The landscape for oil tariffs changed significantly in late July, as surcharges were reduced. But to get a clear view of landed costs, specialty oil buyers still need to pay attention to trade policy and ever-changing oil shipping conditions. Questions? Contact us.
In this month’s update, we cover the biggest factors affecting cost in the oil supply chain:
- The temporary Section 122 surcharge is gone.
- A much broader round of Section 301 tariffs has taken its place.
- Container freight remains expensive.
- The Strait of Hormuz is still operating far below normal.
- U.S. importers are beginning to move past an unusually early peak shipping season.
For buyers planning late Q3 and Q4 orders, it’s important to understand the new cost structure now in place.
Suzanne Kingsbury, Director of Quality
The Biggest Oil Tariff Changes for August
1. The Section 122 Tariff Has Expired
One major source of uncertainty from our July update has been resolved.
The temporary 10 percent Section 122 import surcharge expired July 24 after reaching the 150-day limit established when it took effect in February. The original White House proclamation specified that the surcharge would remain in place through July 24 unless extended.
That removes one layer of potential cost from many imports. But the timing is important because another major tariff action took effect the same day.
2. New Section 301 Tariffs Now Cover Most Imports from 60 Trading Partners
On July 23, the Office of the United States Trade Representative announced a final action in its forced-labor Section 301 investigations. The new duties generally took effect at 12:01 a.m. Eastern on July 24.
The action establishes:
- A 10% Section 301 tariff for goods from countries including Canada, Mexico, India, Malaysia and the United Kingdom.
- A 12.5% tariff for many other investigated economies.
- Special rules for the European Union, Taiwan, Japan, Korea and Switzerland that take existing most-favored-nation duties into account.
- Exemptions for certain products and raw materials.
According to a USTR fact sheet, the action covers trading partners representing 99.4 percent of U.S. imports, although not every product is subject to the additional duty.
Before assuming an imported oil, additive, drum, tote, component or other input now carries an extra 10 or 12.5 percent, review the exact Harmonized Tariff Schedule (HTS) classification, country of origin, and applicable exemptions with your customs broker or trade counsel.
3. IEEPA Refunds Are Still a Separate Cash-Flow Issue
Importers that paid tariffs imposed under the International Emergency Economic Powers Act (IEEPA) may still be working through the refund process.
U.S. Customs and Border Protection is processing eligible IEEPA refunds through its Consolidated Administration and Processing for Entries (CAPE) system.
For procurement teams, however, an expected refund should still be kept separate from today’s purchasing budget. New tariffs, freight charges and supplier invoices may need to be paid long before refund dollars arrive.
Oil Shipping Risk Remains High
1. The Strait of Hormuz Is Still Far from Normal
There have been signs of diplomatic progress around the Strait of Hormuz, but buyers should be cautious about treating that as a return to normal shipping conditions.
Reuters reported August 14 that traffic through the Strait of Hormuz had slowed further after two more vessels were attacked. The U.S. and Iran also continued to make conflicting claims over access to the waterway, while the United Arab Emirates said two ADNOC vessels had been attacked.
The continued security problems are keeping one of the world’s most important oil shipping routes under significant pressure.
By August 17, U.S.-Iran peace talks remained stalled, helping push Brent crude higher as markets weighed the risk of prolonged supply disruption. Iran also warned that it could escalate military action, including further disruption in the Strait of Hormuz, if the United States did not fulfill terms of the interim peace agreement within weeks.
For specialty oil buyers, Hormuz risk can surface indirectly through:
- Marine fuel costs
- Tanker availability
- War-risk insurance
- Refinery economics
- Longer routes
- Product lead times
That’s why oil shipping conditions matter even when a particular specialty oil is not coming directly through the Persian Gulf.
2. Red Sea Risk Adds Another Layer
Hormuz is not the only chokepoint under pressure.
Attacks in and around the Red Sea and Gulf of Aden have continued to affect tanker movements and alternative export routes. Saudi Arabia has relied more heavily on pipelines to its Red Sea coast to move crude around Hormuz, while security concerns near Bab el-Mandeb create risks for those routes as well.
That leaves the global oil supply chain with less room for another major disruption.
Saudi Aramco CEO Amin Nasser said in early August that global inventories had fallen by more than 2.6 billion barrels since the Iran conflict began and estimated that rebuilding inventories could take about 18 months even if Hormuz traffic normalized immediately.
Freight Rates Have Eased from Their July Peak but Remain Elevated
Container freight has come down from its July high, but recent increases show that rates are still moving unevenly.
Drewry’s World Container Index rose for the second straight week on August 13, increasing 1 percent to $4,339 per 40-foot container. The increase was driven largely by Transpacific rates, with Shanghai-to-New York spot rates jumping 10 percent and Shanghai-to-Los Angeles rates rising 6 percent.
Drewry said carriers were continuing to restrict capacity through blank sailings, with additional cancellations planned for the following week.
