IEEPA Tariffs Explained: Emergency Trade Powers and US Freight Imports

In February 2026, a mid sized electronics importer in Long Beach received a customs invoice that was $84,000 higher than the same shipment from China had cost three months earlier. The merchandise classification had not changed. The country of origin had not changed. The product cost had not changed. What had changed was that a new layer of IEEPA tariffs had taken effect, stacked on top of the existing Section 301 tariffs and the standard Most Favored Nation rate. The forwarder spent two days explaining to the importer why the duty bill was three times what they had budgeted for the quarter.

IEEPA tariffs are the most disruptive tool in modern US trade policy because they bypass the slow, hearing based process that Section 232 and Section 301 actions require. A president can invoke IEEPA in a single proclamation, and an importer's landed cost can change overnight. For freight forwarders advising US importers in 2026, understanding what IEEPA is, what is currently in force, and how to model the cost impact has shifted from a niche compliance topic to a core advisory skill.

This guide explains the International Emergency Economic Powers Act in plain language, walks through the IEEPA tariffs in force in 2026, separates IEEPA from Section 232 and Section 301, and outlines what forwarders should be telling their import customers.

What Is IEEPA?

IEEPA was enacted by Congress in 1977 to give the president a fast acting tool for economic responses to genuine foreign threats. For most of its history, IEEPA was used for narrow purposes such as freezing the assets of terrorist organizations, sanctioning hostile regimes, and blocking financial transactions with countries under embargo.

The novel use of IEEPA in 2025 was to impose broad import tariffs on entire countries, not just to freeze specific assets. This dramatically expanded the practical reach of the statute and is the reason IEEPA has become a core trade policy term that freight forwarders, importers, and customs brokers have to understand in 2026.

How IEEPA Differs from Other Tariff Authorities

The US president has multiple statutory tools for imposing import tariffs. The three most relevant in 2026 are IEEPA, Section 232, and Section 301. Each has a different trigger, a different process, and a different review standard.

The practical difference is speed. A Section 232 or Section 301 case takes months of investigation, public hearings, and agency review. An IEEPA action can take effect within days of a presidential proclamation. For importers, that means much less warning to adjust sourcing, renegotiate contracts, or pre clear inventory.

IEEPA Tariffs in Force in 2026

As of mid 2026, the United States has IEEPA tariffs in force against three major trading partners. Rates vary by country, sector, and HTS classification, and the rules are amended frequently. Importers and forwarders should verify the current rate against the latest Federal Register notice or CBP CSMS message before relying on any specific number.

China

IEEPA tariffs on imports from China were first imposed in early 2025 under a fentanyl trafficking emergency declaration. They have been adjusted multiple times since. The IEEPA layer applies on top of existing Section 301 China tariffs (which range from 7.5% to 100% by product) and the standard MFN duty rate.

Because the overwhelming majority of Chinese origin goods arrive on the water, ocean import lanes carry most of the IEEPA fentanyl exposure. Forwarders who operate on Ocean Import Freight Management Software that ties MBL, HBL, entry, and duty deposit to the same shipment record can flag the stacked IEEPA + Section 301 + MFN exposure at booking, not at clearance.

A practical example for a US importer of Chinese consumer electronics in mid 2026:

• Standard MFN duty rate: 3.9%
• Section 301 China tariff on the HTS line: 25%
• IEEPA fentanyl tariff layer: 20%
• Effective stacked rate at entry: 48.9% of declared value

On a $250,000 shipment, that is $122,250 in duty before Merchandise Processing Fee (MPF) and Harbor Maintenance Fee (HMF). For the same shipment in 2024, before any IEEPA layer existed, the duty would have been roughly $72,250.

High value, time sensitive Chinese origin cargo (semiconductors, medical devices, high end electronics) that moves by air instead of ocean is exposed to the same IEEPA layer at the same rate. Air import lanes do not escape the fentanyl tariff simply because the mode changed; forwarders running Air Import Freight Management Software should be modeling identical duty stacks on air entries to prevent the "we thought air was different" surprise at clearance.

