Section 301 Tariffs on China: 2025-2026 Rates, Products, and Exclusions
Section 301 tariffs are additional import duties imposed on Chinese goods under the Trade Act of 1974, currently affecting over $300 billion worth of products at rates ranging from 7.5% to 25%. These tariffs target specific product categories including machinery, electronics, textiles, and industria
Section 301 tariffs are additional import duties imposed on Chinese goods under the Trade Act of 1974, currently affecting over $300 billion worth of products at rates ranging from 7.5% to 25%. These tariffs target specific product categories including machinery, electronics, textiles, and industrial components, and are levied on top of standard customs duties. Understanding which products are affected and navigating the exclusion process is critical for U.S. businesses that import from China.
In this guide, you'll learn:
- The complete history and structure of Section 301 tariff lists (Lists 1-4)
- Current tariff rates for 2025-2026 and which products face additional duties
- How to determine if your imports are subject to these tariffs
- The exclusion process and how to apply for tariff relief
- Recent policy changes and what to expect in 2025-2026
- Strategic compliance options for importers
What Are Section 301 Tariffs and Why Were They Imposed?
Section 301 tariffs are punitive trade measures authorized under Section 301 of the Trade Act of 1974, which allows the U.S. Trade Representative (USTR) to investigate and respond to foreign countries' unfair trade practices. The tariffs on Chinese goods were imposed following a USTR investigation that concluded China engaged in technology transfer requirements, intellectual property theft, and discriminatory licensing practices [USTR Section 301 Report, 2018].
Unlike standard customs duties (which apply to all countries based on Most Favored Nation status or free trade agreements), Section 301 tariffs are additional duties that stack on top of normal rates. For example, a product with a 5% standard duty rate and a 25% Section 301 tariff faces a combined 30% duty rate.
The tariffs were implemented in four tranches between 2018 and 2019, collectively known as Lists 1, 2, 3, and 4A/4B. These lists cover approximately $370 billion in annual imports from China, affecting over 5,700 product categories identified by their Harmonized Tariff Schedule (HTS) codes [U.S. Census Bureau Trade Data, 2023].
Section 301 Timeline: From Investigation to Implementation
Understanding the chronological development of Section 301 tariffs helps importers anticipate policy patterns and prepare for potential changes:
| Date | Action | Impact |
|---|---|---|
| August 2017 | USTR initiates Section 301 investigation into China's technology transfer and IP practices | Formal investigation begins |
| March 2018 | USTR releases investigation findings | Confirms unfair trade practices |
| July 6, 2018 | List 1 effective | 25% tariff on $34B in Chinese goods (818 HTS lines) |
| August 23, 2018 | List 2 effective | 25% tariff on $16B in goods (279 HTS lines) |
| September 24, 2018 | List 3 effective | 10% tariff on $200B in goods (5,745 HTS lines) |
| May 10, 2019 | List 3 rate increase | Rate raised from 10% to 25% |
| September 1, 2019 | List 4A effective | 15% tariff on $120B in goods (3,243 HTS lines) |
| September 1, 2019 | List 4B scheduled | 15% tariff on $160B announced (later suspended) |
| December 15, 2019 | List 4B suspended | Tariffs not implemented due to Phase One agreement |
| January 2020 | Phase One Trade Agreement signed | Commits to List 4A rate reduction |
| February 14, 2020 | List 4A rate reduction | Rate lowered from 15% to 7.5% |
| May 2024 | USTR announces new tariffs | Additional tariffs on EVs, batteries, semiconductors, medical products |
| 2025-2026 | Current status | Lists 1-3 at 25%, List 4A at 7.5%, targeted products up to 100% |
What Products Are Subject to Section 301 Tariffs?
Section 301 tariffs are organized into four lists, each targeting different product categories. The lists were strategically designed to minimize impact on consumer goods initially, then expanded to broader categories.
List 1 Products (25% Tariff)
List 1, effective July 6, 2018, targets industrial and technology products with 818 HTS subheadings including:
- Industrial machinery and equipment
- Aerospace components
- LED and electronic displays
- Nuclear reactor parts
- Medical devices and MRI equipment
- Agricultural and construction machinery
- Plastics and rubber processing equipment
Example: An importer bringing in industrial robots classified under HTS 8479.50.00 pays the standard 2.5% duty plus an additional 25% Section 301 tariff, totaling 27.5%.
List 2 Products (25% Tariff)
List 2, effective August 23, 2018, added 279 HTS lines covering:
- Semiconductors and electronic components
- Chemicals and plastics
- Railway equipment and parts
- Motorcycles and engines
- Optical fiber cables
- Industrial equipment and machinery
List 3 Products (25% Tariff)
List 3, effective September 24, 2018, significantly expanded coverage to 5,745 HTS lines, including many consumer goods:
- Furniture and bedding
- Luggage and handbags
- Bicycle and motorcycle parts
- Lamps and lighting equipment
- Building materials (flooring, wood products)
- Textile fabrics and yarns
- Leather goods
- Chemicals and fertilizers
- Food preparation equipment
- Consumer electronics components
This list represents approximately $200 billion in annual imports and had the broadest impact on U.S. businesses [U.S. International Trade Commission, 2019].
