Machinery & Equipment Tariff Rates 2026: US Import Duties by Country & HTS Code

What This Covers

The machinery and equipment surcharge covers industrial machines, pumps, valves, compressors, and mechanical equipment classified under HTS chapter 84. The base tariff rate for machinery averages a relatively low 2.5%, reflecting US policy of keeping capital equipment affordable to support domestic manufacturing. Section 301 tariffs of 25% on Chinese-origin machinery remain fully in effect after the Supreme Court ruling. All other machinery-exporting countries now face a uniform 10% Section 122 tariff (effective February 24, 2026; scheduled to sunset ~July 24, 2026), replacing the variable IEEPA reciprocal rates. This Section 122 tariff is legally contested: the Court of International Trade ruled it unlawful on May 7, 2026, but the Federal Circuit stayed that injunction on June 11, 2026, so CBP continues collecting the 10% pending appeal.

Most Affected Countries

China remains the most burdened country, with the 25% Section 301 surcharge plus the 10% Section 122 tariff creating combined rates approaching 37.5% on the 2.5% base — still the highest tariff facing any major machinery exporter. Japan pays the 10% Section 122 rate, while Germany — the other machinery superpower — moved to the EU-US trade deal's flat 15% all-inclusive ceiling on July 1, 2026, creating a modest 2.5-point spread between the two on a typical machine. South Korea and Taiwan benefit from the uniform 10% Section 122 rate, and Italy trades at the EU's 15% deal rate alongside Germany.

How Surcharges Stack

Chinese machinery faces the 2.5% base rate plus the 25% Section 301 surcharge plus the 10% Section 122 tariff, for a combined rate of approximately 37.5%. A $100,000 CNC machine from Germany now pays the EU deal's flat 15% all-inclusive — $15,000, with no MFN stacking — while an identical machine from Japan or South Korea pays the 2.5% base rate plus the 10% Section 122 tariff, totaling 12.5% or about $12,500. Both are far simpler than the old IEEPA regime where a German machine and a Japanese machine faced very different reciprocal rates. USMCA-compliant machinery from Mexico and Canada enters duty-free, providing a clear cost incentive for North American sourcing. The Section 122 tariff is scheduled to sunset July 24, 2026, after which non-China, non-EU machinery could revert to the low 2.5% base rate alone — unless USTR's proposed 12.5% Section 301 duties on 46 countries (including Japan and South Korea) take its place.

Sourcing Strategies

With Japanese and Korean machinery at 12.5% and German or Italian machinery at the EU deal's flat 15%, tariff differentials among quality suppliers are small enough that buyers can choose based on technical capability, price, and service rather than tariff arbitrage. Chinese machinery still carries a significant tariff premium due to Section 301, so importers of Chinese equipment should evaluate whether comparable machines from Germany, Japan, or South Korea offer better total landed costs. USMCA sourcing from Mexico and Canada eliminates tariffs entirely for qualifying equipment and reduces lead times. Section 122's July 24, 2026 sunset (and USTR's proposed 12.5% Section 301 replacement for 46 countries) affects Japanese and Korean pricing after July; the EU's 15% deal rate has no expiry.