Mexico

IEEPA tariffs on imports from Mexico were first imposed in 2025 under a migration and fentanyl emergency declaration. Goods that qualify for preferential treatment under USMCA are exempt from the IEEPA layer in most cases, but goods that do not meet USMCA rules of origin (because the regional value content threshold is not met, or because the importer never claimed USMCA at entry) are exposed to the full IEEPA rate.

This makes the certificate of origin a much more valuable document in 2026 than it was in 2024. Importers who used to skip the paperwork to save $50 on certification fees are now paying tens of thousands of dollars in IEEPA duty per shipment because their Mexico bound goods do not qualify for USMCA at entry.

Canada

IEEPA tariffs on imports from Canada follow the same pattern as Mexico: USMCA qualified goods are largely exempt; non qualifying goods face the IEEPA layer on top of the MFN rate. Specific sectors (notably energy and certain agricultural products) have their own carve outs that have been amended multiple times. Canadian softwood lumber, which already faces countervailing and anti dumping duties, is a particularly complex stack to model.

How IEEPA Tariffs Stack with Section 232, Section 301, and MFN

The single biggest source of importer confusion in 2026 is duty stacking. IEEPA tariffs do not replace existing duty layers; they sit on top of them. The order of stacking matters for calculation purposes.

For a typical Chinese steel product subject to all four layers, the calculation runs:

1. 1
   Classify the product under HTSUS
   Identify the correct 10 digit HTS code. This determines every downstream rate. A misclassification can mean a 0% Section 301 line is treated as a 25% line, or vice versa.
2. 2
   Apply the MFN rate
   The standard Most Favored Nation duty from the HTSUS column 1 general rate. This is the base layer.
3. 3
   Add Section 232 if applicable
   For steel and aluminum products listed in the Section 232 proclamations, add the 232 rate (commonly 25% on steel, 10% on aluminum, though rates have been amended).
4. 4
   Add Section 301 if Chinese origin
   If the country of origin is China and the HTS line is on the active Section 301 list, add the Section 301 rate (commonly 7.5%, 25%, or 100% depending on the product list).
5. 5
   Add IEEPA if applicable
   If the country of origin is covered by an IEEPA proclamation and the product is not carved out, add the IEEPA rate. For China origin goods this is the fentanyl IEEPA layer; for Mexico and Canada origin goods this is the migration and fentanyl IEEPA layer, subject to USMCA exemptions.
6. 6
   Add MPF, HMF, and AD or CVD
   Merchandise Processing Fee (0.3464% of value, capped), Harbor Maintenance Fee (0.125% for ocean entries), and any product specific anti dumping or countervailing duties. Total this gives the landed duty.

For a deeper walkthrough of MFN duty mechanics, MPF, HMF, and the general calculation framework, see our customs duty and import tax guide. That guide covers the base layers IEEPA stacks on top of.

The 2025 Supreme Court Ruling on IEEPA Tariffs

The first wave of IEEPA tariffs in 2025 was challenged in federal court on the grounds that imposing broad import tariffs went beyond what Congress had authorized in the 1977 statute. The challenges worked their way through the lower courts and reached the Supreme Court in 2025.

The Supreme Court upheld the president's authority to impose IEEPA tariffs but with conditions. The majority opinion accepted that "regulate importation" under IEEPA can include imposing tariffs, but emphasized that the underlying national emergency declaration must be tied to a genuine, identifiable foreign threat. The decision did not give a blank check for tariffs imposed under any pretext, and several justices signaled in concurrences and dissents that future challenges based on the sufficiency of the emergency declaration are likely.

For importers and forwarders, the practical impact is twofold. First, IEEPA tariffs are not going to be invalidated by the courts in the short term. Plan your business around them. Second, the door is open for future cases that could narrow the scope of IEEPA, so the legal landscape is not fully settled. Track significant cases through your trade counsel.

