Calculate Your Landed Cost
Adjust values for Passenger Vehicles from Paraguay
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 passenger vehicles follows the US stacking formula: the MFN base rate of 2.5%, plus Section 232 duty of 25%. The special tariff layer (the highest of Section 122, Section 232, or bilateral rates) is 25%, which combines with the MFN base to produce a subtotal before Section 301 duties. Adding all layers yields a total tariff rate of 27.5%. On a customs value of $10,600.00, this translates to total duties of $2,915.00, plus the Merchandise Processing Fee of $36.72 and Harbor Maintenance Fee of $13.25. The total landed cost including all fees reaches $13,564.97.
Trade Context
The United States imported $1B in goods from Paraguay in 2024, making it a significant trading partner in the South America region. Key import categories from Paraguay include fresh produce, food, lumber wood products, reflecting the country's industrial and agricultural strengths. Passenger Vehicles 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 Paraguay.
What Happens When Section 122 Expires?
Section 122 does not affect imports of passenger vehicles from Paraguay because products subject to Section 232 tariffs are excluded from the Section 122 surcharge. The 25% Section 232 duty applies independently and will remain in effect regardless of Section 122's expiration on July 24, 2026. Importers of passenger vehicles should plan around the Section 232 rate as the primary additional tariff layer.
Alternative Sourcing Countries for Passenger Vehicles
Importers looking for lower tariff costs on passenger vehicles may consider sourcing from Argentina (effective rate 15%, saving approximately 12.5 percentage points); Brazil (effective rate 50%); Uruguay (effective rate 15%, saving approximately 12.5 percentage points). Compared to Paraguay's total effective rate of 27.5%, 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 Paraguay
Section 232 steel/aluminum tariff increased to 50%
Section 122 uniform 15% surcharge takes effect
Frequently Asked Questions
The current total tariff rate on Passenger Vehicles from Paraguay is 27.5%. This is composed of the following layers: MFN base rate: 2.5%; Section 232 duty: 25%. The effective tariff rate after all layers is 27.5%.
For a $10,000 shipment of Passenger Vehicles from Paraguay, you can expect to pay approximately $2,750.00 in total duties at the current rate of 27.5%. 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 $12,750.00, representing an effective cost increase of 27.5% over the FOB price. Use our tariff calculator for precise calculations based on your specific shipment value and shipping method.
No, Passenger Vehicles is subject to Section 232 tariffs instead of Section 122. Products covered under Section 232 national security tariffs are excluded from the Section 122 surcharge. The Section 232 rate of 25% applies to passenger vehicles regardless of origin country.
Section 122 does not currently apply to Passenger Vehicles from Paraguay, so its expiration on July 24, 2026 would not directly change the tariff cost. The current tariff rate of 27.5% would remain based on other applicable tariff layers. However, broader trade policy changes surrounding the Section 122 expiration could affect overall tariff structures.
For Passenger Vehicles, alternative sourcing countries to consider instead of Paraguay include Argentina (effective rate: 15%), Brazil (effective rate: 50%), Uruguay (effective rate: 15%). Compared to Paraguay's total effective rate of 27.5%, 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.