.S. tariff rates by country page compares Thailand’s tariff profile to other Southeast Asian exporters. The nearshoring and friendshoring strategy analysis covers Thailand’s role as an alternative to China sourcing in specific categories.

Key Import Categories from Thailand

  1. Hard disk drives and data storage (HTS Chapter 84): Seagate, Western Digital HDD assembly.
  2. Passenger vehicles (HTS Chapter 87): Toyota, Honda, Isuzu Thailand-assembled models.
  3. Rubber and tires (HTS Chapter 40): natural rubber, auto tires, technical rubber articles.
  4. Processed foods and seafood (HTS Chapter 3, 16): canned tuna, shrimp, pineapple.
  5. Jewelry and gemstones (HTS Chapter 71): silver jewelry, colored stones, gold articles.
  6. Electrical machinery and components (HTS Chapter 85): transformers, switches, wire harnesses.

Current U.S. Tariff Stack on Thailand Imports

Thailand’s tariff profile is characterized by a high IEEPA announced rate, partial GSP eligibility for certain goods, and elevated MFN base rates on apparel and footwear that stack significantly with IEEPA.

Statutory Authorities in Play

IEEPA Liberation Day (Executive Order 14257, April 2025)

Announced a 36% reciprocal rate on Thai goods, one of the highest among Southeast Asian countries. Under the 90-day pause, reduced to 10% baseline. If the pause expires, 36% reinstates. The gap between pause (10%) and post-pause (36%) is 26 percentage points, one of the largest IEEPA rate swings for any major import source country. Tracked via Federal Register.

Generalized System of Preferences (GSP)

Thailand is partially eligible for GSP benefits under the Trade Act of 1974. Some Thai product categories retain GSP duty-free access (Form A Certificate of Origin required). Others have been removed from GSP eligibility in prior USTR reviews for IP and labor standard concerns. See USTR GSP for current eligible product list.

MFN/NTR base rates

Hard disk drives (HTS 8471.70), 0% MFN. Natural rubber (HTS 4001), 0% MFN. Passenger vehicles (HTS 8703), 2.5% MFN. Rubber tires, 2.5-4.5%. Canned tuna, 12.5%. Jewelry (HTS 71), 6.5-7% MFN.

Section 232 steel and aluminum

Thai steel and aluminum face 25% and 10% respectively, applicable to relevant categories.

How the Rates Layer on a Single Entry

A Thailand-assembled Toyota Hilux pickup truck (HTS 8704.31) during the IEEPA pause:

  1. MFN base rate (trucks): 25% (U.S. “chicken tax” applies to pickups).
  2. IEEPA baseline (pause): +10%.
  3. Section 232 auto: +25%.
  4. Effective rate (during pause): 60%.

Passenger vehicles (2.5% MFN) face lower absolute rates but the same IEEPA + Section 232 stack. Hard disk drives are more favorable: 0% MFN + 10% IEEPA = 10% during pause. Our Captain tariff tracker monitors Thailand-specific rate changes across all categories.

Top Affected HTS Chapters and Sectors

Thailand’s export sectors vary significantly in their tariff exposure profile. Electronics (HDD) face manageable IEEPA-only exposure; vehicles face the compounded Section 232 + IEEPA stack; rubber and tires face moderate combined rates; and processed foods carry meaningful base MFN rates plus IEEPA.

Hard Disk Drives and Electronics (Ch 84-85)

Seagate and Western Digital operate their largest HDD assembly facilities in Thailand. U.S. data center operators, PC assemblers, and backup storage providers rely on Thailand-origin HDDs as the primary supply source for mechanical hard drive products. HDDs enter at 0% MFN; IEEPA adds 10-36% depending on pause status. For a $100M annual HDD procurement, the swing from 10% (pause) to 36% (post-pause) is $26M in additional duties. Our how to calculate U.S. tariffs guide covers electronics tariff calculation methodology.

Passenger Vehicles and Auto Parts (Ch 87)

Thailand is the largest automotive producer in Southeast Asia, with Toyota, Honda, Isuzu, and Ford all operating significant assembly operations. Thailand-assembled vehicles face Section 232 at 25% plus IEEPA, a significant stack on top of MFN rates of 2.5% (passenger cars) to 25% (light trucks/pickups). This makes Thailand-origin vehicles among the most highly tariffed in the U.S. import landscape post-2025.

Rubber and Tires (Ch 40)

Thailand is the world’s largest natural rubber producer and a major tire manufacturer. Natural rubber (HTS 4001) enters at 0% MFN; IEEPA at 10-36% applies. Pneumatic tires face MFN rates of 2.5-4.5% plus IEEPA. Combined effective rates on tires during the pause: 12.5-14.5%; post-pause: 38.5-40.5%. U.S. auto parts distributors and OEM tire buyers with Thailand-origin supply chains should model both rate scenarios.

Seafood and Processed Foods (Ch 3, 16)

Canned tuna is one of Thailand’s highest-volume exports to the U.S., Thailand processes a significant share of global tuna catch into retail canned products. Canned tuna (HTS 1604.14) faces an MFN rate of 12.5%; IEEPA adds 10-36%. Combined post-pause rate: 48.5%, dramatically increasing landed cost for private-label and branded canned tuna importers. Our trade advisory services team models seafood tariff scenarios.

GSP Eligibility for Thailand: Current Status

Thailand’s GSP status is partial and product-specific. Not all Thailand-origin goods qualify, and the program requires active origin documentation to claim.

Which Thailand Products Retain GSP Treatment

Thailand remains GSP-eligible for a subset of manufactured goods where USTR has not removed eligibility for IP or labor concerns. Eligible product categories are listed on the USTR GSP program page by HTS subheading. GSP-eligible Thai goods enter at 0% MFN; IEEPA applicability to GSP goods varies by exemption status. Check CBP GSP for current claim procedures.

How to Claim GSP on Eligible Entries

GSP claims require a Form A (Certificate of Origin) issued by Thai customs authorities, showing Thailand as the country of origin and the product as qualifying under GSP criteria. Importers claim GSP preference on the entry by entering the SPI (Special Program Indicator) “A” in the tariff classification field. Our tariff and customs duty consulting team verifies GSP eligibility by HTS subheading and prepares claim documentation.

How Importers Calculate Landed Cost on Thailand-Origin Goods

Thailand landed cost modeling requires three dimensions: IEEPA pause vs. post-pause rate, GSP eligibility check by HTS code, and Section 232 applicability for vehicles and steel. The combination of high announced IEEPA rate (36%) and significant MFN rates on vehicles and seafood creates meaningful worst-case exposure.

