Tariff Refunds for Industrial Equipment Importers Importers

Industrial equipment importers who paid IEEPA tariffs on machinery and components from China or Canada may qualify.

Industrial Equipment: IEEPA Tariff Refunds

U.S. manufacturers and distributors that import industrial machinery, manufacturing equipment, tools, and components from China, Canada, or Mexico during the IEEPA tariff period may be eligible for some of the largest per-importer refund claims in the CAPE program.

Equipment Categories Affected

Manufacturing machinery: CNC machines, injection molding equipment, metalworking machinery, and automated assembly equipment (HTS Chapter 84). Many U.S. manufacturers depend on Chinese or Canadian machinery suppliers.

Electric motors and generators: IEEPA tariffs applied to Chinese-origin motors and electrical equipment (HTS Chapter 85), affecting companies across manufacturing, HVAC, and industrial automation.

Hydraulic and pneumatic equipment: Compressors, pumps, valves, and fittings (HTS Chapter 84) from Chinese suppliers.

Hand and power tools: Canadian-manufactured tools (affected by early IEEPA Canada tariffs) and Chinese-manufactured power tools.

Electronic components for industrial use: Control systems, PLCs, sensors, and industrial computers (HTS Chapter 85).

Large Refund Potential

Industrial equipment has among the highest per-entry customs values of any import category. A single CNC machine or industrial robot may have a customs value of $500,000 to several million dollars. At IEEPA tariff rates of 25-145%, the tariff on a single equipment entry could range from $125,000 to over $1 million.

Companies that purchased capital equipment from Chinese or Canadian suppliers during 2025 should prioritize identifying these entries — they represent potentially the most significant individual refund claims in the CAPE program.

Complexity Considerations

Industrial equipment imports often involve complex customs situations:

Engineering-to-order equipment may have unique HTS classifications requiring expert classification review
Parts and components shipments may span multiple HTS chapters
Bonded manufacturing arrangements may affect which duties are refundable
First-sale valuation elections may have been made that affect the refund base

For most industrial equipment importers, working with a customs attorney or specialized recovery firm is advisable given the complexity and the size of the potential refund.

IEEPA Tariffs by Country — Canada and China were primary sources for industrial equipment
DIY vs. Working with a Recovery Partner — Large refunds warrant professional assistance
Tax Implications of Tariff Refunds
Check Eligibility