List 4A Products (7.5% Tariff)
List 4A, effective September 1, 2019, initially imposed 15% tariffs but was reduced to 7.5% in February 2020 under the Phase One Trade Agreement. It covers 3,243 HTS lines including:
- Apparel and footwear
- Toys and sporting goods
- Consumer electronics (smartwatches, Bluetooth headphones)
- Textiles and clothing accessories
- Flat panel displays
- Household goods
- Certain food products
List 4B Products (Suspended)
List 4B was announced but never implemented due to the Phase One agreement. It would have covered additional consumer goods worth approximately $160 billion, including smartphones, laptops, and other electronics.
Targeted Products with Enhanced Rates (2024-2025)
In May 2024, USTR announced additional Section 301 tariffs on specific Chinese products, effective in stages through 2026:
| Product Category | Previous Rate | New Rate (2025-2026) | Effective Date |
|---|---|---|---|
| Electric vehicles | 25% | 100% | 2024 |
| Lithium-ion batteries (EVs) | 7.5% | 25% | 2024 |
| Lithium-ion batteries (non-EV) | 7.5% | 25% | 2026 |
| Battery parts | 7.5% | 25% | 2024 |
| Natural graphite | 0% | 25% | 2026 |
| Semiconductors | 25% | 50% | 2025 |
| Solar cells | 25% | 50% | 2024 |
| Syringes and needles | 0% | 50% | 2024 |
| Personal protective equipment | 0-7.5% | 25% | 2024 |
| Steel and aluminum | 0-7.5% | 25% | 2024 |
| Ship-to-shore cranes | 0% | 25% | 2024 |
These targeted increases reflect strategic priorities around clean energy supply chains, critical minerals, and medical supply security [USTR Fact Sheet, May 2024].
How Do I Know If My Products Are Subject to Section 301 Tariffs?
Determining Section 301 applicability requires three steps:
Step 1: Identify Your HTS Code
Every imported product must be classified under a 10-digit Harmonized Tariff Schedule code. The first six digits are internationally standardized; the last four are U.S.-specific. Classification determines both standard duty rates and Section 301 applicability.
Classification resources:
- U.S. International Trade Commission HTS database (hts.usitc.gov)
- CBP's Customs Rulings Online Search System (CROSS)
- Licensed customs broker for complex products
Step 2: Check Section 301 Lists
Cross-reference your HTS code against the official USTR Section 301 lists. The USTR maintains a consolidated tariff tool at the Tariff Actions page on ustr.gov.
TariffCenter.AI provides instant Section 301 lookups, automatically checking your HTS codes against all active lists and showing current rates, exclusion status, and upcoming changes.
Step 3: Verify Country of Origin
Section 301 tariffs apply only to products with Chinese origin. If your product is manufactured in Vietnam, Taiwan, or another country (even if it contains Chinese components), it's generally not subject to these tariffs. However, be aware that CBP scrutinizes transshipment and may require proof that substantial transformation occurred outside China.
Marking and documentation requirements: Products must be marked with country of origin, and importers must maintain records proving origin through manufacturer's affidavits, production records, and supply chain documentation.
What Is the Section 301 Exclusion Process?
The exclusion process allows importers to request exemptions from Section 301 tariffs for specific products. Exclusions are granted based on several criteria, including product availability outside China, impact on U.S. interests, and whether the product is strategically important to Chinese industrial programs.
How Exclusions Work
Product-specific, not company-specific: Exclusions apply to specific HTS codes and product descriptions. If granted, all importers of that product category benefit (though some exclusions have been limited to specific requesters).
Temporary relief: Most exclusions have been granted for one year, with some extended for additional periods. When an exclusion expires, tariffs resume immediately.
Retroactive refunds: Approved exclusions are typically retroactive to the original tariff effective date or to a specified start date, allowing importers to file refund claims with CBP for duties paid during the exclusion period.
Historical Exclusion Rounds
The USTR conducted several exclusion processes between 2018 and 2023:
- 2018-2020: Multiple exclusion rounds covering thousands of products
- December 2022: COVID-related exclusions reinstated for 99 products
- September 2023: New exclusion process announced for 549 previously excluded products
- 2024-2025: Targeted exclusion process for specific categories
As of 2025, most broad exclusions have expired, but USTR periodically opens comment periods for new exclusion requests [Federal Register Notices, USTR, 2023-2024].
