Frequently Asked Questions

Tariffs are taxes imposed by the U.S. government on imported goods. When a product enters the country, the importer pays the tariff to U.S. Customs and Border Protection. Unlike income taxes, tariffs are collected at the border — but the cost doesn't stop there. Research consistently shows that 40–76% of tariff costs are passed on to consumers through higher retail prices, with pass-through rates reaching 47–106% on durable goods like appliances and furniture. In practice, the tariff acts like an invisible sales tax that you pay every time you buy an imported product.

According to the Tax Foundation, current 2026 tariffs amount to an average additional cost of approximately $1,500 per U.S. household per year. The Yale Budget Lab estimates a median of $1,400, with a range from $900 for the lowest-income households to $3,900 for the highest-income households. These figures represent the full-year cost of tariffs enacted through early 2026, including the 10% global baseline, 25% auto tariffs, and China-specific Section 301 tariffs. Use our personal calculator to get your specific estimate.

The most heavily tariffed categories in 2026 include: Home Appliances (30% effective rate, 15% price increase), Automobiles (25% tariff — adding $3,000–$5,000 to new car prices), Clothing & Apparel (22.5% effective rate, 20% price increase), Furniture (18% effective rate), Electronics (15.2% effective rate, 8.5% price increase), and Food & Groceries (10% effective rate, 2.6% overall price increase, with specific imported items like coffee and olive oil facing higher individual duties). See our full category breakdown for detailed examples.

While both increase prices, tariffs and sales taxes work differently. Sales tax is collected at the point of purchase and applies to nearly all goods. Tariffs are collected at the border and only apply to imported goods — meaning domestically produced alternatives may not be affected. However, tariffs can also raise prices on domestically produced goods because they reduce foreign competition. Economists note that tariffs are regressive: lower-income households spend a larger share of their income on tariffed goods (clothing, food, electronics), so they bear a disproportionate burden.

The economic evidence is mixed. Tariffs can protect specific domestic industries and jobs — the steel and aluminum tariffs under Section 232 have benefited some domestic producers. However, tariffs also raise input costs for industries that use imported materials, such as auto manufacturing, construction, and electronics. For every job saved in a protected industry, multiple jobs may be at risk in downstream sectors. The Yale Budget Lab estimates that current tariffs slow U.S. GDP growth by 0.4–0.5 percentage points and could increase unemployment by 0.3–0.6 percentage points.

China faces the highest tariffs among major U.S. trading partners. In 2026, Chinese goods are subject to a combination of Section 301 tariffs (ranging from 7.5% to 100% depending on the product category) plus the new 10% global baseline tariff under Section 122. The effective tariff rate on Chinese goods reached 34.7% in late 2025. After a bilateral agreement in November 2025, some tariffs were reduced, but significant China-specific duties remain on electronics, clothing, furniture, and industrial goods. See our China tariff analysis page for a full breakdown.

Proponents of tariffs argue several legitimate economic and strategic goals. First, tariffs can protect domestic industries from foreign competitors who benefit from lower wages, currency manipulation, or government subsidies — helping preserve American manufacturing jobs. Second, tariffs can be a negotiating tool to pressure trading partners into fairer trade agreements. Third, in sectors like semiconductors, steel, and pharmaceuticals, tariffs may protect industries deemed critical to national security and supply chain resilience. Fourth, tariff revenue can offset other taxes. These arguments are contested among economists but represent a serious policy perspective held across the political spectrum.

Different tariff programs have different legal structures. The Section 122 baseline tariffs (10% global) are set to expire around July 24, 2026, unless renewed. Section 232 tariffs on steel and aluminum (recently increased to 50% effective June 4, 2026) have no automatic expiration. Section 301 tariffs on China also have no built-in expiration and have been in effect since 2018 through successive administrations. Any tariff can be renegotiated, suspended, or expanded by executive action — making the policy landscape subject to change.

Our personal tariff calculator uses data from the Tax Foundation, Yale Budget Lab, Penn Wharton Budget Model, and USDA Economic Research Service. We combine your household income, family size, state of residence, and spending patterns to estimate your annual tariff burden. The methodology applies category-specific tariff pass-through rates to estimated import spending in each category. State-level adjustments reflect differences in trade exposure and local economic conditions. All calculations assume current tariff rates as of March 2026.

Our data sources include: Tax Foundation Tariff Tracker (updated March 2026), Yale Budget Lab economic analysis on tariff distributional effects, Penn Wharton Budget Model effective tariff rate data, USDA Economic Research Service food price projections, U.S. Census Bureau Consumer Expenditure Survey, and U.S. International Trade Commission (USITC) commodity data. We update our figures when major policy changes occur or when new research is published.

Multiple legal challenges to 2025–2026 tariffs have been filed in federal courts. The administration has relied on IEEPA (International Emergency Economic Powers Act), Section 232, and Section 301 as legal authorities. Courts have issued various rulings on the scope of presidential tariff authority. The Court of International Trade and the Federal Circuit have been the primary venues. The legal landscape continues to evolve — check current news sources for the latest court decisions, as they could affect tariff rates and timelines.

