Consumer electronics sit near the center of the current tariff era because so much of the category is sourced from China, where trade-remedy layers can stack on top of the base HTS duty rather than replacing it. A finished device that once entered at a low single-digit rate can carry a heavier effective burden once a China-specific Section 301 add-on lands on the same customs value. For a sub-$100 gadget sold on thin Shopify margins, that swing can be the difference between a healthy SKU and one quietly selling underwater.
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 $60 device from South Korea at a 10% stacked rate, that means charging $60.50 to hold a 40% margin. Round to a clean price point and test it; the point is to stop selling underwater.
The base duty is set by the exact 10-digit code your product falls under in HTS Chapter 85 (electrical machinery and equipment) — and for some computing and machinery-adjacent items, Chapter 84. Within Chapter 85 the rate varies by what the device actually is: many finished consumer electronics enter at a relatively low rate or even free, while specific component and sub-assembly lines can carry their own duty. What tends to move your number most is often not the headline base rate; it is the trade-remedy layers keyed to origin and material — a China-origin Section 301 add-on, or a Section 232 metals charge that a metal-bodied unit may pick up — potentially stacking on the same entered value. The attributes that usually decide it are precise function (is it a standalone device, an accessory, or a bare component), any embedded power source, and country of origin. Because those layers can add together, the per-SKU rate depends on your specific HS code, not a category average.
A common pitfall for electronics sellers is treating an embedded lithium-ion cell or power source as part of the device when it may have its own dutiable line. A power bank, a device shipped with a battery, and a standalone battery can classify differently, and the battery line (lithium-ion accumulators generally fall under heading 8507) may carry its own base duty and its own Section 301 exposure that a single 'finished electronics' guess can miss. A similar trap hits accessories: a 'wireless charger' and a 'power bank' may sit in different subheadings with different rates, so classifying by marketing name instead of function can understate the duty. It is worth pulling the actual 10-digit code for each SKU rather than assuming the whole unit inherits one rate, and confirming borderline cases with a customs broker.
The origin-specific layers are often where electronics merchants can find relief, because the heaviest add-ons generally apply only to China-origin goods — moving final assembly to a country such as Vietnam, Thailand, India, or Mexico can drop the Section 301 portion. The catch specific to this category is substantial-transformation rules: assembling a Chinese board into a housing abroad may not, on its own, change the country of origin, so it is worth confirming where the device is genuinely transformed (a customs professional can help) before assuming the China surcharge is gone. Section 232 metal charges are generally tied to the goods rather than origin, so a metal-cased unit may keep that exposure wherever it is built. Before committing to a re-source, model the landed cost under each candidate origin against the actual base HS rate, since the base duty travels with the code while the remedy layers can move.
Do most finished electronics from China just pay the ~3% base rate?
Not necessarily — the roughly 3% category base rate is only the first layer. For China-origin goods, a Section 301 add-on can stack on the same customs value, so the total may land well above the base figure. Your real per-SKU number depends on the exact 10-digit code, so it is worth confirming it against the live USITC schedule (and with a customs professional) rather than pricing off the base rate alone.
Why does the battery inside my device matter for duty?
Lithium-ion cells generally have their own tariff line (typically under heading 8507) with a base duty and potential Section 301 exposure separate from the device's. If you import the battery or power bank as the dutiable article, that line may drive the rate rather than the finished-electronics code you might expect. Power banks, devices shipped with cells, and bare batteries can each classify differently, so it helps to check which one you are actually entering and confirm the code.
If I move assembly out of China, does the China surcharge disappear?
Sometimes, but generally only if the country of origin actually changes under substantial-transformation rules. Simply assembling Chinese components in a third country may not shift origin, which can mean the China-specific add-on still applies. Section 232 metal charges may also remain regardless of origin, so it is worth verifying the real country of origin with a customs professional before assuming a re-source removes the full stack.
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.
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