The February 2026 Supreme Court ruling fundamentally changed the sourcing calculus. Under IEEPA, tariff rates varied wildly — Vietnam at 46%, Thailand at 36%, Taiwan at 32%, EU at 20%. The replacement Section 122 tariff applies a flat 10% to everyone. This leveling means sourcing decisions now depend more on Section 301 exposure (China only), Section 232 (metals/autos), AD/CVD risk, trade agreements, and non-tariff factors like shipping cost and lead time. This playbook compares the 15 most important sourcing countries across key product categories.
The New Tariff Landscape After SCOTUS
Before the SCOTUS ruling (pre-Feb 2026), IEEPA rates created massive differences: China 20% (10% reciprocal + 10% fentanyl), Vietnam 46%, Thailand 36%, Taiwan 32%, India 26%, South Korea 25%, EU 20%, Japan 24%. After the ruling, every country faces the same 10% Section 122 rate. The countries that benefited most: Vietnam dropped from 46% to 10% (36 percentage point savings). Cambodia dropped from 49% to 10% (39 points). Thailand dropped from 36% to 10% (26 points). Bangladesh dropped from 37% to 10% (27 points). Taiwan dropped from 32% to 10% (22 points). This compression means the tariff advantage of sourcing from low-IEEPA countries like the EU or Japan has largely disappeared. The new differentiators are Section 301 (China only), Section 232 (metals products from all countries), trade agreements, and AD/CVD risk.
Best Countries for Electronics
For electronics and electrical machinery, the key factor is Section 301 exposure. China faces 25% Section 301 on most electronics, bringing the total to 35%. Every other country faces only 10% Section 122. Best options: Vietnam (10% total, strong electronics manufacturing base, Samsung and Intel factories). Taiwan (10% total, premium semiconductor and electronics hub). South Korea (10% total, KORUS FTA eliminates MFN base duties on qualifying goods). Malaysia (10% total, growing electronics hub for semiconductors). Thailand (10% total, hard drive and electronics manufacturing). Mexico (10% Section 122, but USMCA eliminates MFN base duties for qualifying goods). The cost difference versus China is substantial: 10% vs 35% means $12,500 savings per $50,000 shipment.
Best Countries for Clothing and Apparel
Clothing is one of the categories where the SCOTUS ruling had the biggest impact. Vietnam (the #2 US apparel supplier) went from 46% to 10%. Bangladesh went from 37% to 10%. Cambodia went from 49% to 10%. Best options: Vietnam (10% total, largest non-China apparel supplier). Bangladesh (10% total, lowest labor costs, strong in basic garments). Cambodia (10% total, competitive on casual wear and footwear). India (10% total, strong in cotton garments and textiles). Mexico (10% Section 122, USMCA-qualifying products may get MFN duty elimination, fast shipping to US). China (35% total due to Section 301, increasingly uncompetitive for basic apparel but still dominant in technical fabrics). The apparel sourcing story is clear: Vietnam, Bangladesh, and Cambodia offer the same 10% rate with competitive labor costs.
Best Countries for Auto Parts
Auto parts have a unique tariff wrinkle: Section 232 imposes 25% on automobiles and certain auto parts. For general auto parts NOT covered by Section 232: all countries face 10% Section 122 only (China adds 25% Section 301). Mexico is the standout: USMCA-qualifying auto parts can eliminate MFN base duties, and Mexico's proximity means 2-5 day ground shipping versus 3-5 week ocean from Asia. For Section 232-covered auto parts: all countries face 35% (10% Section 122 + 25% Section 232). Mexico with USMCA: still faces 35% (Section 232 is not covered by USMCA). Best options: Mexico (10% for non-232 parts, USMCA benefits, fast shipping). Canada (10% for non-232 parts, USMCA benefits). Japan (10%, strong precision manufacturing). South Korea (10%, KORUS FTA). Germany (10%, premium quality).
Best Countries for Steel and Metals
Steel is uniformly expensive regardless of origin: Section 232 at 50% applies to ALL countries, and Section 122 adds 10% for 60% minimum. China adds Section 301 for 85%+. And AD/CVD duties can add 0-500% on top. There is no "cheap" country for steel imports. Every source faces at least 60%, and most face AD/CVD risk. Best options (lowest AD/CVD risk): Japan (60% base, relatively few active AD/CVD orders). Germany (60% base, limited AD/CVD). UK (60% base, limited AD/CVD). Higher-risk sources: China (85%+ base, AD/CVD rates up to 522%). Turkey (60% base, rebar AD/CVD up to 155%). India (60% base, pipe/tube AD/CVD up to 118%). Brazil (60% base, AD/CVD up to 84%). For steel, the sourcing decision is less about tariff rates and more about AD/CVD exposure and product quality.
Countries with Trade Agreement Advantages
Several US trade agreements can eliminate MFN base duties on qualifying goods, providing an edge on top of the flat 10% Section 122 rate. USMCA (Canada, Mexico): Eliminates MFN duties for qualifying goods. Most valuable for auto parts, food, and manufactured goods. KORUS (South Korea): Eliminates MFN duties on most goods. Valuable for electronics, auto parts, and chemicals. CAFTA-DR (Costa Rica, El Salvador, Guatemala, Honduras, Dominican Republic): Duty-free on qualifying goods. Important for apparel and agricultural products. US-Australia FTA: Eliminates MFN duties on most goods. US-Singapore FTA, US-Chile FTA, US-Colombia FTA, US-Peru FTA, US-Israel FTA: All provide duty elimination on qualifying goods. The trade agreement benefit is the elimination of MFN base duties (typically 0-20%) — these savings come on top of the 10% Section 122 rate, which applies regardless of trade agreements.
AD/CVD Risk by Country
Beyond tariff rates, AD/CVD risk should factor into sourcing decisions. Highest risk: China — by far the most AD/CVD orders, covering steel, aluminum, solar panels, tires, furniture, shrimp, and many other products. Moderate risk: Vietnam (steel, shrimp), India (steel, shrimp), South Korea (steel), Turkey (steel), Brazil (steel), Indonesia (steel), Thailand (shrimp). Lower risk: Japan, Taiwan, Germany, UK, Australia, Mexico, Canada (except softwood lumber). AD/CVD orders are product-specific, so "risk" means there are more active orders — your specific product may not be covered. Always check the ITC database before assuming AD/CVD applies or doesn't apply.
Key Takeaway
The SCOTUS ruling equalized tariff rates across most countries at 10%, making Section 301 (China only), Section 232 (metals/autos), AD/CVD exposure, trade agreements, and logistics the real differentiators for sourcing decisions. For non-metal, non-China products, nearly every country faces the same 10% rate — so supplier capability, quality, lead time, and shipping cost matter more than ever. Use the comparison tool below to model your specific product across countries.