Section 301 China Tariffs: Complete Guide for Importers

Complete guide to Section 301 tariffs on China imports. Understand Lists 1-4, current rates (7.5%-25%), exemption processes, and USMCA mitigation strategies.

Last updated: 2024-11-2512 min read

What Are Section 301 Tariffs?

Section 301 tariffs are additional duties imposed on Chinese imports under Section 301 of the Trade Act of 1974. These tariffs were enacted starting in 2018 to address China's unfair trade practices, including intellectual property theft and forced technology transfer.

Unlike regular Most Favored Nation (MFN) duties, Section 301 tariffs are additional charges on top of existing tariffs. This means a product with a 5% MFN duty and 25% Section 301 tariff faces a total of 30% in import duties.

Current Section 301 Tariff Rates (2024-2025)

Section 301 tariffs are organized into four "Lists" based on when they were implemented:

ListProducts AffectedTariff Rate
--------------------------------------
List 1$34 billion (industrial machinery, aerospace)25%
List 2$16 billion (chemicals, plastics, motorcycles)25%
List 3$200 billion (furniture, electronics, apparel)25%
List 4A$120 billion (consumer goods)7.5%

Important: In 2024, the Biden administration announced increases on certain products including EVs (100%), semiconductors (50%), and medical equipment.

How to Check if Your Product is Affected

To determine if your imports face Section 301 tariffs:

  • **Identify your HS code** - The 10-digit Harmonized Tariff Schedule code
  • **Check USTR lists** - Search the USTR website for your HS code
  • **Verify country of origin** - Only China-origin goods are subject to Section 301
  • **Check for exemptions** - Some products have temporary exclusions
  • Our platform automatically checks Section 301 exposure when you enter your product details.

    USMCA: The Most Common Mitigation Strategy

    Many companies eliminate Section 301 tariffs by restructuring their supply chain through USMCA:

    The Strategy:

  • Source components from China (subject to Section 301)
  • Ship to Mexico or USA for substantial transformation
  • Finished product qualifies as USMCA-origin
  • Import duty-free into destination country
  • Example: An electronics company sources PCBs from China (25% Section 301). By assembling finished products in Mexico with 65%+ regional content, the finished product enters the US duty-free.

    Annual savings potential: $50,000-$500,000+ depending on import volume.

    Industries Most Affected by Section 301

    Some industries face particularly high exposure:

  • **Electronics**: PCBs, semiconductors, consumer electronics (25%)
  • **Furniture**: Home and office furniture (25%)
  • **Consumer Goods**: Household products, personal care (7.5-25%)
  • **Medical Devices**: Diagnostic equipment, supplies (25%)
  • **Machinery**: Industrial equipment with China components (25%)
  • Each industry has specific USMCA qualification paths.

    Frequently Asked Questions

    Q: Can I get a Section 301 tariff exemption?

    The exclusion process has largely ended, but some product-specific exclusions remain. The more reliable strategy is USMCA qualification through Mexico/US manufacturing.

    Q: Do Section 301 tariffs apply to goods assembled in China from US parts?

    Yes, Section 301 applies based on country of origin. Even if using US-made components, if the product is substantially transformed in China, it faces Section 301 tariffs.

    Q: How long will Section 301 tariffs last?

    There is no set end date. While periodic reviews occur, importers should plan for Section 301 tariffs to continue for the foreseeable future.

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