Worked Example

Annual procurement of $10M in Thailand-origin canned tuna (HTS 1604.14, MFN 12.5%): Pause (10% IEEPA): 22.5% effective = $2.25M duty. Post-pause (36% IEEPA): 48.5% effective = $4.85M duty. Delta: $2.6M on a single category purchase program. The Captain tariff tracker monitors Thailand-specific IEEPA status in real time. Our tariff consulting firm team provides Thailand-specific landed cost modeling.

Common Landed-Cost Pitfalls

  • Failing to model the 36% post-pause IEEPA rate on high-MFN-base categories like canned tuna and pickups.
  • Claiming GSP on products that have been removed from Thailand’s GSP eligibility list without verifying current USTR published list.
  • Overlooking the “chicken tax” 25% MFN rate on light trucks and pickup truck classifications for Thailand-assembled vehicles.
  • Missing Section 232 auto applicability on Thailand-assembled passenger vehicles and trucks.

Mitigation Strategies for Importers Sourcing from Thailand

Thailand-origin importers have limited structural mitigation tools absent an FTA, but GSP optimization, FTZ deferral, and nearshoring contingencies provide meaningful risk management.

GSP Claim Optimization

For Thailand-origin goods that retain GSP eligibility, active GSP claims reduce MFN base rates to 0%. Combined with monitoring whether IEEPA applies to GSP-eligible goods (subject to USTR exemption decisions), GSP optimization can meaningfully reduce effective rates on qualifying categories.

Nearshoring Contingencies

Thailand’s 36% post-pause IEEPA rate is high enough that diversification to Indonesia (32%), Malaysia (24%), or Vietnam (46%) on a rate basis, or to India (26%) for certain textiles and foods, may provide landed cost advantages. The nearshoring and friendshoring strategy framework structures origin-by-origin analysis for Thailand importers evaluating supply chain alternatives.

FTZ Admission for High-Volume HDD and Electronics

For high-volume HDD and electronics procurement from Thailand, Foreign Trade Zone admission defers IEEPA duty payments. Given the magnitude of the potential rate swing (10% to 36%), FTZ admission provides operational flexibility to delay withdrawal until IEEPA status is clearer, or until rate changes are reflected in pricing negotiations with domestic buyers.

Importers managing multi-origin supply chains can benchmark landed costs across our full country tariff series: European Union, Taiwan, Mexico, Brazil, Japan, South Korea, and Canada.

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Frequently Asked Questions

What is the current U.S. tariff rate on Thailand imports?

During the 90-day IEEPA pause: MFN base rate + 10%. Thailand’s announced Liberation Day rate of 36% reinstates if the pause expires. Hard disk drives face 0% MFN + 10% IEEPA = 10% (pause). Vehicles face 2.5% MFN + 25% Section 232 + 10% IEEPA = 37.5% (pause). Canned tuna faces 12.5% MFN + 10% IEEPA = 22.5% (pause). GSP-eligible products may enter at 0% MFN plus applicable IEEPA. Check the Captain tariff tracker for current HTS-level rates.

Are Thailand tariffs still in effect in 2026?

Yes. IEEPA (10% pause baseline) applies to all Thailand-origin goods. Section 232 autos (25%), steel (25%), and aluminum (10%) are active. GSP partial eligibility continues for qualifying product categories. The 36% Liberation Day rate reinstates if the 90-day pause expires without a negotiated resolution.

Which HTS chapters carry the highest U.S. tariff on Thailand-origin goods?

Highest effective rates: pickup trucks (Ch 87, “chicken tax” 25% MFN + 25% Section 232 + IEEPA); canned tuna (Ch 16, 12.5% MFN + IEEPA); tires (Ch 40, 2.5-4.5% MFN + IEEPA + Section 232 steel if applicable); jewelry (Ch 71, 6.5-7% MFN + IEEPA). Hard disk drives (Ch 84) carry the most favorable profile at 0% MFN + IEEPA only.

How does the tariff stack layer on a single entry?

MFN base rate + IEEPA (10% pause / 36% post-pause) + Section 232 (25% for autos; 25% steel; 10% aluminum) = effective rate on customs value. GSP reduces the MFN base to 0% for eligible product categories. Each layer is additive, applied to the same declared customs value.

Can I use an FTZ to defer U.S. tariffs on Thailand imports?

Yes. Foreign Trade Zones defer IEEPA and Section 232 duty payments on Thailand-origin goods. For HDD and electronics importers facing the 10% to 36% IEEPA swing risk, FTZ admission provides deferral flexibility. Goods admitted during the pause and withdrawn post-pause pay the higher rate at withdrawal, FTZ timing strategy must be actively managed.

Are Thailand tariffs eligible for drawback or refund?

IEEPA and Section 232 duties paid on Thailand-origin goods qualify for manufacturing drawback (99% recovery under 19 USC 1313) when imported goods are incorporated into exported products. For U.S. data storage companies that import Thailand-origin HDDs and export finished storage systems, manufacturing drawback programs can recover IEEPA costs on exported portions of production.

How often do U.S. tariff rates on Thailand change?

IEEPA rates have changed multiple times since April 2025, with Thailand’s 36% rate pending reinstatement if the pause expires. Section 232 TRQ rates update quarterly. GSP eligibility changes when USTR conducts annual reviews. The Captain tariff tracker provides Thailand-specific rate monitoring and alerts.

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How to Calculate U.S. Import Tariffs (Ad Valorem, Specific, Compound)

Calculating the correct tariff before a shipment arrives is one of the most valuable steps an importer can take. Errors in duty estimation lead to cash flow surprises, post-entry audits, and costly penalties. This guide explains the three main tariff calculation methods used by U.S. Customs and Border Protection (CBP), walks through the stacking of multiple duty programs, and shows how to apply them to real entries.

Why Tariff Calculation Matters in 2026

The U.S. tariff landscape has grown significantly more complex since 2018. A single entry may carry: a base Most Favored Nation (MFN) rate, a Section 232 rate on steel or aluminum content, a Section 301 rate on Chinese-origin goods, a Liberation Day IEEPA rate, and an antidumping (AD) or countervailing duty (CVD) rate from a USITC order. Missing any one of these layers understates landed cost. Working with a tariff consulting firm that models all applicable programs simultaneously reduces this risk.

Step 1: Determine the HTS Classification

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Every tariff calculation starts with the correct 10-digit Harmonized Tariff Schedule (HTS) subheading. The classification governs the applicable MFN rate, any special program rates, and eligibility for FTA preferences. Misclassification is the most common cause of duty underpayment or overpayment. CBP issues binding rulings that are legally binding for the specific importer and product and protect against penalty in post-entry audits. Classification follows the six General Rules of Interpretation (GRI) applied in sequence.

Step 2: Establish the Customs Value

All ad valorem and compound tariff calculations use the customs value as their base. The primary method is transaction value under 19 U.S.C. §1401a: the price actually paid or payable, adjusted upward for packing costs paid by the buyer, selling commissions, assists (tooling or materials provided free to the manufacturer), and royalties the buyer must pay as a condition of sale.