Drewry expects rates to remain less volatile in the near term as carriers tighten capacity, but the broader market is still dealing with disruptions tied to the Strait of Hormuz and Suez Canal, Panama Canal restrictions, Asian port congestion and inland transportation challenges in Europe.
The firm advised shippers to book early and allow extra lead time to reduce the risk of delays.
For buyers comparing suppliers, it’s still worth asking whether quoted freight includes current fuel surcharges, whether alternate terminals are available and whether domestic inventory can reduce exposure to international shipping costs.
Renkert Oil’s logistics network includes strategic storage locations and multiple transportation options, including rail, truck, ISO tank and Flexitank movements.
An Early Import Peak May Be Winding Down
Another change worth watching is U.S. container demand.
Throughout spring and early summer, importers pulled cargo forward ahead of tariff changes and possible increases in fuel and transportation costs. The National Retail Federation now says that early peak season is beginning to wind down.
Its latest Global Port Tracker forecast calls for August import volume of about 2.2 million twenty-foot equivalent units (TEUs), down 4.2% from August 2025, with additional declines expected later in the year.
Lower import volumes could eventually relieve some capacity pressure. But fuel costs, Middle East disruption and carrier capacity decisions may keep freight from falling in a straight line.
That is another reason to focus on your actual lane rather than assuming a broad freight index tells the whole story.
What Specialty Oil Buyers Should Review in August
August planning can be boiled down to a shorter checklist:
- Recalculate landed costs now that Section 122 has expired and the new Section 301 tariffs are in effect.
- Verify HTS classifications and exemptions before assuming a 10% or 12.5% tariff applies.
- Keep IEEPA refunds separate from working-capital planning, as there’s no guaranteed timeline to plan around.
- Check current freight quotes, fuel surcharges, and insurance costs before finalizing large orders.
- Build some lead-time flexibility into orders exposed to Middle East shipping routes.
- Review inventory and approved alternate sources for products with overseas supply exposure.
- Ask about domestic or regional inventory that may reduce freight and tariff risk.
Keep Your Specialty Oil Supply Plan Flexible
As the landed cost picture remains volatile, supply chain flexibility is especially valuable.
At Renkert Oil, we combine specialty oil expertise with redundant supply points and flexible logistics options designed to reduce the effect of overseas disruptions, transportation bottlenecks and sudden cost changes.
If your team is reviewing late-Q3 or Q4 requirements, this is a good time to check product availability, landed cost, inventory coverage and alternate supply before the next market change forces the decision.
Ready to talk through your next specialty oil order? Contact Renkert Oil today.
FAQs: August 2026 Oil Tariffs and Shipping
- What are oil tariffs?
Oil tariffs are duties that may apply to imported petroleum products, specialty oils or related materials. Tariffs can also affect packaging, additives, equipment and other inputs used throughout the specialty oil supply chain.
- What changed with oil tariffs in July 2026?
The temporary Section 122 import surcharge expired July 24. At nearly the same time, new Section 301 tariffs took effect on imports from dozens of U.S. trading partners, changing the tariff exposure for many imported goods.
- Do the new Section 301 tariffs apply to all specialty oils?
Not necessarily. Tariff treatment depends on factors such as the product’s Harmonized Tariff Schedule (HTS) classification, country of origin and applicable exemptions. Buyers should verify the details before assuming a particular duty applies.
- Why should specialty oil buyers recalculate landed costs in August?
Tariff changes, freight rates, fuel costs and insurance expenses can all alter the total cost of an imported product. A landed-cost calculation from June or early July may no longer reflect current conditions.
- What are IEEPA tariff refunds?
Some importers that previously paid duties imposed under the International Emergency Economic Powers Act (IEEPA) may qualify for refunds. Buyers should remember that eligibility for a refund does not mean the funds will immediately be available for current purchasing needs.
- Why is the Strait of Hormuz important for oil shipping?
The Strait of Hormuz is a major route for global oil and gas shipments. Disruptions can affect crude prices, tanker availability, marine fuel, insurance, routing and lead times throughout the energy supply chain.
- How can Red Sea disruptions affect specialty oil buyers?
Red Sea security problems can force vessels to change routes or increase shipping precautions. Those changes may contribute to higher freight costs, insurance expenses and longer delivery times even for buyers outside the region.
- Are container freight rates coming down?
Rates have eased from their July 2026 peak, but they remain elevated and can change quickly by route. Buyers should use current lane-specific quotes rather than relying only on broad freight averages.
- What should specialty oil buyers review before placing Q4 orders?
Buyers should review current tariff exposure, HTS classifications, freight quotes, fuel and insurance surcharges, inventory levels, lead times and approved alternate sources. Building flexibility into purchasing plans can help reduce exposure to sudden disruptions.
- How can Renkert Oil help manage oil tariffs and shipping uncertainty?
Renkert Oil helps customers evaluate specialty oil availability, inventory coverage, alternate supply options and logistics. Our redundant supply points and flexible transportation options can help buyers plan around changing tariff, freight and supply-chain conditions.