Calculate Your Landed Cost
Adjust values for Power Generation Equipment from China
How Tariffs Stack
Each layer adds to the total cost — amounts based on customs value
Full Landed Cost Breakdown
Based on a $10,000 ocean shipment (FOB value)
How the Tariff Rate is Calculated
The tariff structure for power generation equipment follows the US stacking formula: the MFN base rate of 2.5%, plus Section 122 surcharge of 15%, plus Section 301 duty of 25%. The special tariff layer (the highest of Section 122, Section 232, or bilateral rates) is 15%, which combines with the MFN base to produce a subtotal before Section 301 duties. Adding all layers yields a total tariff rate of 42.5%. On a customs value of $10,600.00, this translates to total duties of $4,505.00, plus the Merchandise Processing Fee of $36.72 and Harbor Maintenance Fee of $13.25. The total landed cost including all fees reaches $15,154.97.
Trade Context
The United States imported $427B in goods from China in 2024, making it a significant trading partner in the Asia-Pacific region. Key import categories from China include consumer electronics, computers servers, clothing garments, reflecting the country's industrial and agricultural strengths. Power Generation Equipment represents an important segment of this trade relationship, with demand driven by both price competitiveness and product availability in the US market. The bilateral trade volume underscores the economic significance of tariff policy decisions affecting imports from China.
What Happens When Section 122 Expires?
Section 122 is scheduled to expire on July 24, 2026, after its 150-day statutory limit. If Section 122 expires without renewal, the tariff rate on power generation equipment from China would drop from 42.5% to approximately 27.5%. This 15% reduction could significantly lower landed costs for importers. However, Congress or the President may act to extend or replace Section 122 before its expiration date.
Alternative Sourcing Countries for Power Generation Equipment
Importers looking for lower tariff costs on power generation equipment may consider sourcing from Vietnam (effective rate 18%, saving approximately 24.5 percentage points); India (effective rate 18%, saving approximately 24.5 percentage points); Taiwan (effective rate 15%, saving approximately 27.5 percentage points). Compared to China's total effective rate of 42.5%, these alternatives offer potential cost savings depending on the specific product classification and applicable trade agreements. Each alternative carries its own tariff structure, so importers should calculate the full landed cost before switching suppliers.
Tariff Timeline for China
Section 122 15% surcharge stacks on all Chinese imports
Semiconductors from China raised to 50% under S301
EVs raised to 100%, solar to 50% under 2024 S301 review
Section 301 List 4A reduced to 7.5% under Phase One deal
Section 301 List 3 raised from 10% to 25% on $200B
Section 301 List 2 tariffs (25%) on $16B take effect
Section 301 List 1 tariffs (25%) on $34B of Chinese goods take effect
Frequently Asked Questions
The current total tariff rate on Power Generation Equipment from China is 42.5%. This is composed of the following layers: MFN base rate: 2.5%; Section 301 duty: 25%; Section 122 surcharge: 15%. The effective tariff rate after all layers is 42.5%.
For a $10,000 shipment of Power Generation Equipment from China, you can expect to pay approximately $4,250.00 in total duties at the current rate of 42.5%. Additional fees include the Merchandise Processing Fee (MPF) and, for ocean shipments, the Harbor Maintenance Fee (HMF). The total landed cost for a $10,000 order would be approximately $14,250.00, representing an effective cost increase of 42.5% over the FOB price. Use our tariff calculator for precise calculations based on your specific shipment value and shipping method.
Yes, Section 122 adds 15% to the tariff on Power Generation Equipment from China. This surcharge was enacted on February 24, 2026 under Section 122 of the Trade Act and applies uniformly to imports from most countries. It stacks on top of the MFN base rate of 2.5%, contributing to the total rate of 42.5%.
Section 122 is set to expire on July 24, 2026 after its 150-day statutory limit. If it expires without renewal, the tariff on Power Generation Equipment from China would drop from 42.5% to 27.5%. This 15% reduction would meaningfully lower landed costs for importers. Congress or the President may extend or replace Section 122, so importers should monitor developments.
For Power Generation Equipment, alternative sourcing countries to consider instead of China include Vietnam (effective rate: 18%), India (effective rate: 18%), Taiwan (effective rate: 15%). Compared to China's total effective rate of 42.5%, these alternatives may offer lower landed costs depending on the specific HTS classification. Use our country comparison tool to see a detailed side-by-side analysis of tariff costs.