When transaction value is not applicable (related-party transactions, barter), CBP applies secondary methods in order: transaction value of identical goods, transaction value of similar goods, deductive value, computed value, and fall-back. Our trade advisory services team regularly assists importers in defending or optimizing their customs valuation methodology.

First Sale Valuation

Under CBP’s First Sale program, importers may use the price paid at the first arm’s-length sale in the distribution chain (the manufacturer’s sale to the middleman) rather than the higher importer-paid price. This lower base reduces the ad valorem duty and also reduces the base on which Section 301, IEEPA, and other percentage-rate programs are calculated, compounding the savings.

The Three Tariff Calculation Methods

Ad Valorem Tariffs

An ad valorem tariff is expressed as a percentage of customs value. It is the most common method in the U.S. HTS. For example, HTS 6203.42.4011 (men’s cotton denim trousers) carries a 16.6% MFN rate.

Formula: Duty = Customs Value x Ad Valorem Rate

A shipment with a $50,000 customs value owes $50,000 x 16.6% = $8,300 in MFN duty. If the goods are of Chinese origin and subject to Section 301 List 3 at 25%, that adds $12,500. Any IEEPA rate stacks further on top.

Specific Tariffs

A specific tariff is charged per unit of measure regardless of value. Examples include crude oil (5.25 cents per barrel) and avocados ($0.047 per kilogram). Specific tariffs become proportionally more burdensome when commodity prices fall.

Formula: Duty = Quantity x Specific Rate

A shipment of 10,000 kilograms of avocados at $0.047/kg owes $470 in MFN duty regardless of market price.

Compound Tariffs

Compound tariffs combine an ad valorem and a specific component, appearing in textile, footwear, and certain agricultural categories. A rubber-soled shoe upper might carry “12.5% + $0.20/pair.” Both components are calculated on the same entry and summed.

Formula: Duty = (Customs Value x Ad Valorem Rate) + (Quantity x Specific Rate)

Stacking Multiple Tariff Programs

A 2026 import entry from China may carry four or more concurrent tariff programs. The calculation follows this sequence:

  1. Determine the MFN rate from the HTS 10-digit subheading.
  2. Check Section 232 applicability: steel (Ch. 72-73, 25%), aluminum (Ch. 76, 10%), copper (Ch. 74, 25%), or autos (Ch. 87 specified headings, 25%).
  3. Check Section 301 applicability: if origin is China, identify the List (1-4A) and applicable rate.
  4. Check IEEPA Liberation Day rate: 10% Annex I for most countries, or the applicable Annex II country rate (145% for China as of mid-2026).
  5. Check AD/CVD orders: search the CBP AD/CVD search tool and ITA Enforcement and Compliance database.
  6. Check FTA preferential rate: USMCA, KORUS, etc. reduce or eliminate the MFN layer only — they do not offset Section 232, 301, or IEEPA.

The Captain tariff tracker automates this multi-program calculation for any HTS code and country of origin combination.

Worked Example: Steel Pipe Fitting from China

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Product: Steel pipe fitting, HTS 7307.93.9000, origin China, customs value $100,000.

Program Rate Duty on $100,000
MFN (ad valorem) 4.3% $4,300
Section 232 (steel articles) 25% $25,000
Section 301 List 3 (China) 25% $25,000
IEEPA Liberation Day (China) 145% $145,000
Total duty 199.3% $199,300

The combined effective rate of 199.3% makes this product economically unimportable from China at most market prices. This type of analysis drives sourcing diversion to alternative countries. For context on current rates by country, see our current U.S. tariff rates by country reference.

Post-Entry Duty Recovery

Importers who overpay duties have recovery options. The duty drawback program allows refund of duties paid on imported goods that are subsequently exported or destroyed. IEEPA-specific mechanisms are addressed in our guide on IEEPA tariff refunds. Protests filed within 90 days of CBP liquidation can contest the classification, value, or applicable rate.

Frequently Asked Questions

What is an ad valorem tariff?

An ad valorem tariff is a duty expressed as a percentage of the customs value of imported goods. It is the most common tariff type in the U.S. HTS. The duty equals the customs value multiplied by the applicable rate.

What is the difference between a specific and compound tariff?

A specific tariff is charged per unit of measure (for example, $0.05 per kilogram) regardless of value. A compound tariff combines a percentage component and a per-unit component; both are calculated and summed for the total duty owed.

How is customs value determined?

The primary method is transaction value: the price paid or payable for the goods when sold for export to the United States, adjusted for additions such as packing, assists, royalties, and proceeds of resale under 19 U.S.C. §1401a.

Can multiple tariff programs apply to the same shipment?

Yes. A single entry from China may carry an MFN rate, Section 232, Section 301, IEEPA Liberation Day, and AD/CVD rates simultaneously. All applicable rates are calculated on the same customs value and summed; there is no offsetting between programs.

What is First Sale valuation and how does it reduce duties?

First Sale allows an importer to declare the factory sale price (the first arm’s-length sale in the chain) as the customs value rather than the higher importer-paid price. Because most tariff programs are ad valorem percentages calculated on customs value, a lower value base reduces the total duty owed across all stacked programs.

What is a binding ruling and why do I need one?

A CBP binding ruling is a written decision committing CBP to a specific HTS classification for a particular importer and product. It provides certainty before importation and protects against penalty in post-entry audits. Submit requests through the CBP Ruling Request program with full product description and supporting technical documentation.

How do I challenge a CBP duty assessment?

File a protest with CBP within 180 days of the date of liquidation (finalization) of the entry. The protest can contest the classification, value, applicable rate, or any other matter affecting the amount of duty. If CBP denies the protest, appeal to the Court of International Trade.

Get Precise Tariff Analysis for Your Import Program

Tariff calculation errors compound at scale. A 1% misclassification on a $10 million annual import program means $100,000 in mismeasured duty exposure. Our tariff consulting team provides HTS classification reviews, tariff stacking analysis, and customs value optimization. Trade advisory services from CargoTrans are available for importers at every volume level.

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U.S. Tariffs on Brazil: Steel Quotas and Reciprocal Rate

U.S. tariffs on Brazil imports in 2026 are anchored by Section 232 steel tariffs administered through a Tariff Rate Quota system, a structure that gives Brazil an allocated volume of steel exports at 0% before the 25% over-quota rate applies, combined with the IEEPA Liberation Day baseline rate. Brazil is a top-fifteen U.S. import source with a concentrated export profile in steel, agricultural commodities, aircraft, and petroleum. This guide covers every applicable tariff authority and the operational strategies importers use to manage Brazil-origin tariff exposure.

