Candles and home fragrance have long run on thin import margins, so even a low base duty plus current China-era surcharges can compress an already tight spread. Most of this category is small, low-priced, and shipped in volume, which means duty lands on hundreds of near-identical SKUs at once rather than on a few high-value units. When the stacked rate moves, the effect can be easy to miss per item but add up across a quarter.
Representative 2026 estimate stacking base MFN duty (USITC HTS 2026 Rev.10), Section 301 on China-origin goods (USTR), Section 232 on autos and steel/aluminum/copper articles (CRS IN12545), and the 10% Section 122 surcharge that expires 2026-07-24 and is under appeal (Skadden). South Korea duty-free treatment requires meeting USMCA or KORUS rules of origin; non-qualifying goods pay standard MFN duty. Your exact per-SKU duty depends on the precise HS code, which MarginGuard resolves from the live HTS schedule once connected. Not legal or customs advice.
South Korea trades with the United States under KORUS, a free-trade agreement, which means most qualifying goods can enter duty-free provided they meet the agreement's rules of origin. For a Shopify merchant, that duty-free treatment can remove a line item from landed cost compared with sourcing from countries whose goods face standard or higher tariffs. The treatment is conditional: the duty-free rate applies only to goods that actually originate in Korea under KORUS criteria, not to anything merely shipped or finished there. Whether your specific product qualifies, and what rate applies if it does not, turns on its exact HS code and origin, so the representative rate shown on this page is a starting point rather than a quote for your SKU.
South Korea can be a lower-duty alternative to China when goods qualify, because KORUS allows qualifying goods to enter duty-free rather than at the variable and sometimes higher rates Chinese imports can carry. It carries its own trade-offs, and they fall mostly on cost-of-goods and capacity rather than tariffs: Korean manufacturing tends toward higher-value, higher-labor-cost output (electronics, cosmetics and skincare, auto parts, industrial components), so unit prices can run above Chinese equivalents and minimum order quantities may not suit very small runs. The main condition is rules of origin. A factory in Korea that assembles imported Chinese components may not produce a KORUS-originating good, which means the duty break you budgeted for may not apply. To source here for margin safety, confirm with your supplier that the product qualifies as Korean-origin under KORUS, obtain documentation to support that, and price in the higher base cost rather than assuming duty-free entry erases the difference. This is general guidance, not customs advice; verify eligibility with a licensed customs broker for your goods.
That's a single SKU. Across a full catalog the tariff hits every imported product differently depending on its cost and price — which is exactly why margin damage hides until a quarter closes light.
Paste your Shopify URL. In about ten seconds you'll see every SKU that dropped below your target margin after the current South Korea tariffs — and the exact price to charge to recover each one. Free, no login.
Scan your store free →Landed cost = unit cost × (1 + tariff rate). To get back to a target margin M, the recovery price is landed cost ÷ (1 − M). For a $28 candle set from South Korea at a 10% stacked rate, that means charging $21.56 to hold a 40% margin. Round to a clean price point and test it; the point is to stop selling underwater.
The base duty depends on where the product lands in the tariff schedule. Finished candles sit in HTS heading 3406 (candles, tapers and the like), which carries a low base rate; the exact figure depends on the precise HS code and is reflected in the representative rate box on this page. Home fragrance is not one heading: reed diffusers, room sprays, and scented oils often classify under Chapter 33 (essential oils and perfumery preparations, frequently heading 3307 for room deodorizers), while the wax articles and candles themselves sit in Chapter 34. What tends to move the real number is less the wax and more the country of origin and any China-era surcharges stacked on top of the base, so two visually identical candle sets can carry very different landed costs depending on where they were poured. Because the per-SKU rate hinges on the precise HS code, the classification call is what decides the duty.
A common trap in this category is petroleum wax candles from China: there is a long-standing US antidumping order on them, and if your candles are made primarily from petroleum (paraffin) wax and poured in China, a separate antidumping duty may apply on top of the base rate. Merchants who assume a candle is just a candle can be caught out by this on a routine entry. Soy, beeswax, and palm-based candles, and candles from other origins, generally sit outside that order, so the wax composition and country on your supplier spec sheet are not cosmetic details, they can decide whether an extra duty applies. Confirm the specifics of any given entry with a customs professional.
Because much of this category's exposure is the China-specific load (and, for paraffin candles, the antidumping order on top of it), shifting where the candle is actually poured tends to move the number more than reformulating the product. Vietnam, India, and other Southeast Asian sources commonly carry lower stacked rates for finished candles and diffusers, and switching the wax base away from petroleum paraffin may take a China-origin SKU out of antidumping exposure. Confirm with each new supplier exactly what the candle is made of and where every step happens, since country of origin for duty purposes generally turns on substantial transformation rather than just final packaging.
Why is the base duty on candles so low but my landed cost still jumped?
The base rate for finished candles in heading 3406 is low, so the base alone is usually not what hurts; the exact figure depends on the precise HS code and is shown in the representative rate box on this page. The increase typically comes from the China-era surcharges stacked on top of the base, and for paraffin candles from China, a possible antidumping duty as well. Your stacked rate depends on origin and the exact HS code.
Do reed diffusers and room sprays get taxed the same as candles?
Often no, because they usually classify outside the candle heading. Diffusers, scented oils, and room sprays frequently fall under Chapter 33 perfumery and room-deodorizer headings rather than the 3406 candle line, which can mean a different base duty. If you sell both candles and liquid fragrance, treat them as separate classifications rather than lumping them under one rate.
Is there really a special duty just on candles from China?
There is a long-standing US antidumping order on petroleum (paraffin) wax candles from China that can sit on top of the normal duty. Whether it applies turns on the wax composition and origin of your specific candles, so soy or beeswax candles, or candles poured outside China, are typically not covered. Confirm the wax type and country with your supplier, and the specifics with a customs professional, before assuming you are clear.
Do goods from South Korea really enter the US duty-free?
Most qualifying goods can, under the KORUS free-trade agreement. The key word is qualifying: duty-free treatment applies only to goods that meet KORUS rules of origin, not to everything shipped from Korea. Goods that do not qualify fall back to the standard tariff rate for their exact HS code. Confirm your specific product's eligibility before assuming the duty-free rate, and treat the rate shown on this page as a representative figure rather than a quote for your SKU. This is general guidance, not customs advice; verify with a licensed customs broker for your goods.
What makes a product count as 'Korean origin' for the KORUS duty break?
Origin is determined by KORUS rules of origin, not just by where the item ships from or where final assembly happens. Generally a good must be either wholly produced in Korea or substantially transformed there, often with a minimum share of qualifying materials or a required change in tariff classification. A product assembled in Korea from largely imported components may not qualify. Ask your supplier whether the item meets KORUS origin criteria and can supply origin documentation to support a claim. This is general guidance, not customs advice; verify with a licensed customs broker for your goods.
Is sourcing from South Korea cheaper overall than from China?
Not necessarily on unit cost. KORUS can remove or reduce the tariff line that Chinese imports may face, which helps landed cost, but Korean goods often carry higher base manufacturing prices and sometimes higher minimum order quantities. Whether Korea wins on total landed cost depends on your product, order volume, and whether the goods actually qualify for duty-free entry, with the applicable rate turning on the exact HS code. Run the full landed-cost comparison, duty plus unit price plus freight, rather than assuming the duty advantage alone makes Korea the cheaper option. This is general guidance, not customs advice; verify with a licensed customs broker for your goods.
MarginGuard watches every imported SKU and alerts you the moment a tariff change pushes one below your target margin — with the exact recovery price.
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