Key takeaways
- On Feb. 20, 2026, the Supreme Court struck down the broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA). They were replaced by a temporary 10% global tariff under Section 122, which expired July 24, 2026.
- Since then, Section 301 tariffs of 10% or 12.5% apply to imports from 60 economies, with some product exemptions. Steel, aluminum, copper, autos, lumber and other goods still face separate Section 232 tariffs.
- The average effective U.S. tariff rate was about 7.1% in August 2026, up from 6.7% in July and 2.3% in January 2025, according to the Penn Wharton Budget Model.
- About $126 billion in IEEPA refunds had been certified by Oct. 2, 2026, but they go to the importers that paid them, not directly to shoppers.
Tariffs are taxes on imported goods, paid by the U.S. company that brings them into the country. Much of that cost is usually passed on to consumers through higher prices, so tariffs affect what you pay for things like electronics, cars, clothing, appliances and building materials, and they can influence inflation and interest rates.
U.S. trade policy has changed several times since 2025. Here’s where tariffs stand as of November 2026, how they affect your budget, savings and loans, and what you can do about it.
Tariff timeline: 2025 to 2026
| Date | What happened |
|---|---|
| 2025 | Broad new tariffs on most trading partners under IEEPA; Section 232 steel and aluminum tariffs raised to 50% in June 2025. |
| Feb. 20, 2026 | The Supreme Court ruled the IEEPA tariffs unlawful; they were removed later that month. |
| Late Feb.–July 24, 2026 | A temporary 10% global tariff under Section 122 replaced them. By law it could last only 150 days. |
| From July 24, 2026 | Section 301 tariffs of 10% or 12.5% on imports from 60 economies, with product exemptions and exemptions for many USMCA-qualifying goods. |
| July–Sept. 2026 | A 25% Section 301 tariff on Brazil and a 50% Section 338 tariff on select Canadian goods took effect. |
| August 2026 | Average effective tariff rate about 7.1%; China about 24.3%, the highest among major trading partners. |
Customs had certified about $126 billion in IEEPA refunds to importers through Oct. 2, 2026, roughly 76% of the $166 billion collected, according to the Penn Wharton Budget Model.
Which tariffs are in effect now
A Congressional Research Service fact sheet dated Oct. 8, 2026, lists these major active tariffs:
| Tariff authority | What it covers | Rate |
|---|---|---|
| Section 301 | Imports from 60 economies (with exemptions) | 10%–12.5% |
| Section 232 | Steel and aluminum | 10%–50%, by product and country |
| Section 232 | Cars and auto parts | 15%–25%, with some USMCA exceptions |
| Section 232 | Timber and lumber | 10%–25%; some rates rise Jan. 1, 2027 |
| Section 232 | Patented pharmaceuticals; certain semiconductors | 10%–100%; 25% |
| Section 338 | Select goods from Canada | 50% |
Duty-free treatment for low-value packages also remains suspended, so small orders shipped from overseas retailers can carry import charges. Several new investigations are pending, and the USMCA review could change rates for Canada and Mexico.
How tariffs affect your money
| Area | Possible effect | What you can do |
|---|---|---|
| Prices | Higher costs for imported goods and products made with imported parts or steel | Compare brands, buy refurbished, time big purchases around sales |
| Cars | Higher prices and repair costs on many vehicles and parts | Get loan preapproval and compare total cost; see our auto loan guide |
| Inflation and interest rates | Tariff-driven inflation can keep the Fed from cutting rates | Lock in good savings and CD rates while they last |
| Jobs and investments | Some industries gain, others lose; markets can swing on trade news | Stay diversified; avoid reacting to headlines |
| Home costs | Higher prices for lumber, steel, appliances and fixtures | Get several quotes and build a buffer into renovation budgets |
Worked example: why a 10% tariff doesn’t mean a 10% higher price
Tariffs are charged on the import value, not the store price. Say a retailer imports a TV for $400 and sells it for $800. A 10% tariff adds $40 at the border. If the full $40 is passed on, the shelf price rises to $840, which is 5% more. At 12.5%, the tariff is $50, or about 6.3% on the retail price. Retailers may also absorb part of the cost, or add a markup on top of it, so actual price changes vary.
What tariffs mean for interest rates
When tariffs push prices up, the Federal Reserve has less room to cut rates. The Fed held its benchmark rate at 3.75% to 4.00% on Oct. 28, 2026, with two officials favoring a hike. That helps savers, with top high-yield savings accounts paying around 4% APY, but keeps borrowing costs high; the prime rate is 7.00%. Read what the Fed’s latest decision means for your money.
7 ways to protect your budget
- Track where prices are rising in your own spending and adjust your budget.
- Don’t panic-buy. Stocking up on big-ticket items early can cost more than any tariff increase.
- Keep an emergency fund in a high-yield savings account so price shocks don’t go on a credit card.
- Lock in rates with CDs if you think rates may fall later.
- Pay down variable-rate debt, such as credit cards, which stays expensive while rates are high.
- Stay invested and diversified. Trade news moves markets in the short term; see our investment strategies guide.
- Use inflation protection such as I bonds and TIPS for part of your savings. Learn about inflation-linked bonds and check prices over time with our inflation calculator.
Tip: Series I savings bonds bought from November 2026 through April 2027 earn a 5.51% composite rate, including a 1.40% fixed rate that lasts for the life of the bond. You can buy up to $10,000 per person per year electronically at TreasuryDirect.
What to watch next
- Dec. 4, 2026: New Section 232 tariffs of 10% to 15% on polysilicon, a key solar-panel material, are scheduled to take effect.
- Jan. 1, 2027: Higher Section 232 rates on certain timber and lumber products are scheduled, which could affect home building and renovation costs.
- Pending investigations: Section 301 cases on manufacturing overcapacity, China’s Phase One trade-deal compliance and other issues, plus Section 232 reviews of robotics, industrial machinery and medical equipment, could lead to new tariffs.
- USMCA review: Talks with Canada and Mexico could raise or lower tariffs on goods from the two largest U.S. trading partners.
Frequently asked questions
Who pays tariffs?
The U.S. importer pays the tariff to Customs. Businesses often pass some or all of the cost to consumers through higher prices.
Will I get a refund after the Supreme Court tariff ruling?
Refunds go to the importers that paid the IEEPA tariffs. Consumers don’t receive them directly, though some companies may lower prices.
Are tariffs still in effect in 2026?
Yes. Section 301 tariffs of 10% or 12.5% apply to imports from 60 economies, and Section 232 tariffs still cover steel, aluminum, autos, lumber and other goods. Trade policy changes often, so check the latest news.
Do tariffs cause inflation?
They raise prices of affected goods, which can lift overall inflation, especially in the months after new tariffs take effect.
Do tariffs affect my mortgage rate?
Indirectly. If tariffs keep inflation elevated, the Fed may hold rates higher and bond yields can rise, which tends to keep mortgage rates up.
Sources: Penn Wharton Budget Model, “Effective Tariff Rates and Revenues” (Sept. 9 and Oct. 14, 2026); Congressional Research Service, “Active Presidential Tariff Actions in 2026” (Oct. 8, 2026); U.S. Supreme Court ruling on IEEPA tariffs (Feb. 20, 2026); Federal Reserve FOMC statement (Oct. 28, 2026); TreasuryDirect I bond rates (Nov. 1, 2026). Trade policy changes frequently; status checked Nov. 2, 2026. Calculations by FinInfoBlog. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.