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U.S.-Brazil Trade Snapshot in 2026

Brazil’s trade relationship with the United States is shaped by its position as the world’s leading exporter of soybeans, sugar, coffee, and orange juice, and as a major global steel producer. U.S. tariff exposure for Brazil-origin goods is concentrated in steel, where Section 232 TRQ mechanics matter significantly, and in agricultural commodities, where MFN and IEEPA baseline rates apply.

Brazil as a U.S. Trading Partner

The U.S. imported approximately $38 billion in goods from Brazil in 2024, making it approximately the 12th-largest import source. Brazil’s export mix to the U.S. is commodity-heavy: semi-finished steel slabs (the single largest Brazil export to the U.S.), soybeans, crude oil, aircraft (Embraer), coffee, and iron ore dominate the trade flow. Unlike China or the EU, Brazil does not face a high announced IEEPA rate, its Liberation Day rate of 10% is at the universal baseline, reflecting a relatively smaller bilateral trade surplus. Our current U.S. tariff rates by country page provides context.

Key Import Categories from Brazil

  1. Semi-finished steel and steel mill products (HTS Chapter 72): slabs, billets, hot-rolled coil.
  2. Iron ore and ferroalloys (HTS Chapter 26): iron ore pellets, ferrosilicon, ferrochrome.
  3. Soybeans and agricultural commodities (HTS Chapter 12): soybeans, cotton, tobacco.
  4. Aircraft and aerospace components (HTS Chapter 88): Embraer regional jets, aircraft parts.
  5. Coffee (HTS Chapter 9): green coffee, roasted coffee, instant coffee.
  6. Crude oil and petroleum products (HTS Chapter 27).

Current U.S. Tariff Stack on Brazil Imports

Brazil’s tariff profile is defined by the Section 232 steel TRQ, which creates a quarterly quota fill dynamic, combined with IEEPA at the 10% baseline rate that affects all categories.

Statutory Authorities in Play

IEEPA Liberation Day (Executive Order 14257, April 2025)

Brazil’s announced reciprocal rate was 10%, the universal baseline rate, not an elevated country-specific rate. This means Brazil faces the same IEEPA rate as the 90-day pause rate: 10% on all goods unless specifically exempted. Verified via Federal Register.

Section 232 steel (Trade Expansion Act §232)

  • Brazil operates under a quarterly Tariff Rate Quota for steel. Within-quota steel enters at 0%.
  • Over-quota steel faces 25%. Brazil’s TRQ is one of the most actively managed in the Section 232 program because semi-finished steel slabs (a Brazil specialty) are critically needed by U.S. steel mills that lack sufficient domestic slab production. Monitor the CBP steel TRQ fill rates quarterly, when the TRQ fills, the rate jumps from 0% to 25% mid-quarter.

Section 232 aluminum (10%)

Brazilian aluminum face 10% Section 232. Brazil is a significant aluminum producer.

MFN/NTR base rates

Soybeans enter at 0% MFN. Coffee at 0% MFN. Aircraft at 0% MFN (HTS 88.02). Steel at 0-5% MFN depending on product form.

How the Rates Layer on a Single Entry

Brazil-origin semi-finished steel slabs (HTS 7207.12) imported within the quarterly TRQ:

  1. MFN base rate: 0%.
  2. Section 232 (within TRQ): 0%.
  3. IEEPA baseline: +10%.
  4. Effective rate (within TRQ): 10%.

The same slabs imported after the quarterly TRQ fills:

  1. MFN base rate: 0%.
  2. Section 232 (over TRQ): +25%.
  3. IEEPA baseline: +10%.
  4. Effective rate (over TRQ): 35%.

The TRQ fill date is therefore the pivotal operational variable for Brazil steel importers. Our Captain tariff tracker monitors Brazil TRQ fill status in real time.

Top Affected HTS Chapters and Sectors

Brazil’s tariff exposure concentrates in steel (Section 232 TRQ) and agricultural commodities (IEEPA baseline), with aircraft representing a high-value category that enters at low effective rates.

Semi-Finished Steel and Steel Mill Products (Ch 72-73)

Brazil is the primary global supplier of semi-finished steel slabs to U.S. integrated steel mills that use slabs as feedstock for rolling operations. Companies like Nucor, ArcelorMittal USA, and Cleveland-Cliffs import Brazil-origin slabs to supplement domestic slab production. Section 232 TRQ mechanics make slab import planning extremely time-sensitive: quota exhaustion mid-quarter can shift a $200/ton landed cost advantage to a $50/ton disadvantage overnight when the over-quota rate kicks in. Our steel and aluminum tariffs guide covers Section 232 TRQ mechanics. Our Section 232 tariffs analysis covers the exclusion petition process for over-quota situations.

Iron Ore and Ferroalloys (Ch 26, 72)

Brazil’s Vale is the world’s largest iron ore producer. U.S. steel mills that operate blast furnace operations (increasingly rare but still active) import Brazil-origin iron ore and pellets. Iron ore itself carries 0% MFN and may be exempted from IEEPA, importers should verify current exemption status. Ferroalloys (ferrosilicon, ferrochrome, ferromanganese) face MFN rates of 1.5-5% plus IEEPA baseline.

Soybeans and Agricultural Commodities (Ch 12)

Brazil is the world’s largest soybean exporter and competes directly with U.S. soybeans in global markets. U.S. imports of Brazil soybeans are rare (the U.S. is an exporter). However, Brazilian soy-derived products, soybean oil (Ch 15), soy protein concentrates (Ch 23), do enter the U.S. and face IEEPA baseline plus MFN rates of 0-7.9%. Coffee (Ch 9) enters at 0% MFN, the U.S. does not produce coffee and applies no MFN duty to coffee imports. IEEPA baseline at 10% applies unless a coffee-specific exemption is in effect.

Aircraft and Aerospace Components (Ch 88)

Embraer is Brazil’s most high-value U.S. export by per-unit value, E175 and E190 regional jets sold to U.S. airlines like American Eagle, SkyWest, and Envoy face 0% MFN. IEEPA 10% baseline applies unless aircraft are specifically exempted. For a $25 million Embraer E175, a 10% IEEPA duty represents $2.5 million in additional cost per aircraft, a significant purchase price increment for regional aviation economics. Embraer and U.S. airlines have been active in seeking IEEPA aircraft exemptions through USTR and Commerce channels.

Section 232 Steel TRQ System: How Brazil’s Quota Works

The Brazil Section 232 steel TRQ is unlike any other bilateral trade arrangement in the U.S. tariff system. Understanding the quarterly quota mechanics is essential for Brazil steel importers.

Brazil’s Quarterly Quota Allocation

Brazil’s steel TRQ is allocated quarterly based on historical import volumes. The quarterly allocation is published by CBP at the start of each quarter. When cumulative Brazil steel entries reach the quarterly quota, CBP switches to collecting the 25% over-quota deposit on subsequent entries. Importers must track CBP quota utilization daily during the final weeks of each quarter to time shipment arrivals appropriately. Early-quarter arrivals secure within-quota rates; late-quarter arrivals risk over-quota exposure.

