Tariff rate definition
Tariffs rates are taxes on imports, charged as a fixed amount or a percentage of value.
A tariff is a tax on certain imports set by law. A tariff rate can be either a fixed amount (a “specific” tariff) or a percentage of value (an “ad valorem” tariff).
The government can set different tariff rates on different products based on the exporting country. When goods cross the US border, the importer pays the relevant tariff to Customs and Border Protection (CBP) based on the rate for the type of goods, their quantity or value, and which country they’re coming from.
Who sets tariff rates?
The US Constitution gives Congress the authority to set tariff rates — though some of that power is delegated to the president, who can adjust tariff rates based on trade, foreign policy, and national security interests. Because the US is part of the World Trade Organization (WTO) and is a party to other trade agreements, tariff decisions must also follow any rules and commitments laid out in those frameworks.
Where are tariff rates listed?
Tariff rates are listed in the Harmonized Tariff Schedule of the United States (HTS), which is maintained by the US International Trade Commission and administered at ports of entry by CBP. HTS lists classifications for all imports based on the international Harmonized System and is regularly updated to stay aligned with global trade standards.
