A tariff is a duty on imported goods. The U.S. importer of record pays it to Customs and Border Protection (CBP), but the importer is not necessarily the only one who bears the cost: exporters may cut prices, businesses may pass costs along, and consumers may pay more or buy less. There is no single tariff rate that applies to every U.S. import; the product’s classification, origin, entry date, and applicable trade measures all matter.
How does a tariff work?
U.S. customs authorities assess a tariff when covered merchandise enters the country. The amount depends on the product’s customs classification and the applicable rate or duty rule. The U.S. International Trade Commission (USITC) explains that transaction value—the price actually paid or payable in a sale—is the primary basis for customs value. Classification in the Harmonized Tariff Schedule (HTS) identifies tariff provisions that may apply. The USITC’s tariff-classification FAQ explains the system and how to investigate additional duties.
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Two common ways duties are calculated
| Duty type | How it is calculated | Illustration |
|---|---|---|
| Ad valorem | A percentage of the good’s customs value. | A 10% duty on $100 of customs value would be $10, before considering any other applicable charges. |
| Specific | A fixed amount per unit, weight, or another measure. | USTR gives $1 per 100 pounds as an example of a specific industrial tariff. |
The illustration shows the arithmetic, not a current rate for any product. The applicable rate and the basis on which it is calculated depend on the specific HTS provision and entry circumstances.
Classification and origin shape the result
The HTS classifies products for tariff purposes. As the USITC puts it, “The 4- and 6-digit provisions are part of the international Harmonized System, while the 8- and 10-digit provisions are unique to the United States.” Country of origin can affect whether a standard rate, trade-program preference, or additional measure applies. A broker may help prepare customs entries, but the importer remains responsible for compliance. USITC guidance also distinguishes ordinary tariff provisions from additional duties, including antidumping and countervailing duties.
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Who pays tariffs—and who bears the cost?
The importer of record remits the duty to CBP. That legal payment is different from the tariff’s economic incidence: the ultimate distribution of the cost after firms adjust prices, contracts, suppliers, and sales. The split depends on competition, the availability of substitutes, and the ability of each party to absorb or pass on costs.
Importers, exporters, and domestic businesses
If a foreign exporter keeps its price unchanged, the tariff increases the importer’s landed cost. If the exporter cuts its price to preserve sales, it absorbs some of the burden. In a New York Fed illustration, a 25% tariff on a $100 good costs the importer $25 if the exporter does not lower its price; a price cut by the exporter can shift part of that burden. In practice, the division varies by product and market.
Importers may absorb the added expense, raise prices, change suppliers, delay orders, or reduce purchases. Businesses that use imported goods as inputs can face higher costs even if they do not import directly. Domestic producers competing with affected imports may gain some protection, but the size and distribution of these effects are sector-specific. Retaliation by trading partners can also affect exporters. These are possible policy channels and market responses, not guaranteed outcomes. For context on the goals and trade-offs of U.S. tariff actions, see the Congressional Research Service’s tariff-actions FAQ.
What recent U.S. estimates say about incidence
Using data through November 2025, Federal Reserve Bank of New York authors estimated that U.S. importers bore 94% of tariff incidence from January through August 2025, 92% in September and October, and 86% in November. Their estimates indicate that exporters’ share increased late in the period, while importers still bore most of the measured burden. These figures describe the authors’ analysis of that period and sample; they are not a fixed rule for other products or later tariffs. Read the New York Fed’s analysis.
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How tariffs affect consumers and households
Businesses can pass some tariff costs into retail prices, but the effect on households is not limited to paying more for the same goods. People may switch to less expensive products, buy fewer items, or stop buying an affected product. Those responses can reduce household welfare even when a price increase is modest.
A 2026 Federal Reserve Board discussion paper, revised in August 2026, estimates retail price pass-through of about 0.15 when using realized tariff rates; under its benchmark tariff-exposure measure, it reports a larger price coefficient of 0.20. The paper also estimates that spending on affected goods fell about three times as much as prices rose, with quantity reductions concentrated entirely in non-essential categories. These are estimates from the paper’s analysis of the 2025 tariff episode, not universal multipliers for every tariff or household. The paper is research in circulation, and its findings do not necessarily represent the views of the Federal Reserve Board. See the paper and its qualifications.
Effects can differ by income and spending needs
The same paper estimates a disproportionate welfare burden for low-income households through regressive pass-through. It also finds that spending cuts in non-essential goods associated with precautionary reallocation were concentrated among middle-income households, while households at every income level that were worried about costs traded down within affected essential categories. These findings describe the households and tariff episode analyzed; they do not establish that all tariffs affect every income group in the same way.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why there is no single current U.S. tariff rate
A shipment’s rate can depend on its detailed HTS classification, country of origin, entry date, trade-program eligibility, exceptions, and additional measures. Tariff policy can change through legislation, executive actions, agency notices, exclusions, and trade arrangements. A headline rate for one product or country therefore cannot be treated as the rate for all imports.
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For example, an August 2026 presidential proclamation establishes Section 232 duties for specifically covered unmanned aircraft systems (UAS) and components, effective September 3, 2026. It sets 100% duties for covered UAS above 25 kilograms, thermal-imaging UAS, docking stations, and listed components, and 25% for certain covered UAS at or below 25 kilograms. Listed Annex III components have a later start date of February 9, 2027. The proclamation includes conditions, exceptions, and partner-origin caps; its rates apply only to covered classifications and circumstances, not to all drones or all imports. Read the proclamation’s scope and terms.
As a broad but different kind of snapshot, USTR’s Industrial Tariffs page reports that approximately 94% of U.S. merchandise imports by value are industrial goods, that the trade-weighted average import tariff rate on industrial goods is 2.0%, and that one-half of industrial goods imports enter duty-free. These are figures published on the USTR page accessed in 2026, not product-specific rates; they do not override additional duties or later changes. Check the USTR Industrial Tariffs page for its current figures. USTR’s presidential tariff-actions index lists multiple actions and amendments rather than one universal schedule.
How to find the tariff for a specific import
- Identify the product precisely. Gather its material, function, composition, and other characteristics that distinguish it for customs classification.
- Determine its HTS classification and country of origin. The product code and origin help establish which tariff provisions and trade-program rules may apply.
- Check the current HTS and related notices for the entry date. Look for the ordinary rate, preferences, additional duties, exclusions, and effective dates. The USITC directs users to HTS materials and agency notices to investigate additional duties; USTR’s actions index provides a policy overview.
- Confirm the rules for the actual shipment. Consult CBP or qualified customs advice where needed. A customs broker can assist with filing, but hiring one does not transfer the importer’s compliance responsibility.
USITC tariff reference tables may help with research, but the commission cautions that some compiled tables should not be treated as authoritative. USITC DataWeb provides trade data for analysis; it is not a substitute for determining the legal rate on a particular shipment.
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