Section 301 Tariffs on China 2026: Complete Guide to Rates, Lists & Exclusions

What Is Section 301 and Why It Matters in 2026

Section 301 of the Trade Act of 1974 gives the US Trade Representative (USTR) broad authority to investigate foreign trade practices and impose retaliatory tariffs when a trading partner engages in "unreasonable or discriminatory" acts that burden US commerce. In 2018, the Trump administration invoked Section 301 against China based on an investigation into China's practices related to technology transfer, intellectual property, and forced licensing — launching the most significant unilateral US tariff action since the Smoot-Hawley Tariff Act of 1930.

Unlike most US trade remedies, Section 301 tariffs are assessed as an additional ad valorem duty stacked directly on top of the standard Most Favored Nation (MFN) rate. A product with a 5% MFN rate that falls under Section 301 List 3 pays 5% + 25% = 30% total duty. For many product categories, this means US importers are paying two to five times the pre-2018 duty rate on goods sourced from China.

In 2026, Section 301 remains the dominant tariff regime affecting US-China trade. Despite four rounds of escalation and one partial de-escalation (the Phase One trade deal in 2020), the core Section 301 structure is fully intact. The Biden administration's 2024 tariff increases on EVs, solar, batteries, and medical goods added further pressure on strategic sectors. Any company importing from China — or considering it — needs to understand where their products fall within the Section 301 framework.

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History — From 2018 Investigation to Current Rates

The Section 301 tariff escalation unfolded in four distinct rounds between 2018 and 2019, with a partial rollback under the Phase One agreement in early 2020, and then a second wave of targeted increases under the Biden administration in 2024. Understanding this timeline is essential for importers because the applicable rate depends entirely on which "list" a product's HTS code appears on — and those lists were built from four separate USTR determinations.

Round 1 — List 1 (July 2018)

USTR published the first list in July 2018 covering approximately $34 billion in Chinese imports at a 25% additional duty rate. The initial List 1 focused heavily on products in the "Made in China 2025" strategic plan — advanced machinery, aerospace components, industrial robots, semiconductor-related equipment, and select agricultural products. This list was designed to target Chinese industrial policy objectives rather than consumer goods.

Round 2 — List 2 (August 2018)

List 2 took effect in August 2018 covering approximately $16 billion in additional Chinese imports, also at a 25% rate. List 2 expanded coverage to additional industrial goods: plastics, chemicals, motorcycles, and electric motorcycles. At this stage, consumer goods remained largely untouched — the political calculus was to avoid visible retail price increases.

Round 3 — List 3 (September 2018, raised 2019)

List 3 was the most economically significant round, covering approximately $200 billion in Chinese imports. It was initially imposed at 10% in September 2018 and raised to 25% in May 2019 after trade negotiations stalled. List 3 was far broader than the earlier lists — covering furniture, electronics, machinery, auto parts, textiles, apparel inputs, consumer goods, and building materials. At this point, US importers across nearly every sector had Section 301 exposure.

Round 4 — List 4A (September 2019, reduced 2020)

List 4 was split into two parts. List 4A took effect in September 2019 at 15% and was reduced to 7.5% under the Phase One trade agreement in February 2020, covering approximately $120 billion in consumer-facing goods: laptops, smartphones, clothing, footwear, and toys. List 4B (which would have covered the remainder of Chinese imports) was never implemented and remains suspended.

Phase One and the 2020 Reductions

The Phase One agreement signed in January 2020 did not eliminate Section 301 tariffs — it reduced the List 1 rate from 25% to 7.5% and the List 4A rate from 15% to 7.5%, in exchange for Chinese commitments on agricultural purchases, IP protections, and financial services. The tariff reductions were implemented in February 2020 and remain in effect. Lists 2 and 3 were not reduced under Phase One.

Biden Administration 2024 Increases

Following the USTR's four-year statutory review completed in 2024, the Biden administration announced targeted increases on strategic sectors: electric vehicles to 100%, solar cells to 50%, lithium batteries for EVs to 25%, ship-to-shore cranes to 25%, and medical gloves and syringes to 100%. These increases were phased in through 2024-2025 and represent a continuation of industrial policy-driven tariff escalation targeting Chinese dominance in green technology and medical supply chains.

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Current Section 301 Rates by List

As of 2026, Section 301 tariffs operate across four active lists. Each list has a distinct rate, coverage scope, and origin in the escalation timeline. The rate applicable to any specific product depends entirely on which list — if any — contains that product's HTS code.

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2024 Targeted Tariff Increases

Following a mandatory four-year statutory review of the Section 301 tariffs, the Biden administration announced significant targeted increases on strategic sectors in May 2024, phased in over 2024 and 2025. These increases departed from the broad-list structure of the original 2018-2019 tariffs and focused specifically on sectors where China has achieved dominant global market share — particularly clean energy, critical minerals, and medical supply chains.