Over-Quota Penalty Rate

The over-quota rate of 25% Section 232 + 10% IEEPA = 35% effective rate on customs value. For a $1,000,000 CIF slab entry, the cost delta between within-quota (10% IEEPA = $100,000) and over-quota (35% = $350,000) is $250,000. Shipment timing strategy, including vessel routing, arrival port selection, and customs entry filing timing, can determine which quota applies to a given shipment. Our tariff consulting firm team advises on TRQ timing strategy for Brazil steel importers.

How Importers Calculate Landed Cost on Brazil-Origin Goods

Brazil landed cost modeling requires two scenarios for steel: within-TRQ (0% Section 232 + 10% IEEPA = 10%) and over-TRQ (25% Section 232 + 10% IEEPA = 35%). For agricultural and aircraft imports, the analysis is IEEPA baseline plus MFN.

Worked Example

A Brazilian steel slab purchase: $500,000 CIF, within quarterly TRQ = $50,000 duty (10%). Same purchase, TRQ exhausted = $175,000 duty (35%). Our Captain tariff tracker and tariff and customs duty consulting team model TRQ timing scenarios and monitor CBP utilization reports for Brazil steel importers.

Common Landed-Cost Pitfalls

  • Not monitoring CBP TRQ fill status weekly during the final month of each quarter.
  • Assuming aircraft imports are IEEPA-exempt without verifying current exemption status.
  • Forgetting that IEEPA 10% applies even within the Section 232 TRQ window for steel.
  • Overlooking Section 232 aluminum (10%) on Brazilian aluminum products, Brazil has significant aluminum smelting capacity.

Mitigation Strategies for Importers Sourcing from Brazil

Brazil-origin importers have several targeted mitigation tools, especially in the steel sector where Section 232 TRQ management and the exclusion process provide structured relief pathways.

TRQ Quota Management and Shipment Timing

The primary mitigation tool for Brazil steel importers is within-TRQ shipment scheduling. Working with logistics providers to time vessel arrivals and customs entry filings within the quota window reduces Section 232 exposure from 25% to 0%. Our trade advisory services team provides TRQ monitoring and shipment timing advisory for Brazil steel programs.

Section 232 Exclusion Process

For specific Brazil-origin steel products not covered by the TRQ or for over-quota situations, the Section 232 tariffs exclusion process provides product-specific relief. Brazil slab has historically received exclusion support given the structural shortage of U.S. domestic slab production, U.S. steel mills have successfully argued that Brazil slabs are not domestically available in sufficient quantity.

First Sale for Export

For Brazil imports transacting through commodity trading intermediaries, First Sale for Export reduces the dutiable value to the producer’s mill price rather than the trader’s selling price. For steel slab purchases through steel trading companies, First Sale can reduce the duty base by 5-15%.

Importers managing multi-origin supply chains can benchmark landed costs across our full country tariff series: Thailand, Malaysia, Mexico, Taiwan, Indonesia, Japan, South Korea, Vietnam, Canada, and India.

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Frequently Asked Questions

What is the current U.S. tariff rate on Brazil imports?

Brazil-origin goods face a 10% IEEPA baseline rate (Brazil’s Liberation Day announced rate was 10%, the universal baseline). Steel imports face Section 232 TRQ mechanics: 0% within-quota + 10% IEEPA = 10% effective; 25% over-quota + 10% IEEPA = 35% effective. Aluminum faces 10% Section 232 + 10% IEEPA = 20%. Agricultural commodities (soybeans, coffee) and aircraft carry 0% MFN + 10% IEEPA unless specifically exempted. Use the Captain tariff tracker for current rates.

Are Brazil tariffs still in effect in 2026?

Yes. IEEPA (10% baseline) applies to all Brazil-origin goods unless specifically exempted. Section 232 steel TRQ and the 25% over-quota rate are active. Section 232 aluminum (10%) is active. There is no U.S.-Brazil FTA providing preferential duty rates.

Which HTS chapters carry the highest U.S. tariff on Brazil-origin goods?

Highest effective rates: steel (Ch 72-73) at 35% when over-quota (25% Section 232 + 10% IEEPA); aluminum (Ch 76) at 20% (10% Section 232 + 10% IEEPA). Agricultural commodities (Ch 9, 12) and aircraft (Ch 88) face only the 10% IEEPA baseline plus any applicable MFN rate, generally 0-7% MFN depending on specific product.

How does the tariff stack layer on a single entry?

For steel within TRQ: 0% Section 232 + 10% IEEPA = 10%. For steel over TRQ: 25% Section 232 + 10% IEEPA = 35%. For aluminum: 10% Section 232 + 10% IEEPA = 20%. For other goods: MFN base rate + 10% IEEPA = effective rate. Each percentage applies additively to the same declared customs value.

Can I use an FTZ to defer U.S. tariffs on Brazil imports?

Yes. Foreign Trade Zones defer Section 232 and IEEPA duty payments until goods are withdrawn for U.S. consumption. For steel slab importers facing TRQ uncertainty, FTZ admission can provide operational flexibility, but the rate paid at withdrawal reflects the rate in effect at withdrawal, not admission. If goods are admitted within TRQ and the next quarter’s TRQ fills before withdrawal, over-quota rates do not retroactively apply to previously admitted goods.

Are Brazil tariffs eligible for drawback or refund?

Section 232 and IEEPA duties paid on Brazil-origin steel qualify for manufacturing drawback (99% recovery under 19 USC 1313) when U.S. steel mills produce finished steel products incorporating Brazil-origin slabs and export those products. For U.S. steel producers with active export programs, manufacturing drawback on Brazil-origin slab inputs is one of the most valuable drawback categories in the U.S. steel industry.

How often do U.S. tariff rates on Brazil change?

The Section 232 steel TRQ allocation changes quarterly. IEEPA rates are set by executive order and can change with limited advance notice. Section 232 exclusion petition outcomes can change the applicable rate for specific products. The Captain tariff tracker monitors Brazil TRQ fill rates and IEEPA changes in real time.

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Current U.S. Tariff Rates by Country (Live Table)

Tracking effective U.S. import tariff rates by country of origin is one of the most operationally demanding tasks for compliance teams in 2026. The base Most Favored Nation (MFN) rate, Section 232 and Section 301 programs, the Liberation Day IEEPA framework, and active antidumping and countervailing duty (AD/CVD) orders all contribute to a rapidly shifting composite rate. This page explains how the rate structure works and provides a country-by-country summary of key programs and current exposure levels.

How U.S. Tariff Rates Work by Country of Origin

U.S. tariff rates are product-specific first and country-specific second. The same HTS subheading may carry a zero rate under a free trade agreement for one country, a 25% Section 301 rate for Chinese-origin goods, and a 10% Liberation Day baseline for most others. The composite effective tariff rate is the sum of all applicable programs, not a choice between them.

