Oil tariffs are back in the headlines, but for specialty oil buyers, the story is more nuanced than simple “up” or “down.” In November/December, some China Section 301 tariff exclusions were extended, certain “ships fees” tied to those tariffs are temporarily suspended, and ocean freight is still volatile even as container rates soften. Questions? Contact us.
If you buy specialty oils, such as food-grade white mineral oils, Group II/III base oils, gas-to-liquid (GTL) isoparaffins, or other specialty oils, your December landed cost depends on two things:
- Oil tariffs on your specific Harmonized Tariff Schedule (HTS) line, and
- Route and surcharges attached to the ship that actually moves your cargo.
Below is a clear, buyer-ready summary of the key tariff and shipping shifts to watch as you plan 2026 contracts.
Suzanne Kingsbury, Director of Quality
Tariff & Policy Changes to Watch in December
The policy environment has not calmed down, but for many importers, there is a bit more breathing room than it looked like we’d have a few months ago.
1. Section 301 China exclusions extended again, through 2026
In late November, the Office of the United States Trade Representative (USTR) announced another extension of 178 China Section 301 tariff exclusions that were set to expire on November 29th, 2025. Those exclusions now run to November 10th, 2026.
For specialty oil buyers, the practical takeaways are straightforward:
- If your specialty oil (or more likely containers) are imported under one of the covered HTS lines, your duty relief continues for another year.
- If not, the underlying Section 301 tariffs remain in force at the previous rate; this announcement did not cut base duty rates.
- The extension is part of a broader U.S.–China trade “truce,” which reduces the likelihood of an immediate new round of across-the-board tariff hikes on industrial goods.
This is good news if you’ve already done the work to confirm your classification and exclusions. If you haven’t, December is an ideal time to double-check whether any of your products fall under the extended exclusions list.
2. “Ships fees” tied to Section 301 suspended for a year
Alongside the exclusions news, logistics providers report that certain U.S. “ships fees” have been suspended. These are linked to the China Section 301 actions and have been suspended for one year as of November 10th.
In plain language, that means:
- Some extra charges tied to using Chinese ships or routes tied into Section 301 are on pause.
- Your core oil tariffs on the product itself do not disappear, but part of the stack of add-on costs associated with those tariffs may ease for 2026 bookings.
- The actual impact will vary by carrier, route, and contract. You’ll see it show up (or not) in your all-in rate and landed-cost math, not just in the tariff line on your customs entry.
This is a reminder that for specialty oils, tariff policy and logistics pricing are now intertwined. You need both your customs broker and your logistics partners (and supplier) in the same conversation.
3. India and other origin risks still in play
While U.S.–China tensions are in a temporary holding pattern, India-related tariff risk has increased during 2025.
At least some Indian exports now face up to 50% cumulative tariffs on some India-origin goods tied to energy trade after new U.S. actions, according to trade and freight intelligence sources.
For buyers sourcing specialty oils or feedstocks from India, that means:
- You should not assume India is automatically a “low-duty” alternative to China.
- If you or your supplier has shifted specialty oils to India to dodge China tariffs, your landed-cost advantage may have narrowed or flipped this year.
- As with China, the real answer depends on your exact HTS line under Chapter 27 (petroleum oils and related products) and whether any country-specific measures apply.
The bottom line: origin diversification is still smart, but only if you’re modeling duty plus freight, not just posted tariff rates.
Sourcing from Canada and Mexico: No Significant Updates
Canadian energy exports still carry a 10 percent IEEPA layer unless they qualify under USMCA (in which case they’re effectively exempt) and Mexican non-USMCA goods still face a 25 percent IEEPA layer while USMCA-qualifying Mexican goods remain duty-free. The real story right now is the legal and political uncertainty of the Trump Administration’s tariffs (no ruling yet on the Supreme Court case, and the USMCA is set for a July 2026 review). So for now, North American, USMCA-clean, and of course U.S.-based supply lines are the most predictable plays and a key area where Renkert Oil helps buyers optimize their risk and landed cost.
Shipping & Surcharges: Route Risk Still Matters
Even if your oil tariffs haven’t changed, December freight conditions can move your landed cost up or down by several percentage points per shipment.
1. Red Sea and Suez: slow, cautious return
Carriers are still operating in a “cautious recovery” mode around the Red Sea and Suez corridors:
- Although some analysts are hopeful of a return to Red Sea routing in 2026, many carriers continue to route via the Cape of Good Hope instead of the Suez Canal due to lingering security concerns. This keeps transit times longer and adds fuel and equipment-use costs.
- At the same time, a growing container fleet and a partial rebound in Suez transits are putting downward pressure on base container rates, with year-on-year rates lower for many trades despite the diversions.