There are several practical strategies: (1) Buy American-made products when available — domestically produced goods are not subject to import tariffs. (2) Shop secondhand for clothing, electronics, and furniture — used goods are not directly affected by tariffs. (3) Time major purchases — auto and appliance prices tend to rise as tariff pass-through builds into retail pricing over 6–12 months. (4) Buy generic or store brands in grocery categories where imported ingredients are less prominent. (5) For electronics, consider purchasing prior-generation models before tariff cost increases fully ripple through. Use our calculator to identify which spending categories drive the most tariff cost for your household.

Tariffs can indirectly affect housing costs through two channels. First, tariffs on steel, aluminum, and lumber raise construction costs for new homes, which can push up both purchase prices and rents over time. The National Association of Home Builders estimated that tariffs could add $7,500–$9,200 to the cost of a new home. Second, tariffs on appliances and fixtures raise renovation costs, which landlords may eventually pass to tenants. These effects are gradual and depend on local housing market conditions.

The United States-Mexico-Canada Agreement (USMCA) provides preferential tariff treatment for goods that meet its rules of origin — meaning the product must be substantially manufactured within North America. However, in 2025, the administration imposed 25% tariffs on Canadian and Mexican goods that do not qualify for USMCA treatment, citing national security and fentanyl concerns under Section 232. This has significantly increased costs for auto parts, agricultural products, and steel from both countries. USMCA-compliant goods generally remain exempt from these additional tariffs.

Even products labeled 'Made in USA' often contain imported components — steel, semiconductors, rare earth minerals, and electronic parts. Tariffs on these inputs raise the cost of domestic production. Additionally, when imported competition is reduced by tariffs, domestic producers sometimes raise their own prices. This is why tariffs on steel, for example, can raise the cost of American-made appliances, cars, and buildings. The full economic impact of tariffs ripples through complex supply chains.

The de minimis exemption historically allowed packages worth under $800 to enter the U.S. duty-free, enabling low-cost direct-to-consumer shipments from companies like Shein and Temu. In 2025, the administration eliminated this exemption for packages from China, requiring customs duties on all Chinese-origin shipments regardless of value. This change significantly raised prices on fast-fashion and electronics ordered directly from Chinese e-commerce platforms. The policy took effect in May 2025 and remains in force as of March 2026.

Small businesses often face a disproportionate burden from tariffs because they lack the negotiating power, supply chain flexibility, and capital reserves of large corporations. A small retailer cannot easily source from alternative countries on short notice. A small manufacturer using imported steel or aluminum faces immediate cost increases. Options for small businesses include applying for tariff exclusions through the USTR (though the process is complex), finding domestic suppliers, or absorbing short-term costs. The National Federation of Independent Business (NFIB) surveys consistently show tariffs as a significant concern for small business owners.

These are three different legal authorities used to impose tariffs: Section 232 (Trade Expansion Act of 1962) allows the President to impose tariffs on national security grounds. It has been used for steel (50% as of June 2026) and aluminum, and for automobiles (25%). Section 301 (Trade Act of 1974) targets countries engaging in unfair trade practices. Section 301 tariffs on China have been in place since 2018, covering hundreds of product categories at rates from 7.5% to 100%. Section 122 (Trade Act of 1974) allows the President to impose temporary tariffs of up to 15% for 150 days to address a balance of payments deficit. The current 10% global baseline tariff was imposed under this authority and is set to expire in July 2026 unless renewed.

Most major economic institutions project that current tariff levels will modestly increase inflation and slow economic growth, but not cause a recession by themselves. The Federal Reserve estimates tariffs add 0.3–0.5 percentage points to core PCE inflation in 2026. The IMF reduced its U.S. growth forecast by 0.4 points due to trade policy uncertainty. Yale Budget Lab projects a 0.5% GDP reduction. Whether these effects escalate into a deeper downturn depends on how trading partners respond (retaliation), how quickly supply chains adjust, and the overall macroeconomic environment. Our tool focuses on the direct consumer price impact, which is more predictable than broader macroeconomic effects.

Individual consumers cannot directly claim tariff refunds — the tariff is paid by the importer, not the end consumer. However, importers can file for tariff exclusions through the U.S. Trade Representative (USTR) for specific products not available domestically. If an exclusion is granted, the importer may request a refund (drawback) of duties paid. Businesses that export goods using imported inputs may also be eligible for duty drawback programs. For most households, the tariff cost is simply embedded in retail prices with no mechanism for individual recovery.

Using our personal tariff calculator is straightforward. Enter your annual household income, select your household size, and choose your state. Then set your spending level (low, medium, or high) for each major product category. Click 'Calculate My Tariff Cost' to see your personalized estimate broken down by category. The calculator shows your estimated annual tariff cost, the monthly equivalent, and what percentage of your income it represents. After calculating, you can explore your state's full tariff profile or see which product categories are driving the most cost.

TariffCheck is a non-partisan data tool. We present economic research from independent institutions — Tax Foundation, Yale Budget Lab, Penn Wharton Budget Model, and USDA — without advocating for or against any trade policy. We include both the costs and the arguments for tariffs. Our goal is to help Americans understand the economic data so they can form their own views. We do not take a position on whether current tariffs are good or bad policy — that is a complex question on which reasonable people disagree.