We understand that changes in trade policy can raise questions about what’s ahead for your business. Our team is here to keep you informed and help you navigate updates to duties and tariffs. If you have questions about how these changes may affect your business, please reach out—we’re here to help.
On February 20, 2026, Section 122 duty tariffs replaced the IEEPA duty tariffs after the U.S. Supreme Court struck down the use of IEEPA to impose duties. Section 122 of the Trade Act (1974) has been applied to all imported goods, regardless of their value or country of origin. The Section 122 duty tariff expired on July 24, 2026, and was replaced with Sections 301 and 232.
Section 301
- 10% duty tariff for these economies:
- Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom
- 10-12.5% duty tariff, net of Most-Favored-Nation (MFN) rate for certain products of:
- European Union, Taiwan, Japan, Korea, and Switzerland that are not otherwise exempted.
- 12.5% duty tariff for all other investigated economies
Section 232
Already in use for steel, aluminum, autos, pharmaceuticals, drones, robotics, and wind turbines. New or expanded Section 232 measures could cover additional product categories.
Section 338
Beginning on September 8, 2026 Duty tariffs of 50% on certain Canadian products Alcohol-Scope-Modification-Annex-I.pdf imposed by Section 338 of the Tariff Act of 1930 and Section 232 of the Trade Expansion Act of 1962 on products manufactured or “Made in” Canada. In addition, some Canadian products are excluding from importation ANNEX-I-ALCOHOL.pdf. Canada implemented countermeasures consisting of surtaxes of 15%, 25%, or 50%, depending on the product classification List of products from the United States subject to counter-tariffs effective September 8, 2026 – Canada.ca. Additional information on Canada and be found here in our Shipping to Canada KC article.
Stacking Effect of Duty
The cumulative effect of the duty tariffs (stacking) is in continuation. Specific forthcoming duty rates will, as always, be listed in the Harmonized Tariff Schedule of the United States.
Stacking or Cumulative Effect
- General Duty Rate (always apply)
- Section 301 Duties (CN always apply)
- Section 232 Auto/Auto Parts/Medium-and heavy-duty vehicle (MHDVs) and MHDV parts (always apply. CA/MX if not eligible for USMCA)
- Section 232 Steel, Aluminum, Copper, Timber, Lumber, Semiconductors (N/A if Sec. 232 Auto/Auto Parts MHDV/MHDVPs apply)
- Section 338 additional duty tariffs on certain Canadian products
Frequently Asked Questions:
What is Informal Entry?
- An informal entry is a simplified customs clearance process for lower-value shipments of $1.00 to $2,500.00 USD with lower-risk goods that do not require a surety bond or power of attorney paperwork. With the elimination of de minimis, shipments valued up to $2,500.00 will enter into the U.S. via informal entry and may be subject to duties and taxes.
What is Formal Entry?
- A formal entry is the full customs clearance procedure required for higher-value imports of $2,500.01 or greater or goods subject to special import restrictions, quotas, or licensing. It involves a surety bond, detailed documentation, and power of attorney paperwork.
What is Tariff Stacking?
- Tariff stacking happens when multiple layers of import duties or taxes are applied to the same product, often because of overlapping trade rules, country-of-origin requirements, or changes in trade agreements.
Here are some additional resources to assist you:
- Section 301 Action on Brazil’s Unreasonable Acts, Policies, and Practices | U.S. Trade Representative
- USTR Takes Action in Forced Labor Section 301 Investigations | U.S. Trade Representative
- CSMS #69326983 – GUIDANCE: Section 301 Forced Labor Import Duties | U.S. Customs and Border Protection
- Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles | The White House
- MyGTS Tariff Code Lookup & Estimated Landed Cost Calculator | DHL Group
- How do I pay my US customs and duty taxes on imports? | Preferred Shipping
- DHL MyBill Overview | Preferred Shipping
- Disputing Duty and Tax Charges | Preferred Shipping
- Annex I- Country Duty Tariff Listingdhl.com/…obal-en/microsites/express/mygts
- Annex II-HTS Code Listing of Products Subject to the Duty Tariff
- Annex III- Chapter 99 HTS Codes
If you have questions, you can contact your sales representative or our Customer Service Team at customerservice@preferredship.com or 1-800-827-7987.