Layer 1: MFN Base Rate

The MFN base rate from the Harmonized Tariff Schedule applies to all WTO members and other countries on the U.S. normal trade relations list. Rates range from zero for many technology products and raw materials to over 30% for certain apparel, footwear, and sugar products. This is the starting point for any tariff calculation. The authoritative published schedule is maintained by the U.S. International Trade Commission (USITC) at the HTS Online database.

Layer 2: Preferential (FTA) Rates

Goods qualifying for originating status under a U.S. free trade agreement receive a reduced or zero MFN rate. Active U.S. FTAs include USMCA (Canada and Mexico), KORUS (South Korea), the U.S.-Japan Trade Agreement 2020, and agreements with Singapore, Australia, Chile, Colombia, Peru, and several others. Preferential rates reduce only the MFN component; they do not offset Section 232, Section 301, or IEEPA tariffs, which are imposed under separate statutes.

Layer 3: Remedial Tariffs (232, 301, IEEPA)

These programs represent the most significant tariff exposure for most importers in 2026:

  • Section 232: 25% on steel articles (Chapters 72-73), 10% on aluminum (Chapter 76), 25% on copper (Chapter 74), and 25% on autos and auto parts (Chapter 87 specified headings). Country-specific TRQ arrangements exempt quota volumes for certain allies.
  • Section 301: Applies only to Chinese-origin goods at rates from 7.5% to 25%+ depending on the applicable List.
  • IEEPA Liberation Day: 10% baseline (Annex I) on imports from nearly all countries, with country-specific rates (Annex II) for major deficit partners. China currently faces 145% under IEEPA.

Layer 4: AD/CVD Orders

Antidumping and countervailing duty orders are product and country-specific and can carry rates well above 100%. Active orders cover a wide range of Chinese, Vietnamese, Indian, and other origin goods in solar, steel, seafood, and other categories. Rates vary by manufacturer within the same country. The CBP AD/CVD search tool and the ITA Enforcement and Compliance database are the authoritative sources for current cash deposit rates.

Current Tariff Exposure by Major Trading Partner

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The summary below reflects the primary tariff programs as of mid-2026. For product-specific exact rates, use the Captain tariff tracker.

China

China faces the most complex tariff stack available. MFN rates apply at the product level. Section 301 rates of 7.5% to 25%+ apply across virtually all categories. The IEEPA Liberation Day rate on Chinese goods reached 145% by May 2025. Combined effective rates on many manufactured goods exceed 150%, making Chinese sourcing economically prohibitive for large product categories. Understanding Section 301 tariffs on China is foundational to any China supply chain analysis. The Liberation Day tariff framework adds further layers that interact with Section 301.

Our complete guide to U.S. tariffs on China covers every statutory authority, the current rate stack, and step-by-step mitigation strategies.

Canada

Canada benefits from USMCA zero rates on most qualifying originating goods. Section 232 TRQs apply to steel and aluminum: volumes within the annual quota face zero Section 232, while above-quota volumes face 25%. The Liberation Day 10% baseline applies to non-USMCA-qualifying Canadian goods. Transshipment enforcement has increased scrutiny of Canadian entries containing Chinese-origin inputs that do not meet USMCA rules of origin.

See the U.S. tariffs on Canada guide for a full breakdown of USMCA eligibility, Section 232 TRQ mechanics, and the Liberation Day framework.

Mexico

Mexico mirrors Canada under USMCA for qualifying goods. Section 232 TRQs apply to steel and aluminum similarly. A significant enforcement priority in 2025-2026 has been Chinese-origin goods transshipped through Mexico without undergoing substantial transformation, which are subject to the full Chinese tariff stack regardless of the Mexican point of export.

Our U.S. tariffs on Mexico guide details USMCA qualification requirements, the executive orders on fentanyl, and nearshoring considerations.

European Union

EU goods were assigned a 20% Liberation Day Annex II rate, paused at 10% as of April 9, 2025. Section 232 steel and aluminum tariffs apply at 25% on volumes outside TRQs. No FTA between the U.S. and EU currently exists (the TTIP negotiations concluded without agreement). The rate trajectory for EU goods depends on bilateral trade deal progress throughout 2026.

The U.S. tariffs on EU guide covers Section 232 steel and aluminum, the Liberation Day rate trajectory, and sector-by-sector exposure for European exporters.

Vietnam

Vietnam was assigned the highest Annex II rate of any major trading partner: 46%, paused at 10% during negotiations. Active AD/CVD orders cover Vietnamese solar panels, steel, catfish, and shrimp. Vietnam has been the primary China-plus-one beneficiary since 2018; the high Annex II rate and active AD/CVD coverage mean that alternative sourcing to Vietnam requires careful tariff modeling before commitment. See our analysis of the China-Plus-One strategy for how Vietnam compares with other alternatives.

Our U.S. tariffs on Vietnam guide covers the 46% reciprocal rate, active AD/CVD orders, and circumvention risk for importers sourcing through Vietnamese factories.

India

India was assigned a 26% Annex II rate under Liberation Day, paused at 10%. A preliminary bilateral deal framework announced in early 2026 may reduce this rate. Section 232 applies to Indian steel and aluminum. India has no FTA with the United States. Active AD/CVD orders cover certain Indian steel and chemical products.

The U.S. tariffs on India guide provides a full breakdown of the 26% Annex II rate, the preliminary bilateral framework, and Section 232 exposure for Indian steel and aluminum.

Japan

Japan was assigned a 24% Annex II rate, paused at 10%. The U.S.-Japan Trade Agreement 2020 provides preferential rates on certain agricultural and industrial goods at the MFN layer but does not offset Section 232 or IEEPA. Section 232 TRQs apply to Japanese steel under the 2022 arrangement.

Our U.S. tariffs on Japan guide covers the 24% Annex II rate, U.S.-Japan Trade Agreement 2020 preferences, and Section 232 steel TRQ mechanics.

South Korea

South Korea faces a 25% Annex II rate (paused at 10%) plus Section 232 for steel quantities above the KORUS TRQ. The KORUS FTA provides MFN-layer preferences on many manufactured goods. South Korean auto exports to the U.S. face the new Section 232 auto tariff for non-USMCA qualifying content.

The U.S. tariffs on South Korea guide details KORUS FTA eligibility, Section 232 steel TRQ mechanics, and auto tariff exposure for Korean-assembled vehicles.

Taiwan

Taiwan was assigned a 32% Annex II rate under Liberation Day, paused at 10% during negotiations. Taiwan is the dominant global source for advanced semiconductors. A Section 232 investigation targeting semiconductor imports directly raises the stakes for Taiwanese chipmakers and their U.S. buyers. No U.S.-Taiwan FTA exists. The U.S. tariffs on Taiwan guide covers the semiconductor Section 232 risk, the reciprocal rate structure, and compliance considerations for tech importers.