What Freight Forwarders Should Advise Importers

IEEPA tariffs have shifted what importers expect from their forwarder. Bookings, documentation, and tracking are still essential, but the highest value forwarder conversation in 2026 is duty exposure modeling. Forwarders who do this well are retaining customers through rate spikes; forwarders who do not are losing customers to brokers and competitors who do.

1. Model Landed Cost Before Booking, Not After

The pre IEEPA workflow was: customer requests a quote, you book, the customer figures out duty at clearance. The post IEEPA workflow has to be: customer requests a quote, you model the full duty stack at the HTS level, you flag the exposure in writing, then the customer decides whether to book. A Rate Management Quoting Software for Forwarders capability that ties freight rates to duty exposure on the same quote eliminates the gap between booked rate and landed cost surprise.

2. Push Customers to Verify HTS Classification

Under a stacked rate regime, a wrong HS code classification can cost the importer five or six figures per shipment. Encourage customers to request a binding ruling from CBP for ambiguous products. Maintain an internal classification reference for your top SKUs by customer.

3. Audit USMCA Eligibility on Every Mexico and Canada Lane

Many Mexico and Canada origin goods that historically did not bother with USMCA certification are now exposed to large IEEPA tariffs unless they claim the FTA. Audit your import customers' Mexico and Canada lanes. Identify goods that qualify but do not currently claim USMCA. Help them coordinate with suppliers to get the right certificate of origin in place.

4. Pre Clear Inventory Before Announced Rate Changes

IEEPA rate changes typically take effect on a specific date stated in the proclamation. Goods that arrive and clear before that date are duty assessed at the old rate. Goods that arrive after are at the new rate. Forwarders who track upcoming changes and proactively suggest pre clearance, expedited customs filing, or use of a bonded warehouse can save customers significant money on the timing of a single shipment.

5. Connect Customs Filings into a Single Shipment Record

The stacked IEEPA + Section 301 + MFN rate landscape produces a lot of CBP CSMS messages, broker queries, and post entry amendments. Forwarders running on Freight Integrations Software for Forwarders can tie customs filings, broker responses, and CBP correspondence into the same shipment record the operations team is already using, which prevents the "where did the broker say we landed on duty?" problem when the customer calls.

Common Mistakes Importers Make on IEEPA Tariffs

Confusing IEEPA with Section 301

Importers often refer to "the China tariffs" as a single thing. They are not. Section 301 tariffs on China have existed since 2018 and apply to specific HTS lines on published lists. IEEPA tariffs on China started in 2025 and apply much more broadly under the fentanyl emergency declaration. They stack. Both must be calculated separately. A customer who tells you they are already paying Section 301 may still be unaware of an additional IEEPA layer on the same shipment.

Assuming USMCA Qualified Goods Are Automatically Exempt

USMCA exemptions from IEEPA on Mexico and Canada origin goods only apply when the importer actually claims USMCA at entry. If the entry summary does not claim the FTA, the goods are treated as non qualifying and the IEEPA rate applies. Verify on the entry that USMCA is being claimed; do not assume.

Forgetting That MPF and HMF Still Apply

IEEPA tariffs are added to the duty calculation, not substituted for the standard fee structure. Merchandise Processing Fee (capped at $614.35 per entry in 2026) and Harbor Maintenance Fee (0.125% of value for ocean imports) still apply on top.

Not Reviewing Country of Origin Documentation

IEEPA tariffs are country specific. Goods that pass through China or Mexico in transit but were manufactured elsewhere are not subject to IEEPA on those countries (though they may face other duty layers based on actual country of origin). Inadequate origin documentation can lead to incorrect IEEPA assessment that has to be unwound through post entry amendment.

Frequently Asked Questions

What does IEEPA stand for?

IEEPA stands for the International Emergency Economic Powers Act. It is a 1977 US federal law that authorizes the president to regulate international economic transactions, including imports and exports, after declaring a national emergency based on an unusual and extraordinary foreign threat. IEEPA has historically been used for sanctions and asset freezes, and since 2025 has been used to impose broad import tariffs on countries linked to declared emergencies.

What are IEEPA tariffs?

