Reciprocal Tariffs: From Liberation Day to the Supreme Court — and What Each Country Pays Now
On April 2, 2025 — "Liberation Day" — President Trump imposed country-specific reciprocal tariffs on virtually every US trading partner, with China peaking at 145%. On February 20, 2026 the Supreme Court struck the entire stack down. A flat 10% Section 122 surcharge bridged the gap until 24 July 2026; since then a forced-labor Section 301 tariff of 10–12.5% applies by country. Here's the full story and what it means for your imports now.
Current status — September 2026
The reciprocal tariffs are dead law — struck down by the Supreme Court February 20, 2026. The Section 122 surcharge that replaced them expired on 24 July 2026. Goods from 60 economies now pay a forced-labor Section 301 tariff of 10% or 12.5% (USMCA-qualifying Canada/Mexico goods and Section 232 goods exempt). It is being challenged by 25 states in the Court of International Trade; CBP is collecting it meanwhile.
India, UK, Indonesia
10%
forced-labor tariff
China, Vietnam
12.5%
was 145% / 46% pre-ruling
USMCA countries
0%
Canada/Mexico qualifying
Struck down
Feb 20
SCOTUS ruling 2026
The Full Timeline: Liberation Day to Now
April 2, 2025
Liberation Day
President Trump signs executive orders imposing country-specific 'reciprocal tariffs' citing decades of trade imbalances. China: +34%. EU: +20%. Vietnam: +46%. Japan: +24%. Effective April 9.
April 4, 2025
China Retaliates
China announces 34% retaliatory tariffs on US goods. Trade war escalation begins. Markets fall sharply.
April 9, 2025
90-Day Pause
Trump announces a 90-day pause for most countries, reducing all reciprocal tariffs to a 10% baseline. China is explicitly excluded — its rate is raised to 84% in response to retaliation.
April 11, 2025
China Rate: 145%
After China raises its retaliatory rate to 84%, the US raises China's tariff to 145% combined (34% reciprocal + 7.5–25% §301 + additional surcharges). The highest US tariff rate in a century.
May 12, 2025
Geneva Deal — US-China Pause
US and China reach a 90-day agreement in Geneva. US reduces China's reciprocal tariff from 145% to ~30% combined. China reduces from 125% to ~10%. Both sides agree to further talks.
Feb 20, 2026
SCOTUS Strikes Down IEEPA Tariffs
The Supreme Court rules the entire IEEPA tariff stack — reciprocal and fentanyl tariffs alike — exceeded the President's statutory authority. Every Liberation Day rate becomes dead law overnight.
Feb 24, 2026
Section 122 Replacement: Flat 10%
A flat 10% import surcharge under Section 122 of the Trade Act of 1974 takes effect on nearly all origins. Section 232-covered goods exempt; USMCA-qualifying Canada/Mexico goods not charged. Statutory limit: 150 days.
May 7, 2026
CIT Rules Section 122 Invalid
The Court of International Trade holds the Section 122 proclamation invalid — but the injunction covers only the three plaintiff importers. The government appeals to the Federal Circuit; the 10% surcharge keeps being collected from everyone else.
Jul 24, 2026
Section 122 Expires — Forced-Labor Tariff Starts
The 150-day limit runs out and Congress does not extend it. The same minute USTR's forced-labor Section 301 duties take effect on 60 economies: 12.5% for China, Vietnam, Thailand and 35 others; 10% for 17 including India, Indonesia, the UK, Canada and Mexico; 10% combined with MFN for the EU and Taiwan; 12.5% combined for Japan, Korea and Switzerland.
Aug 3, 2026
25 States Sue Over the Forced-Labor Tariff
State attorneys general challenge the new tariff in the Court of International Trade. CBP keeps collecting it while the case runs.
Country Rates: Liberation Day vs. Today's Forced-Labor Tariff
| Country | Apr 2 Rate | Paused Rate | Current |
|---|---|---|---|
| 🇨🇳China | 34% | No — escalated | 12.5%* |
| 🇪🇺EU | 20% | 10% baseline | 10%† |
| 🇻🇳Vietnam | 46% | 10% baseline | 12.5% |
| 🇮🇳India | 26% | 10% baseline | 10% |
| 🇯🇵Japan | 24% | 10% baseline | 12.5%† |
| 🇰🇷South Korea | 25% | 10% baseline | 12.5%† |
| 🇹🇼Taiwan | 32% | 10% baseline | 10%† |
| 🇹🇭Thailand | 36% | 10% baseline | 12.5% |
| 🇨🇦Canada | 25% | USMCA exempt | 0%/10%‡ |
| 🇲🇽Mexico | 25% | USMCA exempt | 0%/10%‡ |
| 🇬🇧UK | 10% | 10% baseline | 10% |
| 🇦🇺Australia | 10% | 10% baseline | 12.5% |
* China: 12.5% forced-labor tariff since 24 July 2026, plus the Section 301 list rate (0–100% by product). Most Chinese goods: 20–40% before MFN.
† Combined with MFN: the forced-labor duty only tops the MFN rate up to 10% (EU, Taiwan) or 12.5% (Japan, Korea, Switzerland). §232 goods are exempt from it.
