US Tariffs on Chemicals

What This Covers

The chemicals surcharge covers industrial chemicals, organic compounds, specialty chemicals, and related products classified under HTS chapters 28-38. The base tariff rate for chemicals averages approximately 3%, keeping raw material and intermediate inputs relatively affordable for US manufacturing. Section 301 tariffs of 25% on Chinese-origin chemicals remain in full force after the Supreme Court ruling. The 10% Section 122 tariff (effective February 24, 2026, expiring ~July 24, 2026) now applies uniformly to all chemical-exporting countries, replacing the old IEEPA reciprocal rates.

Most Affected Countries

China remains the most penalized chemical exporter, facing the 25% Section 301 surcharge plus the 10% Section 122 tariff on top of the 3% base rate, for combined duties of approximately 38%. Germany, the second-largest chemical exporter to the US, now faces only the 10% Section 122 rate — a reduction from the EU's former 20% IEEPA reciprocal rate — making German specialty chemicals, pharmaceutical intermediates, and industrial solvents more affordable. Japan, India, and the United Kingdom all now face the same 10% Section 122 rate, eliminating the old country-by-country tariff differentials that had complicated procurement across the chemical supply chain.

How Surcharges Stack

Chinese chemicals face a 3% base rate plus the 25% Section 301 surcharge plus the 10% Section 122 tariff, for combined rates of approximately 38%. A specialty chemical from Germany now faces the 3% base rate plus the 10% Section 122 tariff, totaling 13% — a meaningful reduction from the old regime where the EU's 20% IEEPA reciprocal rate had pushed the total to approximately 23%. Japanese, Indian, and British chemicals all face the same 13% combined rate, creating a level playing field among non-China sources for the first time since reciprocal tariffs were introduced. Canadian and Mexican chemicals enter duty-free under USMCA if they meet rules of origin, giving North American producers a 13-percentage-point advantage over overseas competitors. The Section 122 tariff expires around July 24, 2026, which could reduce non-China chemical imports to the 3% base rate alone.

Sourcing Strategies

USMCA partners Canada and Mexico continue to offer duty-free treatment and host substantial chemical manufacturing capacity, making them the optimal primary sources. The uniform 10% Section 122 rate has simplified procurement from Germany, Japan, South Korea, and other major chemical-producing nations — all now face identical tariff treatment, allowing buyers to optimize for product specifications, supply reliability, and pricing. China at 38% combined duties remains the most expensive source, and importers should continue diversifying away from Chinese chemicals where alternatives exist. With Section 122's temporary nature (expiring ~July 2026), chemical companies negotiating annual supply contracts should build in tariff adjustment clauses to capture potential cost reductions if the surcharge lapses without replacement.