Tariffs in 2026

Tariffs in 2026

We’ll continue to monitor the situation and will be updating the blog regularly.

To understand where things stand in 2026, we need to understand what didn’t change. 

The current tariff system still rests on the foundations of the original US–China trade war. Between 2018 and 2019, the United States imposed tariffs on roughly $370 billion of Chinese imports under Section 301, a legal mechanism used to respond to trade practices identified by the US as unfair.

These tariffs were introduced in four waves (Lists 1–4) and still cover a large share of Chinese exports to the US today. This is why, more than ever, working with reliable suppliers who understand HS codes, material breakdowns and compliance requirements is essential.

2025: When Tariffs Peaked

In 2025, additional tariffs were layered on top of this existing structure.

At one point, Chinese imports faced:

• 25% Section 301 tariffs
• Additional targeted duties
• Temporary IEEPA tariffs
• Standard MFN duties

The average effective US tariff rate reached around 27% in early 2025 which was the highest level in over a century. This is what accelerated the shift toward “China Plus One” sourcing strategies.

What “China Plus One” Means for Buyers

“China Plus One” refers to sourcing from China plus at least one additional country, typically in Southeast Asia.

Common alternatives include:

• China
• Vietnam
• Indonesia
• Taiwan

The goal is to reduce:

• Tariff exposure
• Supply chain risk
• Overdependence on a single market

However, this strategy is becoming more complex in 2026 as tariff scrutiny expands globally.

2026: The Supreme Court Reset

On 20 February 2026, the US Supreme Court ruled that tariffs imposed under emergency powers (IEEPA) were unlawful.

The result:

• One layer of tariffs was removed
• A new system was introduced
• Section 301 and Section 232 tariffs remained fully intact

The effective rate fell to 13.7% in early 2026, before stabilizing again. This was a legal reset not a reduction in complexity or cost pressure.

10% on (Almost) Everything

From 24 February 2026, a 10% global tariff applies to nearly all imports under Section 122.

According to the White House:

• It applies across nearly all sourcing markets
• It stacks on top of existing tariffs
• It is temporary (up to 150 days, expiring around July 2026)

Tariff Stacking 

Even after the reset, most products face multiple overlapping tariffs. A typical luggage product may include:

• Section 301 tariffs (China)
• Section 232 tariffs (metal components)
• 10% global tariff
• Standard duties

This is why working with transparent, experienced suppliers is critical to accurately calculating landed cost.

Why China Still Carries the Highest Cost

China remains the most tariff-exposed sourcing market due to:

• Ongoing Section 301 tariffs
• Additional duties layered on top
• Broad product coverage

Expanding Risk: Tariffs Beyond China

In March 2026, new Section 301 investigations were launched targeting:

• Indonesia
• Taiwan
• Vietnam
• Malaysia, Thailand, and others

Country-by-Country Snapshot

China

China faces the full tariff stack:

• 10% Section 122 tariff
• ~25% Section 301 tariff
• Additional targeted duties
• Standard MFN rates

Taiwan

• Now subject to the 10% baseline
• Previously negotiated tariff reductions remain politically relevant
• New Section 301 investigations introduce future risk

Indonesia

• Currently under the 10% baseline
• Newly targeted in Section 301 investigations

Steel and Metal Components

Under Section 232, tariffs now apply to:

• Telescopic handles
• Frames
• Wheel housings
• Lock hardware

In 2025, the US expanded coverage to hundreds of additional steel and aluminium products.

These tariffs:

• Can reach up to 50%
• Apply regardless of country of origin
• Can apply to components inside finished goods

This creates split-duty products, increasing both cost and compliance complexity.

The 150-Day Window: What Happens Next?

The current 10% tariff expires around 24 July 2026.

At the same time:

• New tariffs are being developed
• Section 301 investigations are ongoing
• Enforcement is increasing

Tariff Checklist for Buyers (2026)

Use this checklist when sourcing luggage, locks, or travel goods:

1. Check tariff stacking

• Does the product face Section 301, 232, or both?
• Is the 10% global tariff also applied?

2. Review material composition

• Does the product include steel or aluminium components?
• Are these components separately tariffed?

3. Validate country of origin

• Where is final assembly done?
• Where are key components sourced?

4. Compare sourcing scenarios

• China vs. Vietnam vs. Indonesia vs. Taiwan
• Short-term cost vs. long-term tariff risk

5. Ask suppliers the right questions

• Can they provide HS codes and duty breakdowns?
• Do they understand US tariff classifications?
• Can they document component materials?

6. Plan for policy changes

• Will pricing still work if tariffs increase?
• Can production shift if new tariffs are introduced?

We’ll continue to monitor the situation and will be updating the blog regularly.