Current rates, product categories, exclusions, legal strategies, and how to protect your business from tariff exposure.
Section 301 of the Trade Act of 1974 authorizes the United States Trade Representative (USTR) to investigate and act against foreign trade practices that are “unreasonable or discriminatory” and burden US commerce.
The Section 301 tariffs on Chinese goods were first imposed in 2018 following a USTR investigation into China’s technology transfer, intellectual property, and innovation policies. Since then, they’ve been expanded, escalated, and renewed — with 2025–2026 executive actions pushing rates on some categories to 145%+.
For US customs compliance and Section 301 guidance, visit our partner FreightClear.com.
Industrial goods, machinery components, aerospace parts, medical devices. Imposed July 2018. Approximately $34B in imports.
Chemical products, minerals, plastics, steel products. Imposed August 2018. Approximately $16B in imports.
Consumer goods, electronics, clothing, furniture — originally 10%, escalated to 25% in 2019. Approximately $200B in imports.
Consumer electronics, apparel, footwear. Rates dramatically escalated under 2025–2026 executive actions. Covers hundreds of billions in imports.
Section 301 tariffs are additional to the standard MFN (Most Favored Nation) duty rate. A product with a 5% base MFN rate + 25% Section 301 = 30% total duty rate.
Additional stacking can occur with:
WCS includes total tariff stack analysis in every quote — so you know your actual landed cost before committing.
Electronics importers face some of the highest Section 301 exposure. Complex bills of materials require country-of-origin analysis. Lithium battery content triggers both IATA and tariff considerations.
Dual compliance burden: Section 301 tariffs AND UFLPA scrutiny for cotton content. Fast fashion brands are also impacted by 2026 de minimis rule changes.
US furniture importers face 25% Section 301 tariffs on Chinese-made furniture. Chinese furniture with Southeast Asian assembly may still carry Section 301 if origin is Chinese.
Solar panel importers face Section 301 tariffs, Section 201 safeguard tariffs, UFLPA exposure, and AD/CVD — some of the most complex tariff stacking in any industry.
Industrial machinery importers face 25% Section 301 tariffs. Large capital equipment purchases in the millions can mean hundreds of thousands in tariff exposure.
Lithium batteries and EV-related supply chains face some of the highest tariff rates in the entire Section 301 structure — dramatically escalated under 2025–2026 executive actions.
Section 301 tariffs are the law — but there are several legal strategies that experienced importers use to reduce exposure, recover duties paid, or restructure supply chains.
Before anything else: confirm your HTS code is correct. A different valid HTS code for the same goods could mean a dramatically different tariff rate — legally.
If there's an intermediate party in your supply chain, you may be able to use the factory price (not the middleman price) as the customs value — reducing your duty basis.
If you import Chinese goods subject to Section 301 and then export them or use them to manufacture exported goods, you may be eligible to recover up to 99% of duties paid.
Some importers have shifted sourcing from China to Vietnam, Mexico, India, or Thailand. This strategy requires careful country-of-origin analysis — substantial transformation rules apply.
Goods can be imported into a US bonded warehouse without paying duties at entry. Duties are paid only when goods are withdrawn — allowing duty deferral and potential re-export without duty payment.
US Foreign Trade Zones allow goods to be admitted without formal customs entry. Goods can be manufactured or assembled in an FTZ, potentially qualifying for lower duty rates on the finished product.
As a Licensed US Customs Broker with 38 years of China freight expertise, we integrate Section 301 compliance into every shipment we manage — not as an add-on, but as a standard part of our service.
What are Section 301 tariffs and why do they exist?
Section 301 tariffs are additional import duties on Chinese-origin goods, first imposed in 2018 in response to China’s trade practices regarding intellectual property and technology transfer. They remain in effect and have been escalated through 2026.
How do I know if Section 301 tariffs apply to my products?
Section 301 applicability is determined by your product’s 10-digit HTS code. WCS includes HTS review and Section 301 analysis in every quote we provide.
What’s the highest Section 301 tariff rate in 2026?
Following tariff escalations under executive actions in 2025–2026, rates on some categories of Chinese goods have reached 145%+. These apply on top of standard MFN duty rates.
Can I claim a Section 301 tariff exclusion?
Possibly. The USTR has granted exclusions for specific products at various times. Check your 10-digit HTS code against the current USTR exclusion database — or contact WCS and we’ll research it for you.
Contact our team for specific transit time estimates for your route and cargo type.
Are Section 301 tariffs still in effect in 2026?
Yes. As of June 2026, all four Section 301 lists remain in force at 25% rates. Additionally, IEEPA tariffs imposed in 2025 stack on top of Section 301 rates for most categories. There is no current indication these tariffs will be removed in the near term.
How do I know if my product is subject to Section 301?
Look up your 10-digit HTS code at hts.usitc.gov and check the "Additional Duties" column for any Chapter 99 additions (Section 301 and IEEPA are listed in Chapter 99). Cross-reference with USTR's Section 301 annexes at ustr.gov.
Can I avoid Section 301 tariffs by shipping through a third country?
Only if goods undergo substantial transformation in that country, making it the legal country of origin. Simply shipping through Vietnam or transloading in a third country doesn't change the country of origin. CBP aggressively investigates tariff evasion — penalties include back duties, fines, and criminal prosecution.
What are the IEEPA tariffs and how do they differ from Section 301?
