Navigate U.S. tariff changes with ease
What’s on this page?
The basics
Navigating the evolving landscape of U.S. import tariffs can be challenging, especially for small and medium-sized businesses. At FedEx, your success is our priority.
We’re committed to helping you stay informed and adapt to recent tariff changes. Our experienced team of experts in clearance and compliance work around the clock to help ensure your shipments continue moving across borders in more than 220 countries and territories.
Customs tariffs are duties applied to goods at the time of importation. These duties are typically calculated as a percentage of the goods' value and depend on three key factors:
- The customs classification of the goods
- The declared value of the goods
- The country of origin of the goods
What it means for your business
Higher Duty Costs
Recent changes may mean higher duties, depending on the type of goods and the country of origin.
Additional clearance requirements
New declaration requirements may apply to your shipments, and the process may differ from what you’ve done in the past. FedEx Electronic Trade Documents simplifies the submission of required customs paperwork — helping you stay compliant.
Customer expectations
Be transparent with your customers about who is responsible for paying duty, tax, and fees (Incoterms) and include these key details on your Commercial Invoice to avoid delays and surprises.
The Harmonized System (HS)
Most trading nations, including Canada and the United States (U.S.), use the Harmonized System (HS) to classify goods and determine applicable tariff rates.
In Canada
The HS is outlined in Canada's Customs Tariff Schedule, which organizes goods into 99 chapters. The Customs Tariff specifies the following duty rate categories:
- Most Favoured Nation (MFN) Rates: Applicable to goods from World Trade Organization (WTO) member countries.
- Preferential Rates: Applicable to goods from countries with which Canada has free trade agreements, such as the Canada-United States-Mexico Agreement (CUSMA).
In the U.S.
The HS is set out in the Harmonized Tariff Schedule of the United States (HTSUS), which also contains 99 chapters and explanatory notes to clarify how tariff rules are applied. The HTSUS assigns each good one of three categories of duty rates:
- Most Favoured Nation (MFN) Rates: Applicable to WTO member countries with normal trading relations with the U.S.
- Preferential Rates: Applicable to goods from countries with which the U.S. has free trade agreements, such as Canada under the United States-Mexico-Canada Agreement (USMCA).
- General Rates: Applicable to countries without normal trading relationships with the U.S.
What you need to know: Key updates
While understanding the basics of tariffs is essential, it’s equally important to stay up-to-date on recent changes that could impact your shipments.
Canada: Implementation of the United States Surtax Order for goods originating from the U.S.
Last Updated: August 29, 2025
U.S. and China reach agreement to temporarily reduce certain tariffs
Last Updated: May 14, 2025
U.S.: Elimination of de minimis treatment for imports
Last Updated: August 1, 2025
U.S.: Updated guidance on U.S. aluminum import tariffs
Last Updated: March 13, 2025
U.S.: Updated guidance on U.S. aluminum import tariffs
Last Updated: March 13, 2025
Explore tariff calculation resources
Check out these tools that can help you quickly find updated tariff information for specific products.
FedEx International Shipping Assist
Submit your shipment details, and we'll provide your Harmonized System Code, estimated duties and taxes, and blank copies of your customs export documentation.
Canada Tariff Finder
Use the Government of Canada’s tariff finder to get rates for specific products and countries where Canada has Free Trade Agreements.
Frequently Asked Questions
U.S. tariffs
A tariff is a tax or customs duty imposed by a government on goods imported (or sometimes exported from) a country. It is calculated as a percentage of the product’s value and is used to regulate trade, protect domestic industries, or generate revenue.
For example, if you're importing $500 worth of shoes from Italy and the tariff rate is 8.5%, you would pay $42.50 in tariffs as part of the import process.
The tariff responsibilities are typically agreed upon between a shipper and recipient. Tariffs can be paid by:
- The shipper (the person sending the goods)
- The recipient (the person receiving the goods)
- A third party, such as a freight forwarder
Effective at 12:01am (EDT) on August 29, 2025, the de minimis exemption for international shipments to the U.S. valued at US$800 or less is suspended. This means that exports at or below that amount require full customs documentation, and that duty, taxes, and/or fees may apply.
Many countries use the same global system, called the Harmonized System (HS), to classify products for tariffs. Here’s how it works in Canada and the U.S.:
In Canada:
Canada uses the Customs Tariff Schedule, which includes 99 chapters. Tariffs are assigned based on the trading relationship:
- Most Favoured Nation (MFN) Rates: Standard rates for most trading partners.
- Preferential Tariff Rates: Lower rates, generally for countries with trade agreements.
In the U.S.:
The Harmonized Tariff Schedule of the United States (HTSUS) is used, also containing 99 chapters. Products are assigned one of three duty categories:
- Most Favoured Nation (MFN) Rates: Standard rates for countries with normal trading relations (usually World Trade Organization members)
- Preferential Rates: Lower rates, generally for goods from countries with free trade agreements, such as Canada under the United States-Mexico-Canada Agreement (USMCA).