Brazil

Brazil was assigned a 10% Annex II rate under Liberation Day. Section 232 steel TRQs apply to Brazilian flat-rolled and semi-finished steel exports within historical quota volumes; above-quota volumes face 25%. Brazil also faces Section 201 safeguard tariffs on certain steel and solar products. Active AD/CVD orders cover Brazilian citric acid and certain steel products. See the U.S. tariffs on Brazil guide for a full breakdown of the Section 232 TRQ mechanics and GSP eligibility status.

Thailand

Thailand was assigned a 36% Annex II rate under Liberation Day, paused at 10% during negotiations. Thailand relies heavily on exports of hard disk drives, rubber, seafood, and automotive parts to the U.S. market. Partial GSP eligibility has historically reduced MFN rates on certain Thai goods, though the current GSP status requires verification. Our U.S. tariffs on Thailand guide covers the reciprocal rate framework, GSP eligibility categories, and affected HTS sectors.

Indonesia

Indonesia was assigned a 32% Annex II rate, paused at 10%. Indonesia’s primary U.S. exports include apparel, footwear, rubber, and seafood. GSP partial eligibility applies to select categories. Active AD/CVD orders cover certain Indonesian steel and biodiesel products. The U.S. tariffs on Indonesia guide covers the full reciprocal rate structure, GSP eligibility, and sector-specific tariff exposure.

Malaysia

Malaysia was assigned a 24% Annex II rate, paused at 10%. Malaysia is a major semiconductor packaging and assembly hub, particularly in Penang. A Section 232 investigation targeting semiconductor imports creates direct exposure for Malaysian chip packaging facilities. No U.S.-Malaysia FTA is in force. Our U.S. tariffs on Malaysia guide covers the semiconductor Section 232 risk, the reciprocal rate, and supply chain implications for tech importers.

How to Find the Current Rate for a Specific Product

No static reference remains accurate for long in the current environment. The most reliable verification sequence is:

  1. USITC HTS Online: authoritative MFN rate and any FTA column rates for the 10-digit HTS subheading.
  2. CBP ACE portal: shows all applicable rates and programs for a specific HTS/origin entry.
  3. Federal Register: all IEEPA proclamations and Section 232/301 actions are published here by Federal Register number.
  4. ITA Enforcement and Compliance: current AD/CVD cash deposit rates by manufacturer and country of origin.
  5. Captain tariff tracker: our daily-updated tracker aggregates all four sources into a single lookup for any HTS and origin combination.

Factoring Tariffs Into Total Cost of Ownership

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Procurement teams increasingly model tariff exposure as a core component of total cost of ownership alongside unit cost, lead time, quality, and logistics. At combined effective rates above 50%, the economics of alternative sourcing often become compelling even when factory prices in alternative countries are 20-30% higher.

Our trade advisory services team builds total cost models that incorporate all tariff layers, logistics differentials, FTZ and First Sale optimization, and drawback potential to produce fully loaded landed cost comparisons across sourcing scenarios. For importers currently weighing China versus Vietnam versus India alternatives, a tariff consulting engagement typically covers current effective rates, expected rate trajectory, qualifying rules of origin, and AD/CVD risk in each candidate country.

Frequently Asked Questions

Where can I find the current U.S. tariff rate for my product?

The USITC HTS Online gives the published MFN rate. CBP’s ACE portal shows the combined duty for an entry. The Federal Register is authoritative for IEEPA, Section 232, and Section 301 program rates. The ITA database covers AD/CVD. Our Captain tariff tracker aggregates all of these for quick product-level lookup.

What is the effective tariff rate on Chinese imports in 2026?

The effective rate varies by product but typically comprises MFN (product-specific), Section 301 (7.5% to 25%+), and IEEPA Liberation Day (145% as of mid-2026), plus any AD/CVD order rates. Combined effective rates on many manufactured goods from China exceed 150%.

Does USMCA eliminate all tariffs from Canada and Mexico?

USMCA eliminates MFN duties on qualifying originating goods but does not eliminate Section 232 steel and aluminum tariffs (which apply under a separate TRQ structure) or Liberation Day IEEPA tariffs on non-qualifying goods. Chinese-origin content transshipped without substantial transformation does not qualify for USMCA treatment.

Why does Vietnam have a 46% tariff rate?

Vietnam was assigned a 46% reciprocal rate under Liberation Day Annex II based on USTR’s trade deficit formula. This rate is paused at 10% during bilateral negotiations, but the 46% remains the scheduled rate if negotiations fail. The high rate reflects the large bilateral trade deficit the U.S. runs with Vietnam.

Do FTA preferential rates offset Section 232 tariffs?

No. FTA rates reduce or eliminate only the MFN component. Section 232 is imposed under the Trade Expansion Act of 1962, a separate legal authority. A Canadian steel product that is zero-rated under USMCA for its MFN duty still owes Section 232 on volumes above the TRQ threshold.

How often do U.S. tariff rates change?

MFN rates change rarely. Remedial tariff rates change frequently: Section 232 exclusions are updated quarterly, Section 301 exclusions have expiration dates, and IEEPA rates have been modified multiple times throughout 2025-2026. AD/CVD rates change at each annual review. Daily monitoring of Federal Register and CBP publications is necessary for import programs with ongoing exposure.

Stay Current on Tariff Rates

In a tariff environment that changes daily, static references decay quickly. Our Captain tariff tracker and trade advisory team provide real-time rate monitoring and alerts for importers with ongoing exposure across multiple programs and countries of origin.

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Section 232 Tariffs: Steel, Aluminum, Copper and Auto Duties Explained

Section 232 tariffs are import duties authorized by the Trade Expansion Act of 1962 when the U.S. Department of Commerce determines that imports threaten national security. The program covers steel, aluminum, copper, and autos. Rates run from 25% to 50% depending on the product and country of origin. For U.S. importers, these duties stack on top of Section 301 and Reciprocal Tariff Act rates, compounding landed cost pressure across multiple supply chains.

Under 19 USC §1862, the president can impose duties or quotas after a DOC investigation concludes that import volumes endanger domestic industrial capacity. The Bureau of Industry and Security (BIS) within the DOC administers the program and publishes all actions in the Federal Register.

Which Products Fall Under Section 232 in 2026

Section 232 coverage has expanded significantly since 2018. The four active product categories are below.

Steel and Steel Derivatives (HTS Chapter 72, 73)

A 25% tariff on steel mill products took effect March 23, 2018 (Proclamation 9705). HTS Chapters 72 and 73 cover hot-rolled coil, cold-rolled sheet, structural beams, pipes, tubes, and fabricated steel products. Several countries negotiated quota agreements in exchange for tariff exemptions. Those exemptions have been narrowed or eliminated for most trading partners in 2026. Work the steel and aluminum tariffs guide for current country-specific rates.

