US Tariffs on Plastics & Rubber

What This Covers

The plastics and rubber surcharge covers plastic articles, rubber products, tires, synthetic materials, and polymer-based goods classified under HTS chapters 39-40. The base tariff rate averages around 4% for most plastics and rubber products. Section 301 tariffs of 25% on Chinese-origin plastics remain in full force after the Supreme Court ruling. Following the SCOTUS decision on February 20, 2026, all countries now face a uniform 10% Section 122 tariff (effective February 24, 2026, expiring ~July 24, 2026), replacing the old IEEPA reciprocal rates that had varied widely by country.

Most Affected Countries

China remains the most heavily burdened country, facing a 25% Section 301 surcharge plus the 10% Section 122 tariff on top of the 4% base rate, for combined duties approaching 39%. South Korea, Taiwan, and Thailand — significant plastics exporters that had faced different IEEPA reciprocal rates — now all compete on equal tariff footing at the 10% Section 122 rate. Saudi Arabia, which exports substantial volumes of petrochemical-derived plastics, similarly benefits from the uniform rate, which replaces its former country-specific IEEPA surcharge.

How Surcharges Stack

Chinese plastics face a 4% base rate plus the 25% Section 301 surcharge plus the 10% Section 122 tariff, for combined rates of approximately 39%. A container of plastic packaging materials from Thailand now faces the 4% base rate plus the 10% Section 122 tariff, totaling 14% — substantially less than under the old IEEPA regime where Thailand's reciprocal rate had pushed totals much higher. Canadian and Mexican plastics and rubber products enter duty-free under USMCA if they meet rules of origin, maintaining the best tariff position in the sector. The gap between Chinese plastics (39% combined) and non-China sources (14% combined) is now the key cost differential driving sourcing decisions. Section 122 expires around July 24, 2026, after which non-China plastics could face only the 4% base rate.

Sourcing Strategies

USMCA partners Canada and Mexico continue to offer the best tariff treatment for plastics, with duty-free access and proximity to the large North American petrochemical industry. The uniform 10% Section 122 rate has made it practical to source specialty plastics from whichever country offers the best product regardless of tariff differentials — Japan, Germany, South Korea, and Taiwan all now face the same rate. China remains the most expensive option at 39% combined duties, so importers of commodity plastics should accelerate diversification to non-China sources. Companies with long-term supply needs should factor in Section 122's July 2026 expiration date when negotiating contracts, as non-China tariff costs could drop significantly.