- General Rates: Standard rates for countries without normal trading relationships with the U.S.
The first six digits of an HS code are globally standardized under the Harmonized System, developed by the World Customs Organization (WCO), ensuring consistent classification across countries. However, individual countries and territories often add additional digits to meet their own regulatory, statistical, or tariff requirements.
Examples of country-specific extensions include:
- United States: 10-digit Harmonized Tariff Schedule of the United States (HTSUS or HTS)
- ASEAN countries: 6- and 8-digit ASEAN Harmonized Tariff Nomenclature (AHTN)
- Australia: 8-digit Australian Harmonized Export Commodity Classification (AHECC)
- Hong Kong: 8-digit Hong Kong Harmonized System (HKHS)
A customs broker is a licensed professional or company that helps you follow import rules when shipping goods to the U.S. and internationally. They can assist with:
- Determining the correct HTS code to classify imported goods (used to determine tariffs)
- Preparing and submitting required documents
- Calculating and paying duties, taxes, and fees
- Ensure compliance with U.S. Customs and Border Protection (CBP) policies to avoid non-compliance
You can use any licensed customs broker for international shipments. FedEx can act as your customs broker, or we can work with one you choose through FedEx International Broker Select®. Choosing a knowledgeable broker can help prevent delays, penalties, and incorrect tariff classifications.
Yes. Incorrect tariff classification, undervaluing goods, or failing to follow customs regulations can result in serious consequences, including:
- Fines or penalties issued by U.S. Customs and Border Protection (CBP)
- Shipment delays or holds
- Audits or investigations
- Back payment of duties and taxes, sometimes with interest
To avoid issues, ensure accurate HTS code classification, maintain thorough documentation, and consider working with a licensed customs broker.
If you see a Special Assessment Fee on your FedEx invoice, it means the product you imported into Canada is subject to additional government charges. These may include:
Anti-dumping and countervailing duties
FedEx consolidates these charges into a single line item labelled Special Assessment Fee on your invoice.
Note: This applies only to certain Canadian imports and is charged in addition to standard Canadian duties and taxes.
Learn more about duties and taxes for Canadian imports.
IEEPA tariff refunds
Section 122 Clarification:
On May 7, 2026, the U.S. Court of International Trade (CIT) ruled that the temporary tariffs imposed under Section 122 of the Trade Act of 1974 are unlawful. This opinion only applies to two businesses and the State of Washington, importers who brought the suit, and the decision has already been appealed by the government. On June 11, 2026, the Federal Circuit stayed enforcement of the CIT’s ruling, allowing the tariffs to continue while the appeal proceeds. Tariffs imposed under Section 122 are separate and distinct from IEEPA tariffs. This decision does not impact the IEEPA refund process, and Section 122 duties are not currently eligible for IEEPA tariff refunds. At this time, FedEx will continue to assess and collect Section 122 tariffs in accordance with current government guidance, unless and until further direction is issued by U.S. authorities.
This Supreme Court’s decision does not negate all tariffs, only those where International Emergency Economic Powers Act (IEEPA) was invoked – tariffs commonly referred to as “reciprocal tariffs” and “Fentanyl tariffs.” All other duties will continue to be collected by U.S. Customs and Border Protection (CBP) including most favored nation, Section 122, Section 232, and Section 301 tariffs. This means that in some instances, customers / recipients may see a partial refund of duties paid.
Yes. U.S. Customs and Border Protection (CBP) did not cease collecting duties imposed under IEEPA until 12:00am EST on February 24, 2026. CBP continues to collect other applicable duties.
As a transportation provider and customs broker, FedEx is required to assess and collect duties and taxes in accordance with current customs regulations and government directives in effect at the time of import. Therefore, FedEx invoicing processes remain in place.
Phase 1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation. Entries for which liquidation is final, entries covered by an open protest, entries that have been flagged for reconciliation, designated on a drawback claim, and entries subject to antidumping and/or countervailing duties for which the Dept. of Commerce has issued liquidation instructions are also among those categories of entries that will not be covered during Phase 1.
FedEx is filing Declarations covering all Phase-1 eligible entries on behalf of customers for whom it served as a customer broker, regardless of who is the importer of record unless a request to delay or opt-out was timely received by FedEx.
FedEx is unable at this time to provide customers with entry reports that could be used to reasonably estimate refunds because the duty billing and payment records reside outside our entry system. Any report that FedEx could generate today would be incomplete and would not provide an accurate refund estimate or a determination as to who ultimately bore the tariff charges. Final refund amounts will not be available until CBP has accepted submissions, which could take 60-90 days assuming there are no issues with the entry requiring further review by CBP. FedEx is committed to providing this information to its customers as soon as it is available.
