If you’re a US-based business planning to import machinery from China—wet wipes machines, packaging lines, sanitary pad equipment, or any industrial gear—July 24, 2026 is a date you need to know.
That’s when the Section 122 tariff (a 10% surcharge on most non-EU imports) reaches its statutory sunset and expires.
What replaces it? How will it affect your machinery purchase? And what should you do if you’re in the middle of a procurement project right now?
I’m Maggie, and I’ve been helping US buyers source machinery from China for 5 years. Here’s what’s happening with tariffs this month, what it means for your landed costs, and how to navigate the uncertainty.
What is Section 122, and Why Does It Matter?
Section 122 was a broad-based 10% tariff applied to most imports into the US (excluding those from the EU and a few other exempted countries). It was enacted with a built-in expiration date: July 24, 2026.
For machinery buyers, this meant:
- If you imported a wet wipes machine from China with an FOB price of USD 100,000, you paid an additional USD 10,000 in Section 122 tariff on top of any other applicable duties.
Now that tariff is expiring. But the replacement isn’t necessarily better.
What’s Replacing Section 122? (Proposed Section 301 Expansion)
The US Trade Representative (USTR) has proposed replacing Section 122 with an expanded Section 301 tariff of 12.5% on imports from 46 countries, including:
- China
- Vietnam
- India
- Thailand
- Japan
- South Korea
- Taiwan
- Indonesia
- Malaysia
- Mexico (depending on final implementation)
The USTR faces a July 20 completion deadline for these Section 301 investigations, with final rules expected to take effect shortly after Section 122 expires (TariffsTool, July 2026).
What this means:
- The tariff rate goes from 10% (Section 122) to 12.5% (proposed Section 301)—a 2.5-point increase.
- The geographic scope narrows slightly (only 46 countries instead of nearly all non-EU imports), but it still covers most major machinery suppliers. But Wait—There’s Another Layer for Chinese Machinery
If you’re importing machinery from China, Section 301 isn’t new. There’s already an existing Section 301 tariff on Chinese goods that’s been in place since 2018.
For industrial machinery (HS Chapters 84–85, which includes wet wipes machines, packaging equipment, sanitary product lines, etc.), the current Section 301 rate is 25% for items on Lists 1–3 (Suaid Global, July 2026).
So here’s the confusing part:
- If your machinery falls under the existing 25% Section 301 (Lists 1–3), you were already paying that plus the 10% Section 122 surcharge = 35% total.
- After July 24, the 10% surcharge goes away, but the 25% Section 301 stays = 25% total.
- That’s actually a 10-point drop for Chinese machinery on Lists 1–3.
But:
- If your machinery wasn’t on Lists 1–3 (and was only subject to the 10% Section 122), it may now face the new 12.5% Section 301—a 2.5-point increase.
Confused? You’re not alone. The key is knowing which list your machinery falls under.
How to Find Out What You’ll Actually Pay
Step 1: Confirm your HS code
Every product has a Harmonized System (HS) code that determines which tariffs apply. For machinery:
- Wet wipes machines: Typically HS 8422.30 or 8479.89
- Sanitary pad machines: Typically HS 8479.89
- Packaging machinery: Varies (8422.x, 8441.x, 8443.x)
If you don’t know your exact HS code, ask your supplier or a customs broker. Getting this wrong can cost you thousands.
Step 2: Check which Section 301 list (if any) applies
The USTR maintains a searchable database of products subject to Section 301 tariffs:
- List 1: USD 34 billion worth of Chinese goods, 25% tariff
- List 2: USD 16 billion, 25% tariff
- List 3: USD 200 billion, 25% tariff (includes most machinery)
- List 4: USD 300 billion, 7.5% tariff (mostly consumer goods)
Most industrial machinery from China is on List 3 (25%).
Step 3: Confirm current and post-July-24 tariff
Use a tool like TariffsTool.com or consult a customs broker to get the exact rate for your HS code before and after the transition.
Real Cost Example: Wet Wipes Machine from China
Let’s say you’re importing a fully automatic wet wipes machine:
- FOB price: USD 150,000
- HS code: 8479.89.97 (on Section 301 List 3)
Before July 24, 2026:
- Section 301 tariff (25%): USD 37,500
- Section 122 tariff (10%): USD 15,000
- Total tariff: USD 52,500
- Landed cost (FOB + tariff, excluding shipping): USD 202,500
After July 24, 2026:
- Section 301 tariff (25%): USD 37,500
- Section 122 tariff: USD 0 (expired)
- Total tariff: USD 37,500
- Landed cost: USD 187,500
In this case, you save USD 15,000—the 10% Section 122 surcharge is gone.
But:
If your machine wasn’t on List 3, and was only subject to the 10% Section 122:
Before July 24:
- Section 122 (10%): USD 15,000
- Total tariff: USD 15,000
- Landed cost: USD 165,000
After July 24 (if new 12.5% Section 301 applies):
- Section 301 (12.5%): USD 18,750
- Total tariff: USD 18,750
- Landed cost: USD 168,750
You pay USD 3,750 more.
The impact depends entirely on your HS code and which tariff list applies.