‡ Canada/Mexico: USMCA-qualifying goods 0%; non-USMCA goods pay the 10% forced-labor tariff (the old 25% IEEPA orders were struck down). Canadian goods on a Section 338 list pay an extra 50% either way.
What This Means for US Importers
China's duty burden dropped sharply — but didn't vanish
Chinese goods still carry the highest stack of any major sourcing country: the §301 list rate + the 12.5% forced-labor tariff + MFN. That is a fraction of the 145% peak, but the July switch made China, Vietnam and Thailand 2.5 points dearer while India, Indonesia and Malaysia stayed at 10% — re-run your sourcing comparisons.
You may be owed IEEPA refunds
If you paid reciprocal or fentanyl IEEPA tariffs in 2025–early 2026, the Supreme Court ruling opened the door to refunds via post-summary corrections and protests. Deadlines are strict — review your entry data with your broker now.
USMCA is still the best deal in the world
Mexico and Canada at 0% under USMCA are hard to beat — USMCA-qualifying goods don't pay the forced-labor tariff at all. If you can certify USMCA origin, you avoid the 10–12.5% that most other origins pay (Section 232 metals excepted). Check Canadian products first: 666 tariff lines pay an extra 50% under Section 338 even when they qualify.
Country of origin matters again — and some countries pay nothing
Unlike the flat Section 122 surcharge, the forced-labor tariff varies by origin: 12.5%, 10%, a combined floor, or nothing for economies outside the 60. Section 232 goods and 863 listed tariff lines are exempt — including computers, phones, network gear, chips, energy and coffee. Check your 8-digit code.
Reciprocal Tariffs — Frequently Asked Questions
Reciprocal tariffs (also called 'mirror tariffs') are tariffs set to match the rate a foreign country charges on US exports. The Trump administration argued that countries like Vietnam (which charges ~20% on many US goods) were treating the US unfairly, so the US should charge the same rate back. The April 2, 2025 executive orders set country-specific rates based on a formula approximating trade imbalances.
Liberation Day is the name the Trump administration used for April 2, 2025 — the day President Trump signed executive orders imposing country-specific reciprocal tariffs on virtually all US trading partners. The announcement included rates ranging from 10% (Australia, UK) to 46% (Vietnam) and 34% (China). It was described as 'liberating' the US from decades of unfair trade.
No. On February 20, 2026 the US Supreme Court struck down the entire IEEPA tariff stack — the reciprocal tariffs, the 10% pause baseline, and the fentanyl tariffs. A flat 10% surcharge under Section 122 of the Trade Act of 1974 replaced them from 24 February 2026 until it expired on 24 July 2026. Since then, a forced-labor Section 301 tariff of 10% or 12.5% applies to goods from 60 economies — a different law with different rates by country.
Chinese goods now pay: MFN duty + their Section 301 list rate (25% on Lists 1–3, 7.5% on List 4A, 0% on the suspended List 4B, up to 100% for some four-year-review products) + the 12.5% forced-labor tariff. Goods under Section 232 (steel, aluminum, copper, autos) pay that instead of the 12.5%. The 145% IEEPA peak and the ~30% post-Geneva rate are both dead law. Computers, phones, network gear and chips are exempt from the 12.5% (HTSUS U.S. note 52), so laptops pay 0%.
The old 25% IEEPA orders on Canada and Mexico (Executive Orders 14194 and 14197) fell with the Supreme Court ruling. Under today's forced-labor tariff, USMCA-qualifying goods from Canada and Mexico pay nothing extra; non-qualifying goods pay 10%. Section 232 still applies to Canadian and Mexican steel, aluminum and copper at 50%. Canada has one more layer: since 22 August 2026, 666 tariff lines of Canadian goods pay an extra 50% under Section 338 whether or not they qualify, and 68 of them have been banned from import since 29 September. Certifying USMCA origin is worth 10 points on most cross-border shipments.
Total duty = FOB value × (MFN rate + forced-labor tariff + China Section 301 list rate if Chinese). Goods under Section 232 pay the 232 rate instead of the forced-labor tariff. For the EU and Taiwan the forced-labor part is only the gap between MFN and 10%; for Japan, Korea and Switzerland the gap up to 12.5%. Add MPF (0.3464%, min $34.58 / max $670.86) and, for ocean freight, HMF (0.125%). The free calculator does this for your exact HS code and origin.
Country-Specific Tariff Guides
China Tariffs 2026
§301 + 12.5%
Canada Tariffs 2026
USMCA 0%, +50% on listed goods
Mexico Tariffs 2026
USMCA 0%, else 10%
India Tariffs 2026
10% forced-labor tariff
EU Tariffs 2026
10% combined with MFN
Vietnam Tariffs 2026
12.5% (46% dead)
Japan Tariffs 2026
12.5% combined + §232 autos
South Korea Tariffs 2026
12.5% combined, KORUS
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Quick Reference — 2026
- Forced-labor tariff: 10% or 12.5% by origin
- China: 12.5% + §301 list rate
- USMCA (Canada/Mexico): 0%
- Canada, Section 338 lists: +50%
- §232 steel, aluminum, copper: 50%
- §232 autos: 25% (EU/JP/KR 15% all-in)
- §232 goods: forced-labor-exempt
- Section 122 expired Jul 24, 2026
- MPF: 0.3464%, min $34.58 / max $670.86