What's the Tariff on Power Tools?
Power tools from China and Mexico.
Current Tariff Rate
34%
Pre-2025 Rate
0%
Rate Increase
+34pp
Price Impact
+34%
+$61
Real-World Price Impact
Before Tariffs
$179
Cordless drill kit
After Tariffs
$240
Cordless drill kit
That's $61 more per unit — a 34% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Power tools face a 34% IEEPA tariff that threatens America's DIY culture and construction industry simultaneously. China manufactures approximately 85% of all power tools sold in the US, including many sold under American brand names — Stanley Black & Decker, Milwaukee (TTI), and Craftsman all rely heavily on Chinese assembly. The tariff creates a particularly acute problem for the construction sector, where tools are consumable business expenses replaced frequently. A $240 cordless drill kit (up from $179) multiplied across a contractor's entire tool inventory represents thousands in additional costs passed to homeowners. Milwaukee Tool (owned by Hong Kong's TTI) has been expanding US production in Mississippi and Wisconsin, and DeWalt maintains some domestic manufacturing, but the scale of Chinese production dwarfs reshoring efforts. Mexico is an emerging alternative, with Bosch and some TTI production shifting to Monterrey.
📦 Supply Chain
Primary Origin
CN
Made in USA
15%
Import Volume
$5.1B
Alternatives
Mexico (Bosch, some TTI), domestic Milwaukee/DeWalt plants
📅 Tariff Timeline
2018
Section 301 List 3 — power tools included
10%2019
Rate increased on List 3
25%2025
IEEPA replaces at higher rate
34%👥 Consumer Impact
Households Affected
55M
Annual Cost Per Household
$65
💡 Did You Know?
- •Stanley Black & Decker, America's largest tool company, manufactures roughly 60% of its products in China
- •Milwaukee Tool opened a new 500,000 sq ft US factory in 2023, but it covers less than 10% of the brand's total output
- •Lithium-ion batteries for cordless tools face their own separate 54% tariff, creating double cost pressure
Tariff Details
- HTS Code
- 8467.11
- Current Rate
- 34%
- Pre-2025 Rate
- 0%
- Tariff Type
- IEEPA
Legal Authority
IEEPA Executive Order (April 2, 2025)
Effective: April 2, 2025
"Liberation Day" — broad tariffs under the International Emergency Economic Powers Act
The tariff on Power Tools is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 34% tariff on Power Tools is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 34% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $179 → $240
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