Aluminum and Aluminum Derivatives (HTS Chapter 76)

Aluminum entered the Section 232 program at 10% in March 2018 (Proclamation 9704). The rate was raised to 25% for most countries in 2026. HTS Chapter 76 covers primary aluminum, alloyed aluminum, plates, sheets, foil, tubes, and pipes. Derivative products (parts made primarily from aluminum) are also covered.

Copper and Copper-Intensive Products (HTS Chapter 74)

A 50% Section 232 tariff on copper was announced in 2026. HTS Chapter 74 covers refined copper, copper alloys, wire, rods, plates, and tubes. This is the highest Section 232 rate applied to any commodity. Importers sourcing copper wire, bus bars, or heat exchangers should recalculate landed costs immediately. Review the full copper tariff breakdown for HTS-level detail.

Autos and Auto Parts (HTS Chapter 87)

A 25% tariff on passenger vehicles and auto parts took effect in 2026. HTS Chapter 87 covers passenger cars, light trucks, and a defined list of auto parts. The parts list includes engines, transmissions, body stampings, axles, and suspension components. Vehicles qualifying under USMCA are subject to different treatment depending on regional content percentages.

Current Section 232 Rates and Duty Stacking

The table below shows the active Section 232 rates as of 2026:

  • Steel: 25% (most countries); higher for certain steel derivative products
  • Aluminum: 25% (most countries)
  • Copper: 50%
  • Autos and auto parts: 25%

Section 232 duties are additive. An importer bringing in Chinese steel pays the Section 232 steel duty (25%) plus Section 301 list duties (if the HTS code appears on a Section 301 list) plus the Reciprocal Tariff Act rate (145% for China). The combined rate can exceed 170% on affected steel products. Use the Captain tariff tracker to calculate stacked duties by HTS code and country of origin before each purchase order.

How the Section 232 Exclusion Process Works

BIS operates the Section 232 exclusion portal under 15 CFR Part 705. Importers, manufacturers, and other interested parties can request product-specific exclusions. An approved exclusion lets a named company import a defined product at zero Section 232 duty.

Eligibility Criteria

To qualify, the requester must show that the product is not produced in the U.S. in sufficient quantities, not produced in adequate quality, or not available in a timely manner from domestic sources. The request must identify the specific HTS subheading and describe the product in technical terms that match the actual import.

BIS Exclusion Portal Walkthrough

File the exclusion request through the BIS Section 232 exclusion portal. The submission requires a company profile, product description, quantity requested, domestic supplier objection process, and supporting documentation. After submission, domestic steel or aluminum producers can file objections within 30 days. BIS adjudicates the record and issues a determination published in the Federal Register. The USITC provides data support for BIS on many requests.

Common Rejection Reasons

BIS rejects exclusion requests when domestic availability is not adequately disproven, when the product description does not precisely match the HTS subheading, or when a domestic producer successfully objects with capacity evidence. Requests without specific mill certifications or technical specs are also frequently denied.

Section 232 vs Section 301 vs Section 122

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These three tariff authorities overlap but have different legal bases and triggers.

  • Section 232: National security threat to domestic industry. No expiration. Applies globally with country-specific carveouts. BIS administers.
  • Section 301: Unfair trade practices by a foreign government. China-specific in current application. USTR administers. See the full Section 301 tariffs on China analysis for list-by-list breakdowns.
  • Section 122: Balance-of-payments emergency. Maximum 15% rate. Maximum 150-day duration. Has not been used as a comprehensive surcharge in modern trade history.

The Reciprocal Tariff Act adds a fourth layer based on bilateral trade deficits. All four programs can apply simultaneously to a single shipment. The Trump tariff tracker shows live stacked rates for your HTS codes across all four authorities.

How Importers Reduce Section 232 Exposure

Three mechanisms reduce or defer Section 232 duties without changing the HTS classification:

  1. Foreign-Trade Zone (FTZ): Goods admitted to an FTZ before a rate proclamation takes effect enter at the pre-proclamation rate. FTZs also eliminate duties on goods re-exported without entering U.S. commerce.
  2. Customs bonded warehouse: Duties are deferred until withdrawal for consumption. If a rate drops or an exclusion is granted, the importer can withdraw at the lower rate.
  3. Section 232 exclusion: Company-specific exclusions eliminate the duty entirely for approved products and quantities.

A tariff consulting firm can identify which mechanism applies to your product and model the savings against setup costs. The trade advisory services team runs the landed cost comparison across all three options before recommending a strategy.

Frequently Asked Questions

Are Section 232 tariffs still active in 2026?

Yes. Section 232 tariffs on steel and aluminum remain fully active in 2026. Copper and auto parts were added in 2026. No sunset date applies. Congress can modify the program through legislation, but the executive orders implementing current rates remain in force.

What is the current Section 232 tariff rate on steel?

The base rate is 25% for most countries. Some country-specific agreements set different rates or quotas. Check the Federal Register for the most recent proclamation applying to your supplier’s country of origin.

Can I file a Section 232 exclusion request as an importer?

Yes. Importers, manufacturers, and purchasers of steel and aluminum products can file exclusion requests through the BIS Section 232 exclusion portal. The process requires product-specific documentation and a showing that domestic supply is insufficient.

Do Section 232 tariffs stack with Section 301 China tariffs?

Yes. If a Chinese steel product appears on a Section 301 list, both the Section 232 rate and the Section 301 rate apply. The Reciprocal Tariff Act rate also stacks. All three are cumulative on top of the base HTSUS Column 1 duty.

Is there a Section 232 refund mechanism?

There is no standalone refund program for Section 232 duties. However, Section 232 duties are generally eligible for duty drawback under 19 USC §1313, meaning importers who re-export finished goods can recover up to 99% of duties paid on the imported inputs.

What HTS codes are covered by Section 232 copper?

Section 232 copper covers HTS Chapter 74, which includes refined copper (7401-7403), copper alloys (7403-7407), copper plates, sheets, strip, and foil (7409-7410), copper tubes and pipes (7411), and copper wire (7408). Check the specific proclamation for the exact HTS subheadings covered.

How long does a Section 232 exclusion request take?

BIS targets 90 days for a determination, but complex requests with objections from domestic producers can take 6-12 months. Plan procurement timelines accordingly. An approved exclusion is retroactive to the date of filing, so duties paid during the review period can be recovered.

Section 232 exposure is predictable when you map it by HTS code before placing orders. The tariff consulting firm team runs HTS-level Section 232 analysis as part of every import cost review. The trade advisory services team then models exclusion eligibility, drawback recovery, and FTZ deferral to find the lowest landed cost path.

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