IEEPA tariffs were imposed under executive orders in 2025 using separate legal authority (International Emergency Economic Powers Act). They are separate from and in addition to Section 301. Where both apply, the rates stack — your total tariff is MFN + Section 301 + IEEPA. The combined rate on some HTS codes now exceeds 50%.
Is there a de minimis exemption for Section 301 tariffs?
The standard de minimis threshold is $800 — goods valued under $800 per person per day can enter duty-free. However, there have been recent policy changes targeting de minimis abuse for China-origin goods. The current status of de minimis exemptions for Section 301 goods should be confirmed with your customs broker before relying on this strategy.
What is first sale valuation and how much can it save?
First sale valuation lets you declare the lower original factory price (vs. the trading company markup) as your dutiable value when goods pass through an intermediary. If your trading company marks up goods 20% before selling to you, you could reduce your dutiable value by 20%, saving 20% × 25% = 5% of FOB value in Section 301 duties. On a $200,000 shipment with 25% tariffs, that's $10,000 in savings. Requires supporting documentation and is not available in all supply chain structures.
| Service | Rate Range |
|---|---|
| *Example | A product with 0% MFN + 25% Section 301 (List 3) + 15% IEEPA = 40% total**. On a $50,000 shipment, that's $20,000 in duties. |
Q: Are Section 301 tariffs still in effect in 2026?
Yes. As of June 2026, all four Section 301 lists remain in force at 25% rates. Additionally, IEEPA tariffs imposed in 2025 stack on top of Section 301 rates for most categories. There is no current indication these tariffs will be removed in the near term.
Q: How do I know if my product is subject to Section 301?
Look up your 10-digit HTS code at hts.usitc.gov and check the “Additional Duties” column for any Chapter 99 additions (Section 301 and IEEPA are listed in Chapter 99). Cross-reference with USTR’s Section 301 annexes at ustr.gov.
Q: Can I avoid Section 301 tariffs by shipping through a third country?
Only if goods undergo substantial transformation in that country, making it the legal country of origin. Simply shipping through Vietnam or transloading in a third country doesn’t change the country of origin. CBP aggressively investigates tariff evasion — penalties include back duties, fines, and criminal prosecution.
Q: What are the IEEPA tariffs and how do they differ from Section 301?
IEEPA tariffs were imposed under executive orders in 2025 using separate legal authority (International Emergency Economic Powers Act). They are separate from and in addition to Section 301. Where both apply, the rates stack — your total tariff is MFN + Section 301 + IEEPA. The combined rate on some HTS codes now exceeds 50%.
Q: Is there a de minimis exemption for Section 301 tariffs?
The standard de minimis threshold is $800 — goods valued under $800 per person per day can enter duty-free. However, there have been recent policy changes targeting de minimis abuse for China-origin goods. The current status of de minimis exemptions for Section 301 goods should be confirmed with your customs broker before relying on this strategy.
Q: What is first sale valuation and how much can it save?
First sale valuation lets you declare the lower original factory price (vs. the trading company markup) as your dutiable value when goods pass through an intermediary. If your trading company marks up goods 20% before selling to you, you could reduce your dutiable value by 20%, saving 20% × 25% = 5% of FOB value in Section 301 duties. On a $200,000 shipment with 25% tariffs, that’s $10,000 in savings. Requires supporting documentation and is not available in all supply chain structures.
| Service | Rate Range |
|---|---|
| *Example | A product with 0% MFN + 25% Section 301 (List 3) + 15% IEEPA = 40% total**. On a $50,000 shipment, that's $20,000 in duties. |
Q: Are Section 301 tariffs still in effect in 2026?
Yes. As of June 2026, all four Section 301 lists remain in force at 25% rates. Additionally, IEEPA tariffs imposed in 2025 stack on top of Section 301 rates for most categories. There is no current indication these tariffs will be removed in the near term.
Q: How do I know if my product is subject to Section 301?
Look up your 10-digit HTS code at hts.usitc.gov and check the “Additional Duties” column for any Chapter 99 additions (Section 301 and IEEPA are listed in Chapter 99). Cross-reference with USTR’s Section 301 annexes at ustr.gov.
Q: Can I avoid Section 301 tariffs by shipping through a third country?
Only if goods undergo substantial transformation in that country, making it the legal country of origin. Simply shipping through Vietnam or transloading in a third country doesn’t change the country of origin. CBP aggressively investigates tariff evasion — penalties include back duties, fines, and criminal prosecution.
Q: What are the IEEPA tariffs and how do they differ from Section 301?
IEEPA tariffs were imposed under executive orders in 2025 using separate legal authority (International Emergency Economic Powers Act). They are separate from and in addition to Section 301. Where both apply, the rates stack — your total tariff is MFN + Section 301 + IEEPA. The combined rate on some HTS codes now exceeds 50%.
Q: Is there a de minimis exemption for Section 301 tariffs?
The standard de minimis threshold is $800 — goods valued under $800 per person per day can enter duty-free. However, there have been recent policy changes targeting de minimis abuse for China-origin goods. The current status of de minimis exemptions for Section 301 goods should be confirmed with your customs broker before relying on this strategy.
Q: What is first sale valuation and how much can it save?
First sale valuation lets you declare the lower original factory price (vs. the trading company markup) as your dutiable value when goods pass through an intermediary. If your trading company marks up goods 20% before selling to you, you could reduce your dutiable value by 20%, saving 20% × 25% = 5% of FOB value in Section 301 duties. On a $200,000 shipment with 25% tariffs, that’s $10,000 in savings. Requires supporting documentation and is not available in all supply chain structures.