Definition
What Are IEEPA Tariffs?
An IEEPA tariff is an additional US import duty imposed by executive order under the International Emergency Economic Powers Act. A 10% baseline applies to imports from most countries, with higher country-specific rates for selected trading partners. IEEPA stacks on top of the base HTS duty and any Section 301 tariff.
Where IEEPA tariffs come from
The International Emergency Economic Powers Act (50 USC §§ 1701–1708) gives the President broad authority to regulate international commerce during a declared national emergency. Historically used for sanctions and asset freezes, in 2025 it was applied to impose general import tariffs — a legally novel use that has been challenged in federal courts. Import obligations have continued during litigation.
The structure of the IEEPA tariff
The current regime sets a 10% baseline tariff on imports from most countries, with country-specific overrides for major trading partners. Rates apply globally rather than to a specific list of products, in contrast to Section 301's product-list approach. Rates are subject to executive modification and have been adjusted, paused, or negotiated multiple times since their initial 2025 announcement.
How IEEPA stacks with base duty and Section 301
IEEPA is additive. German-origin machinery at HTS 8457.10 with a 4.4% base rate carries 14.4% under IEEPA. Chinese-origin furniture at HTS 9403.60 — duty-free at the base rate but subject to a 25% Section 301 tariff — can exceed 35% combined when the IEEPA layer is applied. Build the full stack into landed cost models rather than treating IEEPA as a future-state risk.
USMCA goods and IEEPA
USMCA-qualifying goods from Canada and Mexico — those meeting the applicable rules of origin in the USMCA Annex — are generally exempt from or subject to reduced IEEPA tariffs. Non-qualifying goods routed through Canada or Mexico without genuine origin do not receive this treatment. Keep certificates of origin and supporting bill-of-materials records for the 5-year retention window.
Watching for rate changes
IEEPA tariffs are set by executive order and can change with little notice. Many importers have experienced shipments where the entry rate differed from the rate that had been planned. Tariff adjustment clauses in supply contracts and a watchlist process for sensitive HTS codes are practical risk-management tools.
Frequently asked questions
- Do IEEPA tariffs apply to all countries?
- The 10% baseline applies to imports from most countries. A subset of trading partners — those with which the US has identified specific trade concerns — face higher country-specific rates. USMCA-qualifying goods from Canada and Mexico are typically exempt or reduced.
- Is IEEPA the same as Section 301?
- No. Section 301 is a product-list tariff targeted at Chinese-origin goods under the Trade Act of 1974. IEEPA is a country-level tariff imposed under the International Emergency Economic Powers Act and applies broadly. They stack on top of each other for Chinese-origin goods on a Section 301 list.
- Are IEEPA tariffs eligible for duty drawback?
- Yes. Like other customs duties, IEEPA tariffs paid on imported goods that are later exported (or used in exported products) can be recovered at 99% under the standard duty drawback program, subject to the 5-year filing window.
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