How to Apply for an Exclusion
When USTR opens an exclusion comment period (announced via Federal Register and ustr.gov):
1. Prepare detailed product information:
- Complete technical specifications
- HTS classification and List assignment
- Annual import value and quantity
- Detailed explanation of why the product cannot be sourced outside China
- Evidence of attempts to find alternative suppliers
- Economic impact data (costs to your business, impact on U.S. consumers)
2. Submit via regulations.gov:
- Follow the specific docket number and format requirements
- Include supporting documentation
- Meet strict deadlines (typically 30-60 days from announcement)
3. Monitor objections:
- Other parties can file objections to your exclusion request
- You may need to file rebuttal comments
4. Await USTR decision:
- Decisions typically take 3-6 months
- No appeals process for denials
Note: The exclusion process is time-consuming and requires substantial documentation. Many businesses hire trade attorneys or customs brokers to prepare exclusion requests, as technical precision and compelling economic arguments significantly improve approval chances.
Current Section 301 Rates for 2025-2026
For importers planning 2025-2026 shipments, here are the current Section 301 tariff rates:
| List | Number of HTS Lines | Base Tariff Rate | Covered Products | Current Status |
|---|---|---|---|---|
| List 1 | 818 | 25% | Industrial machinery, aerospace, technology | Active, no scheduled changes |
| List 2 | 279 | 25% | Electronics, chemicals, railway equipment | Active, no scheduled changes |
| List 3 | 5,745 | 25% | Consumer goods, building materials, textiles | Active, no scheduled changes |
| List 4A | 3,243 | 7.5% | Apparel, footwear, toys, consumer electronics | Active, rate frozen by Phase One agreement |
| Targeted (2024) | Various | 25%-100% | EVs, batteries, semiconductors, solar, medical | Phasing in through 2026 |
Total estimated import value subject to Section 301 tariffs: Approximately $300-350 billion annually [U.S. Census Bureau, 2024].
Combined Duty Rate Examples
Section 301 tariffs are additive to normal customs duties. Here are real-world combined rates:
| Product | HTS Code | Standard Duty | Section 301 | Combined Rate |
|---|---|---|---|---|
| Electric bicycles | 8711.60.00 | 0% | 25% (List 3) | 25% |
| LED lamps | 8539.50.00 | 3.9% | 25% (List 3) | 28.9% |
| Men's cotton shirts | 6205.20.20 | 19.7% | 7.5% (List 4A) | 27.2% |
| Lithium-ion battery packs | 8507.60.00 | 3.4% | 25% (targeted) | 28.4% |
| Semiconductors | 8542.39.00 | 0% | 50% (targeted 2025) | 50% |
Important: These rates assume products have no other duty relief (like duty drawback, foreign trade zones, or trade preference programs). Always consult a customs broker for product-specific calculations.
What Changes Should Importers Expect in 2025-2026?
Several factors make the Section 301 landscape particularly dynamic in 2025-2026:
1. Potential Statutory Review
Section 301 actions require periodic review. In 2025, legal challenges and statutory review deadlines may prompt USTR to conduct a formal evaluation of all Section 301 tariffs. This could result in:
- Extension of existing tariffs
- Rate modifications
- Removal of tariffs on certain products
- Additional tariffs on new categories
2. Phased Implementation of Targeted Tariffs
The May 2024 targeted tariff increases are implementing on a rolling schedule through 2026. Key upcoming dates:
- 2025: Semiconductor tariff increase to 50%
- 2026: Non-EV lithium-ion battery increase to 25%
- 2026: Natural graphite tariff increase to 25%
3. Potential New Exclusion Processes
USTR has indicated openness to targeted exclusion processes for products critical to U.S. supply chains but not readily available outside China. Industries particularly likely to see exclusion opportunities:
- Advanced manufacturing inputs
- Medical devices and pharmaceutical ingredients
- Clean energy components (despite targeted tariffs on some categories)
- Agricultural equipment
4. Political and Trade Policy Uncertainty
U.S.-China trade relations remain fluid. Potential developments include:
- Negotiation of Phase Two trade agreement
- Additional tariff increases or decreases based on geopolitical factors
- Changes in enforcement priorities
- New tariffs under other authorities (such as Section 232 on national security grounds)
Strategies for Managing Section 301 Tariffs
1. Supply Chain Diversification
Many companies have successfully shifted sourcing to Vietnam, Thailand, India, Mexico, or other countries. Considerations:
- Manufacturing capability and quality in alternative countries
- Total landed cost (including higher production costs, logistics, quality control)
- Lead time and inventory management implications
- Tariff benefits (many countries have preferential trade agreements with the U.S.)
2. Tariff Engineering and Product Redesign
Modifying products to change HTS classification can sometimes move products off Section 301 lists:
- Material substitutions
- Feature additions or removals
- Bundling or unbundling of components
- Caution: Tariff engineering must comply with CB