US Tariffs on Railway Equipment from Mexico — 10% (2026)

Mexico is a significant source of railway equipment imports into the United States, with approximately $779B in total bilateral trade.

As of March 2026, railway equipment imports from Mexico face a base tariff rate of 10% under Section 122 of the Trade Act of 1974. This rate replaced the previous IEEPA reciprocal tariff following the Supreme Court's 6-3 ruling in V.O.S. Selections Inc. v. United States on February 20, 2026.

Under the Trade Act of 1974, Section 122 tariffs are limited to 150 days. The current 10% rate expires around July 24, 2026. Congressional action would be required to extend these tariffs beyond that date.

Railway Equipment (HTS Chapter 86) carry an average MFN duty rate of 2% in addition to the Section 122 tariff. No additional Section 232 or Section 301 surcharges apply to most products in this category from Mexico.

Mexico is party to the USMCA, which may provide preferential or duty-free access for qualifying railway equipment. Importers should verify rules of origin requirements to take advantage of preferential rates.

Key products in HTS Chapter 86 imported from Mexico include Locomotives, Railway passenger coaches, Railway freight cars, Railroad track and rails, Railway signaling equipment, and Shipping containers.