A tariff is a tax on a good or service that is imported into the United States of which the amount is based on the nature of good and/or services (automobiles, electronics, natural resources, etc.). Tariff levels will vary in amount and are applicable based on the country of origin.
A tariff will increase the cost to purchase an applicable good or service.
Tariff costs are allowable on federal sponsored awards (2 CFR 200.470), however, all costs charged to a sponsored aware must be “reasonable” under the Cost Principles (2 CFR 200.403(a)). The cost of goods and services should be comparable from multiple vendors and sources; a good or service which has a significantly higher cost due to a tariff may not be viewed as “reasonable” by the federal awarding agency.
It is recommended that PIs and research units review the per unit cost (including any applicable tariffs) of items which are imported into the United States and compare them to similar goods that are available domestically or from countries with a lower tariff rate.