Trump Tariffs 2026: The Complete Guide for Small Businesses
If you import goods into the United States, the tariff landscape has changed dramatically. Since February 2025, the Trump administration has imposed the highest import tariffs in nearly a century — and they're still evolving.
This guide breaks down exactly what you need to know: current rates, affected countries, and practical strategies to protect your margins.
⚡ March 2026 Update: Global tariff raised to 15% (up from 10%) this week. A federal court has also ordered tariff refunds on past IEEPA duties. See our detailed breakdown →
Current Tariff Rates (Updated March 7, 2026)
Global Baseline (All Countries)
- 15% Section 122 Temporary Import Surcharge — effective March 2026 (raised from 10%)
- Applies to virtually all imported goods not covered by a lower specific rate
- Expected duration: up to 150 days (statutory limit); possible renewal or trade deal reductions by August 2026
China
- Base rate: 15% Section 122 surcharge (replaces 20% IEEPA rate after court ruling)
- Section 301 tariffs: 7.5-25% on specific product categories
- Section 232 tariffs: 50% on steel, aluminum, copper
- Combined effective rate: 22.5-115% depending on product
- Pharmaceuticals: 100% tariff still in effect
Mexico
- 25% tariff on most Mexican imports
- USMCA-compliant goods may qualify for reduced rates — check your rules of origin
- Non-USMCA goods: 25% (higher than the new global 15% baseline)
Canada
- 25% tariff on most Canadian imports
- Energy imports: 10% (lower rate)
- USMCA-compliant goods may qualify for reduced rates
- USMCA-compliant goods may qualify for reduced rates
Steel & Aluminum (Global)
- 50% tariff on steel, aluminum, and copper from all countries (Section 232)
Automobiles (Global)
- 25% tariff on imported vehicles from most countries
Reciprocal Tariffs (Country-Specific)
Rates vary by country (10-41%), targeting nations with trade surpluses or high barriers to US exports.
How This Affects Your Business
The Math Is Simple — And Painful
If you import $100,000 worth of goods from China: - Before 2025: ~$7,500 in duties (average MFN rate) - After tariffs: $20,000-$45,000+ in duties
That's potentially tripling your landed cost on Chinese goods.
Who's Hit Hardest?
- Amazon/e-commerce sellers sourcing from China
- Small manufacturers importing components
- Retailers buying finished goods from Asia
- Construction companies using imported steel/aluminum
5 Strategies to Reduce Your Tariff Burden
1. Diversify Your Supply Chain
The most common move: shift sourcing from China to Vietnam, India, Thailand, or Mexico. But don't assume it's cheaper — run the numbers including tariff rates, shipping costs, quality differences, and lead times.
Use our free tariff calculator to compare costs across countries.
2. Check Free Trade Agreement Eligibility
USMCA (US-Mexico-Canada Agreement) can eliminate tariffs — but your goods must meet rules of origin. This means a certain percentage of the product must be made in North America.
3. Reclassify Your Products
Sometimes a product can legitimately be classified under a different HS code with a lower tariff rate. Work with a customs broker to review your classifications.
4. Use Foreign Trade Zones (FTZ)
FTZs allow you to defer, reduce, or eliminate duties on imported goods. If you're importing components for assembly, an FTZ can save thousands.
5. Apply for Tariff Exclusions
The US Trade Representative sometimes grants exclusions for specific products. Monitor USTR announcements and apply when windows open.
What's Coming Next?
The tariff situation remains volatile — and moved dramatically in March 2026: - Tariff refunds (NEW): Court ordered CBP to refund IEEPA duties. Refund filing system expected operational ~April 18, 2026. Contact your customs broker now to identify qualifying entries. - 15% global tariff: In effect as of this week. Run new landed cost calculations before your next purchase orders. - Legal challenges: Multiple lawsuits challenging both IEEPA and Section 122 authority are working through courts. Outcomes uncertain. - Trade deal window: Bessent says rates could drop within 5 months if bilateral deals close. Monitor for EU, Japan, South Korea announcements. - Potential escalation: Pharmaceutical, semiconductor imports face potential additional tariffs under Section 232 investigations.
Calculate Your Exact Tariff Impact
Stop guessing. TariffsCost calculates your exact tariff burden, compares alternative sourcing countries, and runs scenario analysis — so you can make data-driven decisions.
Free for China and Mexico analyses. Paid plans start at $29/month for full access.