Section 301 tariffs on China imports: what they are and how much they add

What Section 301 tariffs are

Section 301 refers to a provision of the Trade Act of 1974 that allows the US government to impose tariffs in response to trade practices it considers unfair. The current round of Section 301 tariffs on Chinese goods was imposed starting in 2018, in several lists (List 1, List 2, List 3, and List 4A/4B), covering hundreds of billions of dollars in annual imports.

These tariffs are assessed in addition to the standard Most Favored Nation (MFN) duty rate that applies to goods from all countries. If your product has an MFN rate of 5% and a Section 301 rate of 25%, you pay 30% in total duties on the declared value.

The rates vary by product category. As of 2025 to 2026, common rates include:

• 7.5%: consumer goods such as clothing, footwear, and many manufactured products on List 4A.
• 25%: industrial goods, machinery, electronic components, steel, and aluminum products on Lists 1, 2, and 3.
• 145%: electric vehicles and certain strategic goods subject to the most recent tariff escalations.

Rates have changed over time and may change again. Always verify the current rate for your specific HTS code before placing an order.

How to find out if your product is affected

Section 301 tariff applicability is determined by the 10-digit HTS code for your product. The process:

• Find your HTS code. Use the USITC Harmonized Tariff Schedule online tool (usitc.gov) or ask your customs broker to classify your goods.
• Look up the MFN duty rate. The USITC tool shows the standard rate applicable to all countries.
• Check for Section 301 additional duties. The USITC tool also shows additional duties under the 'Special' column and in the 'Additional Duties' notes. Your customs broker can confirm the current Section 301 rate for your HTS code.
• Check for any exclusions. USTR has granted product-specific exclusions for some HTS codes at various times. Some exclusions are still active; others have expired. Your broker can check whether an exclusion applies to your specific product.

How to calculate the impact on landed cost

Section 301 tariffs are calculated on the customs value of the goods -- the declared transaction value on the commercial invoice, converted to USD using the exchange rate on the entry date.

Example: You import $10,000 worth of electronic components from China. The MFN duty rate is 0% (common for many electronics). The Section 301 rate for your HTS code is 25%. Total duties = $2,500. That $2,500 is due before CBP releases the goods.

For higher Section 301 rates, the impact on margin is significant:

• At 7.5%: $10,000 shipment adds $750 in Section 301 duties.
• At 25%: $10,000 shipment adds $2,500 in Section 301 duties.
• At 145%: $10,000 shipment adds $14,500 in Section 301 duties -- more than the value of the goods.

This is why Section 301 tariffs can make some China-sourced products uncompetitive against alternatives from Vietnam, India, or Mexico, which are not subject to the same surcharges.

What options importers have

There is no legal way to avoid Section 301 tariffs if your goods are made in China and your HTS code is covered. However, importers do have options:

• Check for active exclusions. USTR has granted product-specific exclusions at various points. If your HTS code has an active exclusion, you can file for a refund of Section 301 duties paid or avoid them going forward. Your customs broker can check exclusion status.
• Verify the country of origin. Section 301 tariffs apply to goods with a Chinese country of origin. If your product undergoes substantial transformation in another country before export, it may qualify for a different country of origin. Country of origin rules are complex -- get a binding ruling from CBP if origin is ambiguous.
• Source from alternative countries. Vietnam, India, Bangladesh, and Mexico are not subject to Section 301 tariffs. Many importers have diversified their supply chains for high-tariff product categories.
• Reclassify under a different HTS code. Some products span multiple HTS codes with different Section 301 rates. If your product legitimately fits a lower-rate code, your broker can file under the correct classification. Do not misclassify goods -- CBP audits entries and back-charges duties plus interest on misclassifications.
• Factor tariffs into pricing from the start. For products where tariffs are unavoidable, build the full duty cost into your unit economics before ordering. Discovering the tariff impact after the goods arrive is more expensive than planning for it upfront.