HS Code 7601 Tariff: Taiwan to United States
Current tariff rates for unwrought aluminum: (HS code 7601) imported from Taiwan to the United States.
Hedge tariff risk: Trade tariff prediction markets on Ballast Markets to lock in costs and protect margins against future tariff changes.
Current Tariff Rate (2025)
| Component | Rate | Details | |-----------|------|---------| | MFN (Column 1) | 0% | Most-Favored Nation base rate |
| Section 232 | 10% | Steel/aluminum national security | | Total ETR | 10% | Effective Tariff Rate |
Trade Volume (2023)
No recent Census Bureau trade data available for this HS code + country combination. This may indicate:
- Low or zero trade volume
- New tariff classification
- Trade data aggregated under different HS code
Tariff History
- 2018-03-23: Section 232 tariff imposed (10%)
Landed Cost Impact
Example Calculation for HS 7601 from Taiwan:
| Cost Component | Amount | % of Total | |----------------|--------|------------| | FOB Price | $1000 | 72% | | Ocean Freight | $150 | 11% | | Insurance | $15 | 1% | | Customs Duties (10%) | $100 | 7% | | Inland Transport | $120 | 9% | | Total Landed Cost | $1385 | 100% |
Tariff Cost Impact: Without tariffs, landed cost would be $1285 → tariffs add $100 (8% increase).
Comparison to Alternative Sources
| Country | Typical Tariff | Price Advantage | |---------|---------------|-----------------| | Taiwan | 10% | Baseline | | Mexico | 0% (USMCA) | -10% tariff cost | | Canada | 0% (USMCA) | -10% tariff cost | | China | 10% | Equal | | Vietnam | 0% MFN | -10% vs Taiwan |
Note: Actual tariff rates vary by specific product classification and country-specific trade agreements. Verify with customs broker.
Hedging Strategies
1. Tariff Prediction Markets
Problem: Tariff rates can change with 30-90 days notice via USTR actions.
Solution: Tariff prediction markets allow you to hedge:
Example:
- Exposure: $10M annual HS 7601 imports from Taiwan
- Current tariff cost: $1.0M (10%)
- Risk: Tariffs increase to 35% → additional cost
- Hedge: Buy "US-Taiwan Tariff > 20% by Q4 2025" position
Learn more: How to Hedge Tariff Risk
2. Sourcing Diversification
Strategy: Split sourcing between Taiwan and USMCA countries to hedge tariff volatility.
Example Mix:
- 60% from Taiwan (10% tariff)
- 40% from Mexico (0% tariff via USMCA)
- Blended rate: 6% (vs. 10% all-Taiwan)
- Annual savings: $0.0B
3. Pre-Tariff Stockpiling
If tariff increase expected:
- Order 3-6 months inventory before effective date
- Cost: Increased working capital (inventory holding)
- Benefit: Lock in current 10% rate vs. potential 35%
Related Tariff Pages
- HS Code 7601 Overview - Product classification guide
- Taiwan-US Trade Profile - Bilateral trade overview
- Section 301 Tariffs Explained - China trade actions
- USMCA Qualification - 0% tariff requirements
Sources
- U.S. International Trade Commission (USITC) HTS Database (accessed 2025-11-04)
- USTR Section 301/232 Tariff Lists
Risk Disclosure
This content is for informational and educational purposes only and should not be construed as financial, legal, or investment advice. Tariff rates are subject to change based on government policy and trade negotiations. Verify current rates with U.S. Customs and Border Protection (CBP) or qualified customs brokers before making sourcing decisions. Prediction markets involve risk of loss.
Disclaimer
Ballast Markets provides this content as a free educational resource for the global trade community. Tariff data is sourced from USITC and USTR but may contain errors or be outdated. For compliance purposes, always verify rates with official sources. Trade statistics from Census Bureau may have reporting delays.
Last updated: 2025-11-04