When we first published this article in May 2026, the International Emergency Economic Powers Act (IEEPA) was still in effect. Since then, the tariff landscape has shifted significantly, creating both opportunities and challenges for manufacturers, distributors, and industrial suppliers.
Today, manufacturers are navigating a transition away from IEEPA-related tariffs and toward a framework increasingly driven by Section 232 and Section 301 trade actions. While some tariff burdens have been reduced, others remain in effect or have expanded, requiring companies to continue paying close attention to sourcing, pricing, and supply chain decisions.
IEEPA Tariffs Reversed: Relief, But Not Immediate Recovery
One of the most significant developments in 2026 was the termination of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Following a Supreme Court ruling, the legal authority supporting many of those tariffs was overturned, leading U.S. Customs and Border Protection (CBP) to begin processing refund claims for eligible importers.
However, the refund process has proven to be more complicated than many businesses expected. Refunds are not automatic and depend on factors such as entry status, filing deadlines, and supporting documentation. Importers must generally work through customs brokers and trade compliance professionals to determine eligibility and pursue reimbursement.
At InSource Technologies, we have applied for refunds on applicable IEEPA-related tariffs and continue to monitor the process. While progress has been limited so far, those IEEPA-related tariff charges are being removed from our ongoing monthly customer billings.
While this change represents positive news for many importers, it does not signal the end of tariff-related costs throughout the manufacturing sector.
Section 232 Tariffs Continue to Impact Manufacturing
Despite the elimination of many IEEPA tariffs, Section 232 tariffs remain firmly in place and continue to affect manufacturers across a wide range of industries.
Originally implemented under national security provisions, Section 232 tariffs now impact products containing steel, aluminum, and copper, as well as certain machinery, industrial equipment, fabricated assemblies, and electrical products. Recent updates have expanded the scope of some of these tariffs beyond raw materials to include certain downstream products and equipment.
For manufacturers, this means that tariff exposure is no longer limited to commodity purchases. Imported machinery, production equipment, fabricated components, and supplier-provided assemblies may all carry tariff implications depending on their composition and country of origin.
As suppliers continue to experience higher import costs, many of these tariff-related expenses are still being passed through the supply chain, making Section 232 one of the most important cost considerations for industrial manufacturers in 2026.
Section 301 Tariffs Expanding Across Global Supply Chains
At the same time, Section 301 tariffs have become one of the U.S. government’s primary trade enforcement tools.
In July 2026, the Office of the United States Trade Representative (USTR) announced new Section 301 measures affecting imports from 60 economies. Depending on the country and product classification, these actions generally impose additional duties ranging from 10% to 12.5%.
Countries receiving a 10% tariff treatment include Canada, Mexico, India, Indonesia, Malaysia, the United Kingdom, Pakistan, Bangladesh, Cambodia, Sri Lanka, and several others. Products from many additional countries, including China, Vietnam, Thailand, Brazil, Australia, South Africa, Saudi Arabia, and the United Arab Emirates, are generally subject to a 12.5% tariff rate. Certain economies, including the European Union, Taiwan, Japan, South Korea, and Switzerland, are subject to special “net of MFN” duty structures that cap total tariff exposure.
These actions are not universal across all products. Numerous exemptions exist, and some products already covered by Section 232 tariffs receive special treatment. As a result, the actual impact varies based on HTS classification, product type, and sourcing country.
What Manufacturers Should Be Doing Now
While tariff regulations will likely continue to evolve, manufacturers can take several practical steps to reduce risk and improve visibility:
- Review supplier country-of-origin information.
- Evaluate tariff exposure by product category.
- Monitor landed costs and margin impacts.
- Consider United States sourcing strategies.
- Work closely with customs brokers and trade compliance professionals.
- Stay informed regarding future Section 232 and Section 301 developments.
The companies best positioned to navigate today’s environment are those treating tariffs as a strategic supply-chain issue rather than simply a purchasing issue.
Looking Ahead
The story of tariffs in 2026 is no longer just about whether tariffs are increasing or decreasing. Instead, manufacturers must navigate a changing environment in which some tariffs are being removed, others are being expanded, and trade enforcement remains active.
At InSource Technologies, we continue to monitor developments closely, communicate with suppliers, and evaluate potential impacts to help our customers make informed decisions. We remain committed to transparency and will continue providing updates as significant changes occur