Iceland Tariff Rates 2026: 10% on US Imports

Imports from Iceland carry a 10% base tariff — the standard-tier Section 301 forced-labor reciprocal rate that replaced the expired 10% Section 122 tariff on July 24, 2026 — plus MFN duties. Iceland is not an EU member, so it is not covered by the July 1, 2026 US-EU 15% ceiling, and it has no bilateral US free trade agreement. The critical exposure is Section 232: aluminum, Iceland's leading export to the US, is hit at 50%.

Iceland trades with the US as a member of EFTA and the European Economic Area rather than the EU, and there is no US-Iceland free trade agreement, so most goods clear at the 10% base reciprocal rate plus MFN duties. The economic relationship is concentrated in a handful of high-value categories — aluminum smelted with Iceland's abundant geothermal and hydro power, seafood, and specialized manufactured goods — rather than broad-based consumer trade. Iceland also hosts long-standing US security ties through NATO and the Keflavik agreement, which lends the commercial relationship unusual stability for its size.

Key Products Imported from Iceland

The largest US import from Iceland by value is aluminum and aluminum products, produced by energy-intensive smelters (Century Aluminum's Grundartangi, Rio Tinto's ISAL, Alcoa's Fjardaal) that run on cheap renewable power. Other significant categories include fresh and frozen seafood (cod, haddock, capelin, fish fillets), ferrosilicon and silicon metal, medical devices and prosthetics (Ossur), food-processing machinery (Marel), and geothermal skincare and wool goods.

Recent Changes

On July 24, 2026 the 10% Section 122 reciprocal tariff hit its 150-day limit and was replaced the same day by the Section 301 forced-labor reciprocal tariff; Iceland sits in the standard 10% tier, not the 46-economy 12.5% tier. Before the Feb 20, 2026 SCOTUS ruling that struck down the IEEPA reciprocal tariffs, Icelandic goods paid roughly 11%, so entries filed in that window may be eligible against the $166B IEEPA refund pool. As a non-EU state, Iceland gets no benefit from the EU-US 15% all-inclusive ceiling. Section 232 on aluminum (50% on articles wholly of aluminum, 25% on derivatives) was unaffected by the SCOTUS ruling and remains the dominant cost driver on Iceland's flagship export. De minimis is eliminated for all origins.

Tips for Importers

Because Iceland's biggest US-bound product is aluminum, classification under Section 232 is where landed cost is won or lost — confirm whether an article is wholly aluminum (50%) or a derivative (25%), remember Section 122/301 does not stack on the metal content of a Section 232 article, and evaluate duty drawback or FTZ admission if the metal is re-exported or processed. Importers who paid the ~11% IEEPA rate before Feb 20, 2026 should file for refunds from the IEEPA pool. There is no FTA certificate of origin to claim, so accurate HTS classification and MFN rate verification on seafood and machinery are the main levers.