US Tariffs in 2026: What Changed and Why It Matters
The US tariff landscape has undergone dramatic changes. What was once an average effective tariff rate of 2.5% has jumped to approximately 13.7% — the highest level since the Smoot-Hawley Tariff Act of 1930. Whether you are a business importing raw materials, an e-commerce seller sourcing products overseas, or a consumer wondering why prices keep rising, understanding how tariffs work in 2026 is essential.
Use our free US tariff calculator to instantly estimate the import duties and total landed cost for your goods. This guide explains the current tariff structure, how duty calculations work, and strategies for managing tariff costs.
The Current US Tariff Structure (March 2026)
US import tariffs in 2026 operate as a layered system where multiple tariff programs can apply simultaneously to the same goods. Here is the current structure:
Layer 1: Section 122 Global Tariff (10%)
Following the Supreme Court's February 2026 ruling that struck down IEEPA-based tariffs as unconstitutional, the administration reimposed a global import surcharge under Section 122 of the Trade Act of 1974. This 10% tariff applies to nearly all imported goods entering the United States, regardless of origin.
Section 122 authorizes the president to impose temporary tariffs of up to 15% for 150 days to address large and serious balance of payments deficits. The current rate is set at 10%.
Layer 2: Country-Specific Tariffs
On top of the base 10% tariff, additional duties apply based on the country of origin:
| Country/Region | Additional Rate | Legal Basis | Total with Section 122 |
|---|---|---|---|
| China | 25% | Section 301 | 35% |
| Vietnam | 10% | Reciprocal tariff | 20% |
| India, Thailand, Indonesia | 8% | Reciprocal tariff | 18% |
| EU, Japan, South Korea, UK, Taiwan | 5% | Reciprocal tariff | 15% |
| Australia | 3% | FTA partner rate | 13% |
| Canada, Mexico (USMCA qualifying) | 0% | USMCA | 10% |
Layer 3: Section 232 — Steel and Aluminum (50%)
All steel and aluminum imports face a 50% tariff under Section 232 of the Trade Expansion Act, regardless of the country of origin. This rate was doubled from 25% on steel and 10% on aluminum in early 2025. The Section 232 tariff stacks on top of both the Section 122 base and any country-specific tariffs.
This means steel imported from China faces an effective tariff rate of 85% (10% + 25% + 50%), while steel from Canada faces 60% (10% + 0% + 50%).
Layer 4: Merchandise Processing Fee
The Merchandise Processing Fee (MPF) is a CBP fee of 0.3464% of the appraised value of imported goods, with a minimum of $31.67 and a maximum of $614.35 per entry. It applies to most commercial imports.
How to Calculate Your Total Import Duty
The formula for calculating total import duty is straightforward but involves stacking multiple layers:
- Determine your FOB value — the declared value of goods at the port of origin
- Add Section 122: FOB Value × 10%
- Add country-specific tariff: FOB Value × country rate (see table above)
- Add Section 232 if applicable: FOB Value × 50% (steel/aluminum only)
- Add MPF: (FOB + Shipping) × 0.3464%, clamped to $31.67–$614.35
- Sum all components = Total Duty
Your landed cost is the FOB value + shipping/insurance + total duty. This is the true cost of your imported goods.
Real-World Tariff Calculation Examples
Example: $10,000 of Electronics from China
| Component | Rate | Amount |
|---|---|---|
| Product Value (FOB) | — | $10,000 |
| Shipping & Insurance | — | $500 |
| Section 122 Global Tariff | 10% | $1,000 |
| Section 301 (China) | 25% | $2,500 |
| Section 232 (N/A) | 0% | $0 |
| Merchandise Processing Fee | 0.3464% | $36.37 |
| Total Duty | 35.4% | $3,536.37 |
| Landed Cost | — | $14,036.37 |
That $10,000 purchase actually costs $14,036 once it clears customs. Our tariff calculator computes this instantly for any country and product type.
