China Tariffs: How Much Will I Have to Pay?
- Laura Kerksiek
- May 17
- 4 min read
Updated: Jul 5
The Problem
A big challenge for US importers of China-origin parts and products right now is determining what their total tariff costs will be. Information online about tariffs often lacks technical depth and is broadly reported by the media. Trade negotiations between the US and China evolve daily. While it’s important to keep reading the news and review Executive Orders, USTR Press Releases and White House Articles and Fact Sheets about tariffs, these sources don’t really help you estimate your actual tariffs.
How can a U.S. importer estimate¹ total tariffs on shipments from China when regulations and rates are constantly changing?
The Solution
This infosheet. Regardless of which way the trade weathervane is pointing, this memo acts as a central reference for all known China tariff rates and policies from multiple websites into a centralized guide and worksheet.
Step 1: Determine the Tariff Code, Origin, and Value
There are a few tasks you need to perform before you can estimate your tariffs. To make sure you’re not over or underpaying tariffs thus risking an audit from US Customs, do these three things first:
Determine correct tariff codes for your physical items. Software and services imported digitally are not yet part of this craziness. Finding the right tariff code in one of the many sections of the harmonized tariff code can be arduous. So for starters, ask your AI assistant for the tariff code of your item as a baseline data point to consider. Then, manually review the US tariff code and explore blogs that provide guidance on how to classify an item to see if your AI assistant is correct. Be sure to check the latter chapters of the tariff code and General Notes to make sure you’re in the right chapter. For example, your item could be an electronic device so you pick Chapter 84 as the correct tariff chapter. But the purpose of that device is to test something internally at your company, so you should also review Chapter 90 in case that’s more applicable.
Note: It’s also recommended at this step to determine if your items are U.S. or foreign-origin goods re-importing back into your warehouse and if so, determine if you want to re-import those items under an import scheme in Chapter 98 of the HTS. If so, review all the associated requirements, other tariff exemptions, and risk otherwise you will be unprepared or out of compliance if a formal inquiry (e.g. CF28) from US Customs comes your way.
Determine country of origin for your items. Bear in mind these rules seem to be changing in real time. Some government websites on origin determination now post disclaimers that the website information has been “archived”, “may be out of date”, or is for “guidance” purposes only.
Determine customs value for your items. Same as above - bear in mind these rules also seem to be changing in real time.
Step 2: Estimate Your Tariff Stack Liability
Once you know the above information, find out which of the six possible tariffs you may be subject to:
The General Tariff
The Reciprocal Tariff
The IEEPA/Fentanyl Tariff
The Section 301 Tariffs
The Section 232 Tariffs
Antidumping Duty (AD) and Countervailing Duties (CVD)
Here is the China tariff stack flushed out to include applicable rates and products affected:
Step 3: Complete the Worksheet
Add your products, HTS codes, customs values, and tariff rates. Since these tariffs are ad valorem, you estimate the total tariff by multiplying the combined tariff rate by the product's value. Below is an example worksheet for you of interesting products and their total import tariff estimate.
¹ To determine exact tariff rates, provide your customs broker with a proforma commercial invoice detailing the product names, descriptions, HTS codes, values, and countries of origin. They will use U.S. Customs and Border Protection’s ACE system to calculate exact total tariff rate.
About the Author
Laura Kerksiek is an advisor at Tradewatch and has spent more than 15 years in trade compliance strategy and operations. Find her on LinkedIn