What Should US Buyers Do Right Now?
- If you’re in the middle of a machinery purchase:
- Get a tariff ruling from a customs broker ASAP. Don’t guess. A USD 150,000 machine with the wrong tariff assumption can cost you USD 15,000+ in unexpected fees.
- Ask your supplier for the exact HS code they’ll declare on the commercial invoice. Make sure it matches what you’re expecting.
- If delivery is close to July 24, consider whether it’s worth rushing to clear customs before the transition (if you’ll save money) or delaying slightly (if the new rate is lower).
- If you’re budgeting for a future purchase:
- Don’t use old tariff rates. If your spreadsheet says “10% import duty,” that’s outdated after July 24.
- Add a buffer. The Section 301 expansion is still being finalized. Rates could shift slightly, or additional products could be added to lists. Budget 15–30% for tariffs to be safe.
- Consider sourcing from non-China suppliers (Vietnam, Thailand, Taiwan) if tariffs are a major cost driver. But be aware: the proposed 12.5% Section 301 hits many of these countries too.
- If you’re exploring alternatives to Chinese suppliers:
Vietnam, Thailand, and India are popular alternatives for machinery buyers looking to avoid China tariffs. But under the proposed Section 301 expansion, imports from these countries would also face 12.5% tariffs.
What you’d actually save:
- Current China tariff (for List 3 machinery): 25%
- Proposed tariff for Vietnam/Thailand/India: 12.5%
- Net savings: 12.5 points
That’s a real reduction, but it’s not tariff-free. You’ll still pay USD 18,750 on a USD 150,000 machine from Vietnam, versus USD 37,500 from China.
Also factor in:
- Lead times (Vietnam suppliers may have longer backlogs)
- Component quality (Chinese suppliers often use Japanese/German components; alternatives may vary)
- After-sales support (fewer spare parts inventories outside China) Will These Tariffs Change Again?
Possibly. Here’s what to watch:
- Exemption requests: Some industries (agriculture equipment, HVAC systems) saw partial relief in June 2026 (tariffs reduced from 25% to 15% for specific categories). Packaging and sanitary machinery haven’t received exemptions yet, but that could change if industry groups lobby hard.
- Trade negotiations: If US-China trade talks resume, tariffs on Lists 1–3 could be reduced or removed. But there’s no active negotiation happening as of July 2026.
- Inflation and domestic politics: High tariffs raise costs for US manufacturers who import production equipment. If inflation ticks up, there may be political pressure to lower import duties.
Bottom line: Plan for current/proposed tariffs, but stay flexible. Things can change.
FAQ: US Tariff Changes for Machinery Buyers
Q: If I order a machine now but it ships after July 24, which tariff applies?
A: The tariff is based on the date of entry (when it clears customs), not the order date or ship date. If it clears customs on July 25, the new post-Section-122 rate applies.
Q: Can I delay customs clearance to get a lower rate?
A: Technically yes, but you’ll pay port storage fees for every day the container sits there. Only delay if the tariff savings exceed storage costs.
Q: What if I’m importing from a US free-trade partner (Mexico, Canada)?
A: Machinery from Mexico and Canada qualifying under USMCA (formerly NAFTA) is generally duty-free. But the proposed 12.5% Section 301 may apply to certain Mexican goods depending on final rules.
Q: Do I pay tariffs on the FOB price or CIF price?
A: Tariffs are calculated on the customs value, which is typically the CIF (Cost, Insurance, Freight) price at the US port. So tariffs apply to FOB + shipping + insurance.
How to Get an Accurate Landed Cost Quote
When requesting quotes from suppliers, ask for:
- FOB price (machine cost at the Chinese port)
- CIF price (machine + shipping + insurance to your US port)
- HS code the supplier will declare
- Estimated tariff rate based on that HS code (though you should verify this yourself)
Then calculate:
- Tariff = CIF price × tariff rate
- Customs clearance fees = ~USD 300–500
- Inland transport (port to your facility) = varies
Total landed cost = CIF + tariff + clearance + inland freight
Don’t sign a contract until you have this full picture.
Current Market Conditions (July 2026)
- Tariff uncertainty is the biggest issue. US buyers are delaying large machinery purchases until the post-July-24 rules are finalized.
- Freight costs from China to the US have stabilized around USD 5,000–7,000 per 40ft container (West Coast) and USD 8,000–10,000 (East Coast) as of mid-July 2026.
- Lead times are normal: 8–12 weeks for manufacturing, 18–25 days for sea freight. No major port backlogs on the US side. Next Steps
If you’re planning to import machinery from China (or any of the 46 countries covered by the proposed Section 301 expansion):
- Confirm your exact HS code and current/post-July-24 tariff rate with a customs broker. Don’t guess.
- Adjust your budget to reflect the new tariff structure. Old quotes may no longer be accurate.
- Get a CIF quote from your supplier so you know the full customs value before calculating tariffs.
Need help navigating US import duties, evaluating suppliers, or getting a realistic landed-cost quote? I work with buyers across the US and can walk you through the current tariff landscape.
Get a quote in 24 hours: Contact us at sales@zhenbaotrading.com or WhatsApp +852 9702 5284