IEEPA tariffs are import tariffs imposed by the US president under the authority of the International Emergency Economic Powers Act. They are tied to a specific national emergency declaration, such as the 2025 fentanyl and migration emergencies, and apply to imports from designated countries. Unlike Section 232 and Section 301 tariffs, IEEPA tariffs do not require a prior investigation or public hearing process, so they can take effect almost immediately after a presidential proclamation.

What is the difference between IEEPA tariffs and Section 232 tariffs?

IEEPA tariffs are imposed under the International Emergency Economic Powers Act based on a declared national emergency and can target any country named in the proclamation. Section 232 tariffs are imposed under the Trade Expansion Act of 1962 based on a Commerce Department finding that imports of a specific product threaten national security; they cover specific products such as steel and aluminum regardless of country of origin. The two layers can stack on the same product, for example Chinese steel facing both Section 232 and an IEEPA layer.

What is the difference between IEEPA tariffs and Section 301 tariffs?

IEEPA tariffs are based on a national emergency declaration and apply country wide once imposed. Section 301 tariffs are based on a US Trade Representative investigation finding an unfair foreign trade practice and apply to specific HTS classifications listed in the action. The active Section 301 tariffs in 2026 are still primarily aimed at Chinese imports across published product lists, and they stack with the IEEPA China tariffs imposed under the fentanyl emergency. Both layers are added to the standard MFN duty rate.

Which countries have IEEPA tariffs against them in 2026?

As of mid 2026, the United States has IEEPA tariffs in force against imports from China, Mexico, and Canada. The China tariffs are tied to a fentanyl trafficking emergency declaration. The Mexico and Canada tariffs are tied to migration and fentanyl emergency declarations, with significant carve outs for goods that qualify for preferential treatment under USMCA. Rates and carve outs have been amended multiple times since 2025, so importers should verify the current rate against CBP CSMS messages before relying on any specific number.

Do IEEPA tariffs stack with Section 301 tariffs?

Yes. IEEPA tariffs stack on top of any Section 301 tariffs already in force on the same product, as well as on top of the standard MFN duty rate and any applicable Section 232 tariff. For a Chinese consumer electronics import with a 3.9% MFN rate, a 25% Section 301 rate, and a 20% IEEPA fentanyl layer, the effective stacked duty rate at entry is 48.9% of the declared value, before Merchandise Processing Fee and Harbor Maintenance Fee.

Did the Supreme Court strike down IEEPA tariffs?

No. In 2025 the Supreme Court upheld the president's authority to impose tariffs under the International Emergency Economic Powers Act. The Court accepted that the statute's "regulate importation" language can include tariffs, but emphasized that the underlying national emergency declaration must be tied to a genuine foreign threat. The ruling left the door open for future challenges based on the sufficiency of specific emergency declarations, but did not invalidate the IEEPA tariffs in force at the time.

Are USMCA qualifying goods exempt from IEEPA tariffs?

Goods imported from Mexico and Canada that qualify for preferential treatment under USMCA are largely exempt from the IEEPA tariffs imposed under the migration and fentanyl emergency declarations, in most product categories. The exemption only applies when the importer actually claims USMCA at entry and the goods meet the rules of origin under the agreement. Goods that fail the USMCA rules of origin, or for which USMCA was simply not claimed on the entry summary, are exposed to the full IEEPA rate.

How do I calculate landed cost under stacked IEEPA, Section 301, and MFN rates?

Classify the product under the correct HTSUS code, then apply each duty layer in sequence: the MFN rate from the HTSUS, any Section 232 rate for the product category, any Section 301 rate if the country of origin is China and the HTS line is on the active list, and any IEEPA rate if the country of origin is covered by a current proclamation. Add the Merchandise Processing Fee (0.3464% of value, capped), the Harbor Maintenance Fee (0.125% for ocean imports), and any product specific anti dumping or countervailing duties. The total of all these layers, plus freight and insurance, is the landed cost.

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• Cross Border Shipping Guide: US, Canada, and Mexico Trade
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