The following tariff authorities have been delegated to and are currently being used by the executive branch
Most-favored Nation (MFN) tariffs
Are “baseline” or standard rates applied to goods when a country joins the WTO or negotiates bilateral agreements
Also includes provisions for increasing tariff rates to prevent or remedy market disruptions
International Emergency Economic Powers Act or IEEPA tariffs: Grants president broad authority to regulate international economic transactions during a declared national emergency in response to an “unusual and extraordinary threat” to U.S. national security, foreign policy, or economy, originating substantially outside the United States
Section 301 tariffs: This authorizes tariffs or restrictions on imports from countries engaging in “unreasonable or discriminatory” practices that burden U.S. commerce, after an investigation by the U.S. Trade Representative (USTR) with public input
Section 232 tariffs
Allows president to “adjust imports” (including imposing tariffs) if they threaten national security, following a Department of Commerce investigation and report (typically within 270 days, with public hearings)
It could be broadened to cover more sectors (e.g., semiconductors or pharmaceuticals) by framing trade deficits or supply chain dependencies as security risks
Unlike IEEPA, it requires evidence of impairment to U.S. national security and is not unlimited in scope, but it enables high rates without congressional approval post-investigation
Estimated tariff rates & revenues by statutory authority (as of 10/28/25)
2025 Calendar Year: Effective tariff rate of 18%. Year to date receipts are as follows:
IEEPA: $80B
MFN: $68B
Section 232: $23B
Section 301: $15B
Totals: $186B
2024 Calendar Year: Effective tariff rate of 2.5%. Total receipts were as follows:
August 2025 Federal Circuit Appeals Court ruling on IEEPA tariffs
Federal Circuit appeals court ruled that IEEPA tariffs imposed by Trump administration were invalid
Trump administration appealed court ruling, Supreme Court agreed to review the case, will hear arguments beginning 11/03/25 & a decision is expected by year end
Ruling has been stayed until the Supreme Court decision is rendered (which preserves IEEPA tariffs collected prior to court ruling & also allows additional tariffs to be imposed/collected between now and Supreme Court ruling date)
Supreme Court ruling outlook
Uncertainty exists regarding whether
If Supreme Court deems IEEPA tariffs invalid, they will cease to be collected after
Uncertainty exists regarding whether IEEPA tariffs being refundable; dependent on how Supreme Court rules
Non-IEEPA tariffs will remain in effect regardless of IEEPA case outcome
Trump administration will likely increase or impose new Section 301/232 and MFN tariffs to offset IEEPA tariff revenue losses
Historical Inflation Rates: Average annual inflation rates for the most predominant industries using LIFO:
Auto dealers: 1% – 2%
Metals & metal products: 3% – 6%
Food & beverages: 2% – 3%
Machinery & equipment: 2% – 3%
Oil & gas: 3% – 5%
Plastics & plastic products: 2% – 4%
Current Inflation Environment
Year to date and/or annualized inflation is above historical averages in 10 of 14 Bureau of Labor Statistics Producer Price Index (BLS PPI) major commodity groupings
Annualized 2025 inflation is 2x – 5x higher than historical averages in many industries as most companies have now sold through non-tariffed goods
2025 Year End Inflation Outlook
By the end of the year, nearly all industries carrying goods subject to tariffs will likely have high inflation when compared to historical average rates
At a current average effective tariff rate of 18%, 2025 inflation & LIFO tax benefits are forecasted to be between 2x – 10x higher than historical averages
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Get educated on the Inventory Price Index Computation (IPIC) method, including the origins, advantages & disadvantages, calculation procedures, options & much more!
Learn about LIFO opportunities abound for CPA firms, how to increase the scope of your LIFO offerings & learn how to easily identify good LIFO candidates!
Learn how the IPIC LIFO Method works, find valuable Bureau of Labor Statistics (BLS) links and stay up to date on all changes related to the IPIC Method!
Learn about LIFOPro’s past roles in partnering with companies & CPA firms to deliver great value by finding solutions to the most challenging LIFO issues!
The Inventory Price Index Computation (IPIC) method allows taxpayers to use published external indexes to calculate inflation for the purpose of valuing LIFO inventories.
Supermarkets face LIFO calculation issues unique to the industry. Find out why & answers to how they are dealt with Special Challenges for Supermarkets page.
Why the Double-extension LIFO Index Calculation Method is Unreliable
Facts describing why the double-extension LIFO index calculation method is unreliable and examples proving how this method creates unpredictable results.
Find recent important changes & BLS addition of Table 9 Wherever-provided Services & Construction PPI Indexes & Important Change in PPI Code Structure page.
Find information on CPI Category Changes & Bureau of Labor Statistics Consumer Price Index update information such as new medical commodity codes here!
Learn IRS Regulations Requirements for missing PPI Indexes, procedures for reassigning discontinued PPI Categories at LIFO-PRO’s PPI Category Changes page.
Producer Price Index Usage by Supermarkets to Increase Tax Deferral
Learn how drugs, non-foods & food/beverage indexes cause increase LIFO tax benefits at our PPI Index Usage by Supermarkets to Increase Tax Deferral page.
Switching from the double-extension to link-chain method? Want to achieve higher possible inflation indexes? Learn more at the IPIC LIFO Advantages page.
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Accounting and financial professionals who work with LIFO need to understand the jargon associated with LIFO. Below are a number of LIFO-related terms.
