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Vehicles (not Railway) from Iceland Tariff: 50% (2026)

Tariff Rate Breakdown

10%

Section 122 Base

50%

Section 232

50%

Effective Rate

The 50% Section 232 rate applies to articles wholly of steel, aluminum, or copper (derivatives are 25%), on full customs value. The 10% Section 122 surcharge does not stack on the Section 232 metal content — it reaches only any non-metal portion — so a wholly-metal article’s effective rate is 50%, not 60%.

Among US trading partners for vehicles (not railway), Iceland plays a notable role, with approximately $2B in total bilateral trade.

Following the Supreme Court's landmark February 20, 2026 decision striking down IEEPA tariffs, imports of vehicles (not railway) from Iceland are now subject to a 10% base tariff under the Section 301 forced-labor tariff, which replaced the flat 10% Section 122 rate (in effect February 24 – July 24, 2026).

This 10% base surcharge is the Section 301 forced-labor tariff that replaced the flat 10% Section 122 rate when Section 122's 150-day authority expired on July 24, 2026. The final action covers roughly 60 economies under a two-tier 10%/12.5% structure — broader than the earlier 46-country proposal.

Products in this chapter may be subject to Section 232 metals tariffs. Since the April 6, 2026 restructuring these are two-tier: 50% on articles wholly of steel, aluminum, or copper and 25% on derivative articles, on the full customs value (doubled from 25% to 50% in June 2025). The base forced-labor surcharge does NOT stack on the Section 232 metal content, so a wholly-metal article runs about 50%, not 60%.

Key products in HTS Chapter 87 imported from Iceland include Passenger cars, Pickup trucks, SUVs, Motorcycles, Bicycles, and Auto parts.

Common Products in Chapter 87

Passenger carsPickup trucksSUVsMotorcyclesBicyclesAuto partsTrailersElectric vehiclesTires (mounted)Buses

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Frequently Asked Questions

What is the current tariff rate on vehicles (not railway) from Iceland?

As of mid-2026, vehicles (not railway) from Iceland face a base tariff of 10% under the Section 301 forced-labor tariff, which replaced the flat 10% Section 122 rate on July 24, 2026. Section 232 metals tariffs apply to steel/aluminum/copper articles — 50% on articles wholly of the metal and 25% on derivatives (full customs value); the base surcharge does not stack on the metal content. The effective rate is about 50% on the most-affected products.

Will the tariff on vehicles (not railway) from Iceland change?

The flat 10% Section 122 tariff expired July 24, 2026 and was replaced the same day by the Section 301 forced-labor tariff; Iceland's current 10% base surcharge is that two-tier (10%/12.5%) rate, covering roughly 60 economies. Section 232 tariffs on metals also have no set expiration. In August 2026, 25 states sued to block the forced-labor tariff, but CBP continues collecting it while the case proceeds.

How did the Supreme Court ruling affect vehicles (not railway) imports from Iceland?

The Supreme Court's February 20, 2026 ruling struck down IEEPA reciprocal tariffs as exceeding presidential authority. The president signed a replacement flat 10% tariff under Section 122 the same day, effective February 24; that rate expired July 24, 2026 and was replaced by the Section 301 forced-labor tariff (now 10% for Iceland).