Comprehensive Guide to International Tariffs
Everything you need to know about tariffs, duties, and international trade fees
What Are Tariffs?
Tariffs are taxes imposed by governments on imported goods. These taxes are typically calculated as a percentage of the value of the imported item. Tariffs serve multiple purposes: they can protect domestic industries from foreign competition, raise revenue for the government, or act as political tools in international relations. Different countries have different tariff structures, rates, and exemptions.
Types of Tariffs
Ad Valorem Tariffs
The most common type of tariff, calculated as a percentage of the value of the imported good. For example, a 5% ad valorem tariff on a $1000 item would result in a $50 tariff.
Specific Tariffs
Fixed fees based on the quantity of the imported good, regardless of value. For example, $1 per pound or $15 per unit.
Compound Tariffs
A combination of ad valorem and specific tariffs. For example, 5% of the value plus $1 per pound.
Preferential Tariffs
Reduced tariff rates applied to imports from countries with which there are trade agreements or special relationships.
How Tariffs Impact International Trade
Tariffs directly affect the cost of imported goods, potentially making them more expensive than domestic alternatives. This can influence consumer choices, supply chains, manufacturing decisions, and international trade flows. High tariffs can lead to trade barriers, while low or zero tariffs facilitate free trade. Businesses engaged in international trade must factor tariff costs into their pricing strategies and market entry decisions.
Calculating Import Tariffs
- Determine the correct Harmonized Tariff Schedule (HTS) code for your product
- Research the applicable tariff rate for that HTS code for your specific country of import
- Calculate the customs value of your goods (typically the transaction value)
- Apply the tariff rate to the customs value
- Consider additional duties, taxes, and fees that may apply
Our tariff calculator simplifies this process by automatically calculating estimated tariffs based on your product information and trade route.
Major Tariff Systems Worldwide
Harmonized System (HS)
An international standardized system of names and numbers for classifying traded products, used by over 200 countries.
United States - Harmonized Tariff Schedule (HTS)
The U.S. version of the Harmonized System, which includes additional country-specific subdivisions.
China - Customs Import and Export Tariff
China's tariff schedule based on the HS, with specific provisions for various trade relationships.
European Union - TARIC
The integrated Tariff of the European Union, a multilingual database covering all measures related to EU customs tariff, commercial and agricultural legislation.