No. FedEx will not charge a fee for this service. We are committed to assisting our customers obtain refunds.
Yes. FedEx will issue refunds for IEEPA tariffs paid to shippers and consumers who originally bore those charges once FedEx begins receiving refunds from CBP.
Importers of Record who are also listed as notify party should ensure that they have an ACE Portal Refund account and that they are set up to receive a refund via ACH from CBP.
To improve transparency, FedEx will launch an initial customer portal by July 10. This tool will allow customers to enter shipment details and verify whether a refund has been received by FedEx, including the associated money and interest, and when the refund was received.
U.S. Customs and Border Protection (CBP) provides multiple ACE (Automated Commercial Environment) reports that Importers and Brokers can use to monitor the status of CAPE refund claims, including liquidation and refund activity. This information is available in the Cargo Systems Messaging Service (CSMS) notice below:
The CSMS explains which ACE reports are available to Importers and Brokers and how each report can help monitor CAPE-related refunds. Importers of Record are encouraged to review this CSMS and leverage the applicable ACE reports to proactively track and manage their refund activity.
You can find additional information at https://www.cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds
As previously announced, when the CAPE portal opened in April, FedEx began submitting Declarations for those Phase 1 shipments where we served as broker. We did so to help our customers maximize the number of eligible submissions before applicable liquidation deadlines. On May 11, FedEx began receiving government-issued refunds for entries where we were the IOR or where we were designated by the IOR as the notify party on a customer-submitted CF4811.
We recognize that customers are eager to understand when refunds will be disbursed. FedEx remains fully committed to remitting all applicable duties – along with any accrued interest received from the U.S. Treasury – as quickly as possible. At the same time, we are managing over 20 million entries with IEEPA duties across hundreds of thousands of accounts. We are diligently working through necessary validation and financial reconciliation processes to ensure accuracy and safeguard against fraud.
To support this effort, FedEx has invested heavily in all available resources to build a secure, precise solution. We are doing so at no cost to our customers and are absorbing the associated operational expenses.
What to Expect:
- To improve transparency, FedEx will launch a customer portal by July 10. This tool will allow customers to enter shipment details and verify whether a refund has been received by FedEx, including the associated money and interest and when the refund was received.
- Within the portal, customers will have the option to consent to sharing limited shipment and refund data with trusted vendor partners solely for the purpose of reconciliation and processing refunds. As portal functionality expands after July 10, customers who verify their accounts and opt in to data sharing will be prioritized for disbursement. Customers who decline data sharing will still receive refunds, though on a longer timeline based on available internal resources.
- We anticipate that those initial refunds received by FedEx will begin to be disbursed to our customers on or about August 10. Refunds will continue to be disbursed on a rolling basis.
It is important to note that FedEx has not yet received refunds for all shipments subject to IEEPA tariffs or even for all entries submitted during Phase 1. During Phase 1, U.S. Customs and Border Protection (CBP) limited eligibility to unliquidated entries and those within 80 days of liquidation. Phase 1 refunds continue to be sent by the U.S. Treasury to FedEx on a rolling basis. CBP has not yet initiated Phase 2 or Phase 3 of the refund process; however, CBP is targeting June 29 as the date it will begin accepting Phase 2 submissions and July 31 for Phase 3 submissions. Phase 2 will cover only those entries flagged for reconciliation for which the reconciling entry has not yet been filed. Who will be eligible for refunds during Phase 3, which covers finally liquidated entries and other complex entries, remains uncertain and is being addressed in the courts. If you are an Importer of Record, we encourage you to discuss eligibility for Phase 3 refunds with your legal counsel.
We understand the challenges this process has created for our customers. FedEx remains dedicated to providing transparency at every step and genuinely appreciates the continued patience as we work through this complex regulatory environment.
FedEx continues to support you with International Emergency Economic Powers Act (IEEPA) duty requirements and upcoming U.S. Customs and Border Protection (CBP) refund phases. CBP anticipates that it will begin accepting Phase 2 CAPE filings on June 29. Phase 2 of the refund process covers entries that were flagged for reconciliation at the time of entry. These filings remain subject to CBP processing timelines.
To streamline processing and minimize your administrative burden, FedEx will proactively submit Phase 2 CAPE filings on behalf of eligible Importers of Record beginning July 7.
If you prefer to manage your own Phase 2 CAPE filings, you must opt out no later than July 6th by contacting CAPE_CustSelfFiling@fedex.com. Your request must include your Company Name, FedEx Account Number, EIN/IOR Number, and representative contact information. Please note, if you already notified FedEx of your desire to opt out in connection with Phase 1 submissions, that request will be honored for all subsequent phases and you do not need to reach out again.