Example: $25,000 of Steel from Germany
| Component | Rate | Amount |
|---|---|---|
| Product Value (FOB) | — | $25,000 |
| Shipping & Insurance | — | $2,000 |
| Section 122 Global Tariff | 10% | $2,500 |
| EU Reciprocal Tariff | 5% | $1,250 |
| Section 232 (Steel) | 50% | $12,500 |
| Merchandise Processing Fee | 0.3464% | $93.53 |
| Total Duty | 65.4% | $16,343.53 |
| Landed Cost | — | $43,343.53 |
The Supreme Court Tariff Ruling: What It Means
On February 20, 2026, the US Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unconstitutional. The Court held that IEEPA, which was designed for financial sanctions and asset freezes, does not grant the president authority to impose import tariffs.
The administration responded by shifting the legal basis for tariffs to Section 122 of the Trade Act of 1974, which explicitly authorizes temporary import surcharges to address trade imbalances. While the legal foundation changed, the practical impact on importers was minimal — tariff rates remained similar, and the cost burden on businesses and consumers continues.
Strategies for Managing Tariff Costs
1. Diversify Your Supply Chain
Moving production from high-tariff countries (China at 35%) to lower-tariff alternatives can significantly reduce costs. Vietnam (20%), India (18%), and especially USMCA partners (10%) offer lower combined rates. However, factor in potential changes — tariff rates can shift quickly.
2. Leverage Free Trade Agreements
Goods that qualify under USMCA (Canada, Mexico) or other free trade agreements face reduced or zero country-specific tariffs. Ensure your products meet the rules of origin requirements to take advantage of these preferential rates.
3. Review Your HTS Classification
The specific Harmonized Tariff Schedule (HTS) code assigned to your goods determines the base duty rate. Some products may qualify for lower rates under different classifications. Work with a licensed customs broker to ensure your goods are classified correctly and favorably.
4. Consider Foreign Trade Zones
Foreign Trade Zones (FTZs) allow you to defer, reduce, or eliminate tariffs on imported goods that are stored, assembled, or manufactured within the zone. If you re-export goods or use imported components in US-manufactured products, FTZs can provide significant savings.
5. Price Accordingly
Use our tariff calculator alongside the markup calculator and profit margin calculator to ensure your pricing accounts for the true landed cost of goods. Many businesses underestimate tariff impact and erode their margins.
Who Needs a Tariff Calculator?
- Amazon FBA sellers sourcing products from China, Vietnam, or India who need to factor duties into their profit calculations
- Manufacturers importing raw materials and components who need to estimate production costs
- Small businesses evaluating whether to source domestically or internationally
- E-commerce entrepreneurs comparing supplier costs across different countries
- Consumers purchasing goods internationally and wondering about customs charges
- Logistics and procurement professionals estimating total landed costs for budgeting
Tariff Rate Summary by Country (2026)
| Country | General Goods | Steel/Aluminum | Key Notes |
|---|---|---|---|
| China | 35% | 85% | Highest tariff rates; Section 301 |
| Vietnam | 20% | 70% | Growing alternative to China sourcing |
| India | 18% | 68% | Reciprocal tariff rate |
| EU (Germany, Italy, etc.) | 15% | 65% | Reciprocal tariff |
| Japan | 15% | 65% | Reciprocal tariff |
| South Korea | 15% | 65% | Reciprocal tariff |
| Canada (USMCA) | 10% | 60% | Lowest rate for qualifying goods |
| Mexico (USMCA) | 10% | 60% | Lowest rate for qualifying goods |
Rates include the Section 122 base tariff. Actual rates may vary by specific HTS code. Use our tariff calculator for personalized estimates.
Start Calculating Your Import Costs
Don't let tariff surprises eat into your margins. Use our free US tariff calculator to estimate duties by country and product type, see the full cost breakdown, and plan your sourcing strategy with confidence. Pair it with our inflation calculator to understand how rising costs compound over time, or our tax calculator to see your full tax picture.