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How to Check if Your Product Is Affected

Determining whether a specific product is subject to Section 301 tariffs requires matching the product's HTS classification to the product lists published in USTR Federal Register notices. This is not a simple lookup — the lists are published as lengthy annexes to Federal Register notices, and coverage can exist at the 8-digit or 10-digit level with exclusions layered on top. Here is the step-by-step process.

1. Classify your product to the 10-digit HTS level. Section 301 coverage is defined at the HTS subheading level. You need the correct 10-digit HTS code — a wrong classification means you may miss Section 301 exposure entirely, or incorrectly assume coverage where none exists. Use the USITC's official HTS schedule at hts.usitc.gov or our Tariff Lookup tool for an initial classification check.
2. Check the HTSUS Chapter 99 special duty provisions. In the Harmonized Tariff Schedule of the United States (HTSUS), Section 301 rates appear as special duty provisions under Chapter 99, specifically subheadings 9903.88.01 through 9903.88.48. Look up your 8-digit or 10-digit code and check whether any Chapter 99 provision applies. The "Special" duty column in the HTS schedule will reference the applicable 9903.88.XX subheading if Section 301 applies.
3. Review the USTR Federal Register annexes. The definitive source for Section 301 coverage is the USTR Federal Register notices published in 2018-2024. Each notice includes an Annex listing every HTS subheading subject to that round's tariffs. Search federalregister.gov for "USTR Section 301 China" to access the original determinations. Note that HTS codes are periodically reclassified — a code that was covered in 2018 may have been renamed in subsequent HTS schedule updates.
4. Check for partial coverage at the 10-digit level. Some 8-digit headings have only partial Section 301 coverage — meaning some 10-digit subheadings within a heading are covered and others are not. Always verify at both the 8-digit and 10-digit level before concluding coverage exists or does not exist. This partial coverage is common for product categories where only specific grades or uses of a broader product are strategic enough to be targeted.
5. Check for active exclusions on your HTS code. Even if an HTS code is on a Section 301 list, USTR may have granted a product-specific exclusion that allows importation without the additional duty. Exclusions are identified by a separate Chapter 99 subheading (typically 9903.88.XX exclusion codes). Check the USTR's exclusion database and the most recent Federal Register notices for your specific HTS code. Most exclusions from 2019-2021 have now expired, but verify current status.
6. Confirm country of origin. Section 301 applies based on the country of origin, not the country of export. Goods manufactured in China but exported through a third country are still subject to Section 301 if China is the country of origin under the CBP "substantial transformation" standard. Transshipment through Vietnam, Malaysia, or Mexico does not avoid Section 301 if substantial transformation did not occur in the transit country.

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The Section 301 Exclusion Process — Current Status

Since the Section 301 tariffs were first imposed in 2018, USTR has operated exclusion processes through which individual companies — and industry groups — can petition for relief from Section 301 duties on specific products. Exclusions operate at a granular level: they apply to specific HTS subheadings (and sometimes to specific product descriptions within an HTS subheading) and to all importers of those products, not just the petitioning company.

Exclusion Criteria

USTR evaluates exclusion petitions based on several factors:

• Availability outside China — is the product available from non-Chinese sources in sufficient quantity and quality? If yes, USTR is less likely to grant relief.
• Economic harm — does the tariff cause severe economic harm to US importers, manufacturers, or downstream industries that depends on the product?
• Strategic importance — is the product on China's strategic industries list (Made in China 2025)? If yes, USTR is less likely to grant relief as protecting US production is the stated policy goal.
• US production capacity — is there meaningful US domestic production of the product? If yes, relief is less likely as tariffs are intended to protect that production.

Current Exclusion Status in 2026

As of 2026, the exclusion landscape for Section 301 is significantly narrowed compared to 2019-2021. The major exclusion processes from that period — which granted thousands of product-specific exclusions under Lists 1, 2, and 3 — were allowed to expire between 2020 and 2024 without broad renewal. USTR did conduct a targeted exclusion process in 2024 focused on technology and medical products under the new tariff action, but most of the earlier blanket exclusions are no longer active.

The practical implication: importers who relied on exclusions granted in 2019-2020 to maintain their China sourcing without paying Section 301 duties have almost certainly seen those exclusions expire. Any importer whose compliance strategy depended on a product-specific exclusion should verify current exclusion status before the next shipment.

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Legal Supply Chain Strategies to Reduce Section 301 Exposure

For companies where Section 301 tariffs are material to their cost structure, several legal strategies exist to reduce exposure. None of these is a silver bullet, and each involves its own trade-offs in cost, complexity, and timing. The right strategy depends on your product, your production volume, and your supply chain flexibility.

1. Manufacturing Relocation

The most durable long-term solution is shifting production out of China to a country not subject to Section 301. Since 2018, Vietnam, Mexico, India, and Malaysia have all attracted significant manufacturing investment from companies seeking to reduce China tariff exposure. Vietnam has become particularly dominant for electronics assembly, apparel, and footwear — the categories that make up much of List 3 and List 4A. Mexico's proximity to the US and its USMCA benefits make it attractive for goods where US content requirements can be met.

