Understanding the different types of U.S. import tariffs

For anyone importing goods into the United States, one of the biggest questions is: What will it cost to bring my goods into the country?

While shipping and insurance costs are predictable, U.S. import tariffs can be tricky.

That’s because they are not usually a flat fee or a single tax rate.

Instead, tariffs come in various forms, and the type that applies to your shipment can significantly affect your import calculations.

Understanding the different types of tariffs is a crucial first step in calculating your landed costs, pricing goods, and avoiding unexpected surprises. Read on to learn more.

What are import tariffs?

Import tariffs, also known as customs duties, are taxes imposed by the U.S. government on imported goods.

While many U.S. tariffs are calculated as a percentage of the goods’ value (ad valorem), some may instead, or additionally, be based on weight, quantity, or unit measures.

In special cases, the U.S. may impose additional duties or trade remedy tariffs to counter unfair trade practices or protect domestic industries.

For importers, tariffs are a key component of the landed cost of goods, which is the total price you’ll pay to get products from overseas to your warehouse or customers.

Unlike a sales tax or income tax, tariffs vary depending on the product’s classification in the Harmonized Tariff Schedule of the United States (HTSUS) and, in some cases, country of origin. 

Types of U.S. import tariffs

There are several types of U.S. import tariffs, each with its own set of rules.

Ad valorem tariffs

The most common type of U.S. import tariff is the ad valorem duty.

“Ad valorem” means “according to value,” and that’s exactly how this tariff works: it’s calculated as a percentage of the total value of your shipment.

Ad valorem tariffs are straightforward, but they put extra importance on using the correct customs value.

Specific tariffs

Instead of being tied to value, specific duties are charged based on quantity, weight, or volume.

This kind of tariff is commonly applied to agricultural goods, commodities, or other raw materials. 

Compound tariffs

Sometimes, U.S. law combines both ad valorem and specific tariffs. That means you’ll pay a percentage of the product’s value plus a fixed amount per unit.

Compound tariffs are less common than other tariffs, but they can significantly increase landed costs, especially on high-volume imports.

Special tariffs and surcharges

Beyond the standard duty rates, importers also need to watch for special U.S. import tariffs that are applied for trade enforcement, economic, or security reasons.

These include:

• Section 301 tariffs: Additional duties, applied most commonly on Chinese goods, in response to unfair trade practices such as intellectual property violations or discriminatory policies.
• Section 232 tariffs: Duties imposed to protect national security interests in key industries, such as steel and aluminum.
• Anti-dumping and countervailing duties (AD/CVD): Duties applied when foreign goods are sold below fair market value or benefit from unfair subsidies.
• Import excise taxes: Although they are not tariffs in the strict sense, they are still applied to imports and collected by CBP at the time of entry on behalf of the IRS.
  
• IEEPA tariffs: Special duties that may be imposed under the International Emergency Economic Powers Act (IEEPA), usually tied to national emergency declarations.
• Reciprocal tariffs: Extra duties the U.S. may apply in response to another country’s trade restrictions. These are often temporary and targeted.

How Cole International can help

If you import goods into the U.S., your costs aren’t limited to what you pay your supplier or carrier. Tariffs, surcharges, and changing regulations add layers of complexity and, in some cases, unexpected charges. That’s where we come in.

At Cole International, we offer customs brokerage and trade consulting services to help U.S. importers navigate changing regulations with confidence and ensure compliance. 

Our team works with importers every day to:

• Identify the correct tariff classification for their products
• Check for special duties or surcharges that may apply
• Keep them informed about tariff changes that may impact their business

We don’t believe in guesswork. We get it right the first time.

If you want to navigate U.S. import tariffs with confidence, please reach out to one of our trade professionals to walk you through tariff classification, duties, and compliance.