What is a tariff? 

A tariff is a tax or duty imposed by a government on goods or services imported from another country.

Tariffs are primarily paid by domestic importers in the United States. When goods from a foreign country enter the U.S., the importer is legally responsible for paying the tariff to U.S. Customs and Border Protection (CBP) at the port of entry. In the United States, tariffs are collected by U.S. Customs and Border Protection (CBP) agents at 328 ports of entry across the country.

For a general overview of U.S. trade policy, the U.S. Congressional Research Service has shared this summary.

How do I know if my import is subject to tariffs?

U.S. Customs and Border Protection (CBP) uses the Harmonized Tariff Schedule (HTS) to classify imported goods and determine applicable duty rates.  Find information about your product’s HTS code here. 

What is a Free Trade Agreement?

A free trade agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights. As of June 2025, the U.S. has 14 FTAs with 20 countries.

Find more information about free trade agreements with the U.S. here.

Tools to Potentially Mitigate Potential Tariff Impacts

• Consult a Permitted Customs Broker
  • Customs brokers assist importers to ensure they meet federal requirements governing imports into the United States.  They manage transactions concerning the entry and admissibility of goods through customs, including product classification, valuation for duties, and the payment or recovery of fees like taxes, refunds, rebates, and duty drawbacks. View Permitted Customs Brokers Listing
• Consider Utilizing Foreign Trade Zones (if eligible) and Bonded Warehouses
  • A Foreign Trade Zones (FTZ) is a designated location where companies can use special customs procedures to delay or reduce import duties on goods. Learn more
    • List of FTZs in New York State
  • A Customs Bonded Warehouse is a secure storage facility where imported goods can be stored without immediately paying import duties or taxes. These goods can be stored for up to five years in the United States without incurring duty fees. Learn more
• Determine Your Customs Duty Drawback Qualification
  • Customs Duty Drawback is a program run by U.S. Customs and Border Protection (CBP) where companies can be granted refunds of duties and taxes for imported goods that are later exported as unused or manufactured in the US into a finished product and exported.
• Review Rules of origin (ROOs)
  • Rules of Origins are used to determine if products are eligible for duty-free or reduced duties under the Free Trade Agreement (FTA) rules even though they may contain non-originating (non-FTA) components.
  • Companies should review the rules of origin to determine if your product qualifies for a lower tariff rate through another country. 

Additional Federal Resources for Export Assistance: 

• U.S. Department of Commerce International Trade Administration (ITA)
• U.S. Commercial Service New York Office
• Export Controls: The U.S. Department of Industry and Security Bureau of Industry and Security advances U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.
  • Export Administration Regulations (EAR) regulates the export of goods and technologies to protect national security and foreign policy. https://www.bis.gov/regulations 

Financing Tools

• Federal Export-Import Bank (EXIM): Provides trade financing solutions to U.S. goods and services exporters such as export credit insurance, working capital guarantees, and guarantees of commercial loans to foreign buyers.
  • Contact for Ex-Im Eastern Region
• Federal Small Business Administration (SBA): Offers programs to provide lenders with export loans.
  • More information about SBA’s export assistance programs
• State Small Business Credit Initiative (SSBCI)
  • ESD has developed a suite of capital access and equity programs to help New York State small businesses recover from the economic effects of COVID-19 and allow them the opportunity to succeed. More than $500 million in federal funding is available to support all small businesses across New York State through the State Small Business Credit Initiative (SSBCI). Managed by the U.S. Department of Treasury, SSBCI provides funds to support programs for all small businesses, including socially and economically disadvantaged individual (SEDI) owned businesses and very small businesses (VSB).
  • Find what SSBCI program might help your company here. 

To learn more about other State resources to help your business grow in New York State, visit ESD.ny.gov. 

• Global NY Export Assistance
• Directory of ESD’s Regional Economic Development Councils (REDC)
• Directory of New York State Chambers of Commerce
• Find your local representative: New York State Congressional Delegation