The key compliance caveat: CBP requires genuine substantial transformation in the new country for the product to qualify for that country's origin (and therefore avoid Section 301). Minimal assembly operations — cutting fabric, applying labels, bolting together Chinese-made components — do not constitute substantial transformation and do not change country of origin. CBP has aggressively pursued transshipment enforcement, particularly for solar panels, steel, and apparel originating in China but exported via Vietnam or Malaysia.

2. First Sale Valuation

US Customs allows importers to declare customs value based on the "first sale" price in a multi-party transaction chain, rather than the final sale price to the US importer. If your supply chain involves a Chinese manufacturer selling to a middleman who sells to you, you may be able to declare the manufacturer-to-middleman price (typically lower) as the customs value basis for duty calculation — reducing the dutiable value and therefore the dollar amount of Section 301 duties paid.

First sale valuation requires CBP approval and clear documentation: you need contracts, invoices, and proof of payment showing both the first sale (manufacturer to middleman) and the second sale (middleman to importer). First sale is not available for all transactions — both sales must be bona fide arms-length transactions destined for US export at the time of the first sale.

3. Section 321 De Minimis

Under 19 USC 1321, individual shipments valued at $800 or less per day per importer are exempt from US customs duties — including Section 301 tariffs. This de minimis threshold has made direct-to-consumer e-commerce from China economically viable at scale, as individual shipments valued under $800 enter duty-free. However, CBP has significantly tightened enforcement on de minimis abuse — including requiring more detailed data for de minimis entries and actively pursuing importers who artificially split shipments to stay under the threshold. Policy proposals to restrict de minimis for Chinese-origin goods have been actively debated in Congress through 2025-2026.

4. Bonded Warehouses

Goods can be held in a CBP-bonded warehouse for up to 5 years from the date of importation before formal US Customs entry and duty payment. Bonded warehouses allow importers to bring goods into the US without immediately paying Section 301 duties — useful for importers who anticipate tariff changes, need to time duty payment to their cash flow, or want to evaluate demand before committing to duty payment. Goods in bonded storage can be exported without ever paying US import duties.

5. Foreign Trade Zones (FTZ)

Goods admitted to a Foreign Trade Zone as "foreign status" are not yet subject to US import duties. Within the FTZ, goods can be manipulated, processed, assembled, and even manufactured before formal US Customs entry is made. When goods are formally entered from an FTZ, the importer can choose to pay duty on either the imported inputs or the finished product — whichever is lower. FTZs are particularly valuable for manufacturers who import Chinese components and finish them in the US, as the duty rate on the finished product may be lower than the duty rate on the Chinese components plus Section 301.

Use our FTA Optimizer to identify whether any Free Trade Agreements or preferential programs apply to your product category when sourced from alternative countries.

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Tariff Stacking — How Section 301 Combines with Other Programs

One of the most important and commonly misunderstood aspects of Section 301 in 2026 is that Section 301 rates stack additively with other US tariff programs. A company that looks only at the Section 301 rate for its product will systematically underestimate its true effective duty rate. Understanding the full tariff stack is essential for accurate landed cost modeling.

The Full Tariff Stack for Chinese Goods in 2026

For any Chinese-origin product, the effective tariff rate is the sum of all applicable programs:

• MFN Base Rate — the standard column 1 duty rate that applies to all WTO members. Ranges from 0% to 25%+ depending on the product. The US maintains elevated MFN rates on agricultural goods, textiles, footwear, and certain manufactured products.
• Section 301 Rate — 7.5%, 25%, 50%, or 100% depending on which list applies (see above). Applied on top of MFN.
• Section 232 Rate — if the product is a steel or aluminum product (or a derivative thereof), Section 232 adds 25% on steel and 10% on aluminum. Section 232 applies to products of all countries (with country-specific exceptions) — not just China — but Chinese steel and aluminum products bear the full stack of both 232 and 301.
• Section 122 Global Surcharge — the 15% temporary global surcharge enacted in early 2026 applies broadly to Chinese imports for the duration of its implementation period. Check current status as this surcharge has a defined term and may have expired or been extended.
• Antidumping (ADD) and Countervailing Duties (CVD) — product- and manufacturer-specific duties imposed by the International Trade Commission and Commerce Department for products found to be dumped or subsidized. Chinese steel, aluminum, solar, furniture, paper, and hundreds of other categories carry standing ADD/CVD orders that can range from single digits to several hundred percent.

Use our Tariff Stacking Calculator to model the full duty stack for your specific product and origin. Entering only the Section 301 rate into a landed cost model will systematically understate your true cost basis.

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Common Mistakes Importers Make with Section 301

Section 301 has been in effect since 2018, yet importers continue to make costly and avoidable errors in how they calculate, report, and manage their Section 301 exposure. These are the mistakes that most commonly result in duty underpayment (penalties), overcalculation (unnecessary costs), or missed opportunities.

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Frequently Asked Questions