GlossaryEN1 min readUpdated: Jul 28, 2026

MFN Tariff

The MFN tariff (Most Favoured Nation rate) is the standard customs duty that WTO members apply to imports from other WTO members in the absence of a preferential trade agreement.

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Last updated: 28 July 2026

Source: https://wirtschaftslexikon.gabler.de/definition/mfn-zollsatz-40837

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Definition & Explanation

The MFN tariff (Most Favoured Nation rate) is the standard customs duty that WTO members apply to imports from other WTO members in the absence of a preferential trade agreement. The MFN principle obliges all 164 WTO members to grant all other members the same tariff rate — any trade concession granted to one partner must be extended equally to all others. For freight forwarders and customs declarants, the MFN rate is the baseline for tariff calculations: it determines the base duty before preferential agreements, anti-dumping, or countervailing duties are considered. In the context of US Section 301 tariffs, the MFN rate serves as an offset: Swiss goods are subject to an overall cap of 12.5 percent, with the existing MFN rate credited against the Section 301 surcharge. To determine the correct MFN rate for US imports, the HTSUS is the reference document. Key data sources include the WTO tariff database and the national tariff schedule of the importing country. Not to be confused with preferential tariffs from free trade agreements, which typically offer a lower rate than the MFN tariff.

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