- Industry analysts describe the ocean freight market as over-supplied but geographically dislocated, with regional imbalances and sudden rate swings when capacity shifts.
For specialty oil buyers, that translates into volatile all-in freight: you may see lower base rates on paper while still paying extra days on the water and higher bunker-fuel costs.
2. War-risk premiums in the Black Sea and beyond
In the Black Sea, war-risk insurance costs recently spiked again after a series of attacks on tankers, pushing war-risk premiums as high as 1 percent of vessel value, up sharply from roughly 0.4–0.6% a week earlier.
Even if your specialty oils don’t move through the Black Sea, this matters because:
- Underwriters reassess shipping war-risk daily, not weekly, when tensions rise.
- That same risk lens can bleed into pricing for other energy-linked routes, especially where insurers see regional contagion risk.
- The pattern is clear: volatile geopolitics = volatile surcharges, fees, and premiums layered on top of freight and tariffs.
3. Peak season surcharges and “event surcharges” persist
Carriers continue to lean on peak season surcharges (PSS) and other “event-based” surcharges as a way to manage risk and margins:
- Hapag-Lloyd, for example, recently announced a PSS on “Reefer” cargo (refrigerated containers) from India to the Middle East and Red Sea ports starting November 21st, and running “until further notice.”
- Analysts note that Red Sea–linked surcharges may eventually present negotiating opportunities as conditions improve if you’re watching closely enough to know when to push for their reduction or removal.
For specialty oil importers, this reinforces a familiar lesson: never look only at the base rate. You need a clear view of the full surcharge stack, especially if you require special conditions for transportation, such as refrigeration for bio-based oils.
Buyer Checklist: How to Protect Your Margins in December
Before finalizing 2026 contracts or your next tender, it helps to walk through a structured checklist so you’re not surprised by oil tariffs or freight.
Below is a practical set of questions to ask your internal team, customs broker, logistics partners, and suppliers.
- Confirm your HTS (Harmonized Tariff Schedule) lines and origin mix. Make sure every specialty oil, whether white mineral oil, Group II/III base oil, GTL isoparaffin, or other specialty oil, is correctly classified under Chapter 27, origin is documented, and you understand which shipments actually touch China, India, or other higher-risk origins.
- Check whether Section 301 exclusions apply to your products. Review the latest USTR exclusion list with your customs broker to see whether any of the extended exclusions cover your HTS lines, and how long those exclusions will last under current rules.
- Ask carriers how they are handling “ships fees” and tariff-linked surcharges. Even though some ships fees tied to Section 301 have been suspended for a year, confirm how each carrier is reflecting that in their all-in quotes and long-term contracts.
- Model landed cost under multiple routing scenarios. Have your logistics partners price both current routing (for example, via the Cape of Good Hope) and potential future routing through Suez or alternative ports so you understand the sensitivity of your landed cost to route changes.
- Review war-risk and event-surcharge exposure. Ask your freight forwarders (or suppliers managing those relationships) and carriers where war-risk premiums, peak season surcharges (PSS), or other event-based fees currently apply to your lanes, and how quickly they can change.
- Align safety stock and inventory strategy with tariff risk. If an exclusion or suspension you rely on expires in late 2026, decide now whether you want to front-load some volumes under today’s rules or diversify origins and products to protect your margins.
- Confirm that your supplier is actively monitoring tariffs and surcharges. Ask how often your specialty oil supplier is reviewing tariff updates, HTS changes, and bulk freight conditions, and how they’ll notify you when something shifts that could affect your next shipment.
In short, think of your landed cost for specialty oils as a three-legged stool: tariff classification, routing, and supplier support. If any one leg is weak, your margins wobble. The goal of this checklist is to stress-test each leg before you commit.
How Renkert Oil Helps You Stay Ahead of Oil Tariffs and Shipping Cost Fluctuations
In this environment, your success depends on more than securing a “good price” today. You need a specialty oil partner who treats oil tariffs, routing, and supply security as core parts of the value they deliver.
Here at Renkert Oil, we:
- Focus on specialty oils, including food-grade white mineral oils, Group II/III base oils, and GTL isoparaffins, so we understand how tariff lines under Chapter 27 impact your exact products and applications.
- Track U.S. tariff actions, Section 301 exclusions, and freight surcharges so you can adjust contracts and inventory strategies before changes show up on your invoices.
- Work closely with our logistics partners to help you optimize routes and timing for critical loads, especially for temperature-sensitive and food-grade products where service quality matters as much as price.
If you’re planning 2026 volumes now and want a clearer picture of how December’s oil tariffs and shipping shifts could affect your landed cost, reach out to your Renkert Oil representative or contact us to start that conversation.
We’re here to help you turn a volatile policy and freight landscape into a thoughtful, resilient supply strategy.