As of January 2026, the Trump administration has implemented comprehensive tariff changes. Here are the key reciprocal tariff rates currently in effect:

Major Trading Partners:

• China: 20% (10% reciprocal + 10% fentanyl). Note: Will increase to 44% on November 10, 2026, and Section 301 tariffs (~25-30%) may still apply to many products.
• Mexico: 0% reciprocal rate (as of Oct 30, 2025). USMCA-compliant goods are duty-free.
• Canada: 35% reciprocal rate for non-USMCA goods. USMCA-compliant goods are duty-free (0%).
• India: 25%
• Brazil: 50% total (10% reciprocal + 40% policy tariff)
• European Union: 15%
• Japan: 15%
• United Kingdom: 10%
• Vietnam: 20%
• South Korea: 15%

High Tariff Countries (40%+):

• Laos: 40%
• Myanmar (Burma): 40%
• Syria: 41%
• Switzerland: 39%

Sector-Specific Tariffs (Add to Country Rates):

• Steel & Aluminum: +25%
• Copper products: +50%
• Automobiles: +25%
• Auto parts: +25%
• Lumber & timber: +10%

Important Notes:

• These are IEEPA reciprocal tariffs. Specific products may have different rates based on their HTS code.
• Tariffs can "stack" - country rate + sector-specific rate for the same product.
• USMCA-compliant goods from Canada/Mexico can enter duty-free if they meet origin requirements.
• The Supreme Court is currently reviewing the legality of IEEPA tariff authority.

For the most accurate information, consult the Harmonized Tariff Schedule of the United States (HTSUS) or speak with a customs broker.

Import duties are calculated based on the customs value of your goods. The basic formula is:

Additional fees that apply to most imports:

• Merchandise Processing Fee (MPF): 0.3464% of the customs value (minimum $27.98, maximum $538.40)
• Harbor Maintenance Fee (HMF): 0.125% of the customs value (for sea shipments only)

Important: Tariff Stacking

Multiple tariffs can apply to the same product. For example, Chinese steel might face:

• 10% reciprocal tariff (China baseline)
• 10% fentanyl tariff
• 25% steel tariff (Section 232)
• 25-30% Section 301 tariffs (if applicable)
• Total: 70-80%+

Your total landed cost will include the product cost, shipping, duties, and all additional fees.

The Harmonized Tariff Schedule (HTS) code is a standardized numerical method of classifying traded products. Every product imported into the US must be assigned an HTS code, which determines its specific duty rate.

HTS codes are 10 digits long in the US and organized hierarchically:

• First 6 digits: Internationally standardized (HS code)
• Digits 7-8: US-specific
• Digits 9-10: Statistical suffix

To find the correct HTS code for your product:

1. Visit the US International Trade Commission HTS Search
2. Search by product description or navigate through the HTS chapters
3. Consult with a customs broker or trade compliance expert for complex products

Why HTS Code Matters Even More in 2026:

• Section 232 tariffs apply only to specific product categories (steel, aluminum, copper, autos, lumber)
• Section 301 tariffs on China vary by HTS code (some products exempt, others 25-30%)
• USMCA eligibility depends on proper HTS classification and origin documentation

Using the correct HTS code is crucial, as incorrect classification can result in penalties, overpayment, or delays.

There are several legal strategies to reduce import duty costs in the 2026 tariff environment:

1. USMCA Compliance (Critical for Canada/Mexico): Ensure your products from Canada or Mexico meet USMCA origin requirements for duty-free treatment. This can save 25-35% in tariffs.
2. Country Sourcing Optimization: Consider sourcing from lower-tariff countries. For example:
   • Switch from China (20-50%+) to Vietnam (20%), Thailand (19%), or Malaysia (19%)
   • Consider USMCA suppliers (0% if compliant) vs. high-tariff alternatives
   • Mexico now has 0% reciprocal rate (as of Oct 2025)
3. Tariff Engineering: Modify products to classify them under HTS codes with lower duty rates (must comply with customs regulations)
4. First Sale Rule: Declare the price paid by the middleman to the manufacturer, rather than the price you paid to the middleman (requires proper documentation)
5. Free Trade Agreements: Leverage FTAs beyond USMCA where applicable for reduced or zero duties
6. Duty Drawback: Claim refunds on duties paid for imported goods that are later exported
7. Foreign Trade Zones (FTZs): Use FTZs to delay, reduce, or eliminate duty payments
8. Section 301 Exclusions: If importing from China, check if your product qualifies for any Section 301 exclusions (some extended until November 2026)
9. Tariff Stacking Awareness: Understand which sector-specific tariffs apply to avoid surprises. Steel, aluminum, copper, autos, and lumber face additional tariffs beyond country rates.

2026-Specific Strategies:

• Monitor USMCA Review: July 1, 2026 review could impact Canada/Mexico duty-free access
• Watch Supreme Court Ruling: IEEPA tariff legality under review - outcome could affect many rates
• Plan for China Rate Increase: China tariffs jump to 44% on November 10, 2026

Always consult with a customs broker or trade compliance expert before implementing these strategies to ensure they are appropriate for your situation and comply with all regulations.

The United States-Mexico-Canada Agreement (USMCA) allows qualifying goods from Canada and Mexico to enter the US duty-free. This is critically important given Canada's 35% tariff rate for non-compliant goods.

Key Requirements for USMCA Duty-Free Treatment:

• Origin Rules: Product must originate in Canada, Mexico, or the US according to USMCA rules of origin
• Documentation: Proper certification of origin must be completed
• Regional Value Content: Many products must meet minimum North American content requirements
• Tariff Shift Rules: Some products must undergo sufficient transformation within USMCA countries

Canada Example:

• USMCA-compliant goods: 0% duty
• Non-USMCA goods: 25% duty
• Non-USMCA energy/potash: 10% duty
• Reciprocal tariff: 35%

⚠️ Critical Alert: USMCA is scheduled for review on July 1, 2026. Current duty-free treatment could be modified or at risk.

For specific guidance on USMCA compliance for your products, consult with a customs broker or trade attorney.