US Customs Duty Rates

US customs duty rates are a vital aspect of the country’s trade policy, regulating the importation of goods and influencing the overall economy. These rates determine the taxes imposed on imported items, affecting pricing, competition, and compliance for businesses and consumers alike.

The U.S. Customs and Border Protection (CBP) agency administers these duties, which can vary widely based on the type of product, its origin, and specific trade agreements. Understanding these rates is essential for anyone involved in international trade or importation.

Category	Duty Rate (%)
Capital Goods	0% – 5%
Raw Materials	0%
Intermediate Goods	0% – 12%
Consumer Goods	0% – 25%
Motor Vehicles	2.5% – 25%
Alcoholic Beverages	0% – 10% (plus excise)
Tobacco Products	0% – 350% (plus excise)
Clothing and Footwear	0% – 32%
Electronics	0% – 6%

Key Points

General Rate: US customs duties typically range from 0% to 350%, depending on the product category and specifics.
Zero Duty: Certain raw materials and capital goods may be imported duty-free to encourage domestic manufacturing.
Excise Taxes: Alcohol and tobacco products incur additional excise taxes on top of customs duties, significantly increasing their cost.
Trade Agreements: The U.S. participates in various trade agreements that can affect customs duties, potentially reducing tariffs for goods from partner countries.
Value Added Tax (VAT): Unlike many countries, the U.S. does not impose a VAT on imports, but other local taxes may apply.
Customs Declarations: Importers must accurately declare their goods and pay applicable duties to ensure compliance with US laws.

Due to the dynamic nature of international trade, we always recommend importers stay updated on the latest regulations and duty rates by consulting the CBP here or a customs expert.

Trump Declares National Emergency on Trade

President Donald J. Trump has declared a national emergency over foreign trade practices, citing long-standing trade deficits that have weakened U.S. manufacturing and national security. Using the International Emergency Economic Powers Act (IEEPA) of 1977, Trump will impose a 10% tariff on all imports starting April 5, 2025, at 12:01 a.m. EDT. Countries with the largest trade deficits with the U.S. will face additional, individualized reciprocal tariffs starting April 9, 2025. These tariffs will stay in effect until the administration determines that the trade imbalance and non-reciprocal practices have been resolved or mitigated.

Key Exemptions

Some products will be excluded from the new tariffs. These include:

Items covered by 50 USC 1702(b)
Goods already under Section 232 tariffs (e.g., steel, autos)
Copper, pharmaceuticals, semiconductors, lumber
Potential future Section 232 goods
Bullion
Certain minerals and energy resources not found in the U.S.

Canada and Mexico

Existing fentanyl/migration-related IEEPA orders remain in effect. USMCA-compliant goods still receive a 0% tariff. Non-compliant goods face a 25% tariff, while non-compliant energy and potash are subject to a 10% tariff. If current IEEPA orders end, non-compliant goods would shift to a 12% tariff, but USMCA-compliant items would still get preferential treatment.

Justification for Tariffs

President Trump argues that the trade deficit threatens U.S. national security. The administration claims:

Persistent trade deficits hollowed out U.S. manufacturing
U.S. firms pay over $200 billion annually in VAT abroad
The economy loses up to $600 billion annually from counterfeit goods, pirated software, and trade secret theft
The 2024 trade deficit exceeded $1.2 trillion
The Biden administration reversed an agricultural trade surplus into a projected $49 billion deficit

America First Trade Policy

Trump’s “reciprocal tariff” plan is designed to restore fairness by matching tariffs with those imposed on U.S. goods. The administration emphasizes:

Supporting American jobs and industries
Strengthening supply chains
Reshoring manufacturing to protect national and economic security
Promoting “Made in America” as a priority

Manufacturing Revival Goals

U.S. manufacturing has declined from 28.4% of global output in 2001 to 17.4% in 2023. The administration sees this as a national security risk, especially in critical sectors like defense, pharmaceuticals, and technology. Supply chain disruptions during COVID-19 and recent global conflicts have exposed vulnerabilities. Trump’s strategy focuses on boosting domestic production, innovation, and restoring upstream capacity.

Addressing Unfair Trade Practices

The U.S. faces higher tariffs and non-tariff barriers from many trading partners. For example:

U.S. cars face a 10% duty in the EU and 70% in India, while the U.S. only charges 2.5%
Rice faces tariffs of 80% in India vs. 2.7% in the U.S.
U.S. exports of networking hardware face zero tariffs at home but up to 20% abroad
Beef, pork, poultry, and remanufactured goods face unjustified health standards and bans in countries like Argentina, South Africa, and the UK

The administration believes that correcting these imbalances will increase U.S. exports by billions and protect national interests. The goal is a fair, reciprocal trade environment that supports U.S. workers, reduces the deficit, and restores industrial strength.

Tools:

Browse Import Duty Rates By Country:

FAQs

What is the standard customs duty rate in the United States?

U.S. customs duty rates vary widely by product, generally ranging from 0% to 37.5%. Many essential items, like raw materials and certain electronics, have lower rates, while luxury items, textiles, and apparel typically incur higher duties.

Are there goods exempt from customs duty in the United States?

Yes, some goods are exempt from U.S. customs duties, especially personal items under a set value (e.g., gifts below $800). Additionally, items from countries with trade agreements, such as those under the USMCA, may qualify for duty exemptions.

What is the merchandise processing fee for U.S. imports?

In addition to customs duties, the U.S. applies a Merchandise Processing Fee (MPF) on most imports. The MPF rate is 0.3464% of the goods’ value, with a minimum of $27.23 and a maximum of $528.33 per shipment.

How are customs duties calculated in the United States?

Customs duties in the U.S. are calculated based on the transaction value, which is the cost of the goods as paid by the buyer, including any shipping and insurance costs to the U.S. port. The duty rate applies to this total value.

Do different products have different customs duty rates in the U.S.?

Yes, U.S. customs duty rates vary by product classification. Food, textiles, and automobiles generally face higher duty rates, while many industrial goods and some electronics have lower or zero rates. Classifying goods accurately is key to determining rates.

What are the customs duty rates for vehicles in the United States?

The U.S. imposes a 2.5% customs duty on most passenger cars and a higher 25% duty on light trucks. Motorcycles and certain luxury vehicles may also have specific rates based on engine size or other features.

Are there any regional trade agreements that affect U.S. customs duty rates?

Yes, the U.S. has trade agreements, such as the United States-Mexico-Canada Agreement (USMCA) and agreements with countries like Australia and South Korea, which reduce or eliminate duty rates on certain products imported from these regions.

What additional taxes or fees apply to imported goods in the United States?

In addition to customs duties, some goods face excise taxes, particularly alcohol, tobacco, and fuel. These items are subject to additional federal taxes, which vary by type and volume of goods imported.

What documents are required for customs clearance in the United States?

For U.S. customs clearance, importers need documents like the Commercial Invoice, Packing List, Bill of Lading, and certificates of origin (for goods eligible for trade agreement benefits). Providing accurate documentation helps ensure a smooth customs process.

How can I calculate the total cost of importing goods to the United States?

To estimate total import costs, consider the value of goods, customs duties, the MPF, excise taxes if applicable, and any brokerage fees. Accurately classifying products under the Harmonized Tariff Schedule (HTS) helps in calculating the correct duty rate.

Table of Contents