Charles Clevenger of UHY explains why country-level summaries no longer capture a company’s true tariff exposure — multiple duties can apply to one shipment and a rate that vanishes may be replaced by another — and lays out a disciplined approach to determining what applies now, planning for what could change and confirming how tariffs interact before repricing or reshuffling suppliers.
Halfway through 2026, another layer of complexity has been added to the tariff landscape. The expiration of the temporary 10% Section 122 import surcharge on July 24 removed one broadly applied cost from many imports. But on that date, Section 301 tariffs took effect across 60 major US trading partners, generally at rates of 10% or 12.5%. Separate trade actions have added a 25% tariff to certain Brazilian imports, while specified Canadian goods are scheduled to face an additional 50% tariff under Section 338 beginning Aug. 19, just a few days out from this writing. Section 232 tariffs continue to apply to steel, aluminum, copper and covered derivative products.
Each action has its own legal authority, effective date, product scope, exclusions and rules governing how it interacts with other duties. A tariff that disappears may be replaced by another. A rate that appears to apply to an entire country may exclude certain products. Multiple duties may apply to the same entry, while anti-stacking provisions may prevent certain combinations.
Businesses navigating the rest of the year need a disciplined process for determining what applies today, anticipating what could change and remaining flexible if duties are later modified or invalidated.
Understand the tariff exposure at the product level
Country-level tariff summaries can help executives understand the direction of trade policy but will not always capture total exposure.
The duty owed on a shipment may depend on its harmonized tariff schedule classification, country of origin, component materials, entry date and eligibility for an exclusion. The analysis may also need to consider ordinary customs duties, Section 232 or Section 301 tariffs, antidumping or countervailing duties and other trade measures.
The new Section 301 action involving 60 trading partners demonstrates the importance of product-level analysis. The action generally applies additional tariffs of 10% or 12.5%, subject to product exemptions and special calculations for certain trading partners. Products subject to Section 232 tariffs are excluded from the new action.
Brazil adds another layer. Certain Brazilian goods may be affected by both the separate 25% Section 301 action and the broader forced-labor-related Section 301 tariffs. Depending on the product and applicable exemptions, the additional Section 301 burden can reach 37.5% before considering ordinary duties or other charges.
Companies should determine which products are included in each tariff action and confirm that their country-of-origin treatment is accurate and well supported. That approach requires reviewing product classifications, sourcing and manufacturing details, applicable exclusions, the importer of record and relevant effective dates before estimating the financial impact.
Plan for durability without assuming permanence
The staying power of a tariff depends in part on the statute used to impose it; it remains to be seen how this will play out pending any litigation, but companies should assume these tariffs will be in place for an extended period.
Section 122 expressly limited the temporary surcharge to 150 days unless Congress extended it. Its July expiration was therefore built into the original action.
Other authorities operate differently. Section 301 tariffs can remain in place while the US seeks changes in another country’s trade practices. They may be modified through negotiations, product exclusions, administrative reviews or changes in policy. Section 232 measures can also remain in effect for extended periods because they are tied to national security findings rather than a fixed statutory expiration date.
The use of Section 338 against Canadian goods introduces an additional variable. That authority has been used infrequently, and the recently announced duties apply to broad lists of specified Canadian products, including some goods that qualify for preferential treatment under the United States-Mexico-Canada Agreement. Energy, potash, products subject to Section 232 and certain other goods are excluded.
For planning purposes, companies should treat tariffs currently in effect as part of their near-term cost structure while maintaining scenarios for modification, expansion or removal. Forecasts based on a single assumed rate may become outdated before a purchase order is fulfilled.
Scenario planning should include goods already ordered, products in transit and future purchases. It should also account for the possibility that things will change.
Follow the legal authority behind each action
Legality cannot be evaluated across the tariff environment as a whole. Each tariff program rests on a distinct statute, administrative record and procedural history.
Current actions under Sections 232, 301 and 338 may raise different legal questions. A decision affecting one authority does not automatically determine the validity of another.
Businesses should continue complying with tariffs being collected while monitoring litigation and administrative developments relevant to their entries. They should also preserve classification records, entry documents, customs communications and proof of payment. Those materials may become important if a court decision, exclusion or agency action creates a recovery opportunity.
Legal uncertainty should also be incorporated into accounting and forecasting. A potential legal challenge generally does not eliminate the immediate cash requirement when goods enter the country, and a possible future refund should not be treated as available operating cash.
Confirm tariffs stack before changing prices
One of the most consequential questions for the rest of the year is whether multiple tariffs apply to the same product.
Some trade actions are imposed in addition to existing duties. Others contain exclusions designed to prevent overlap. The expired Section 122 surcharge, for example, generally applied in addition to other duties but did not apply to portions of imports already subject to Section 232 tariffs. The new 60-economy Section 301 action also excludes articles and parts covered by Section 232.
These provisions can produce different results for products with similar descriptions or supply chains. A steel component may receive different treatment from the finished product containing it. Two products from the same supplier may fall under different tariff classifications and exclusion lists.
Companies should conduct a stacking analysis before changing customer prices, renegotiating supplier terms or shifting sourcing. Decisions made using an incomplete tariff rate can lock a business into unfavorable pricing or cause it to abandon a supplier that remains economically competitive after exclusions are considered.
Connect customs compliance with commercial decisions
Tariff management should involve procurement, finance, legal, tax, operations, compliance and sales. Each function controls information needed to assess the full impact.
Procurement knows which orders can be delayed, redirected or renegotiated. Customs professionals understand classification, origin and entry requirements. Finance should quantify margin and working-capital effects while legal evaluates contract language governing tariff increases, force majeure, price adjustments and refund ownership. Sales leaders need to understand which costs can be passed through to customers and which may need to be absorbed.
Contracts deserve particular attention. Businesses should determine who is responsible for duties under current shipping terms, whether pricing provisions permit tariff-related adjustments and who is entitled to a refund if duties previously passed through to a customer are later recovered.
This review is especially important for long-term agreements negotiated before the recent tariff actions and for open purchase orders involving goods that may enter after a new effective date.
Treat refunds as an active workstream
IEEPA refunds have created a meaningful recovery opportunity, but the process requires active oversight.
Importers should identify potentially eligible entries, reconcile duties paid to their customs and accounting records, confirm the importer of record and review the status of each entry. They should also ensure that their banking information is properly established in the automated commercial environment. CBP requires eligible automated commercial environment account users to enroll for electronic refunds through the portal and provides reporting tools for monitoring refund status.
Companies should also examine whether recovered amounts affect customers, suppliers or other parties under their contracts. A refund received by the importer of record may represent a financial recovery for the company, an amount owed to a customer or a combination of both.
Charles Clevenger is a principal at UHY Consulting in Atlanta. His specialties include complex supply chain, procurement strategy and structure, operations management, total value management analysis and solutions. 
