Tariff Exclusions in 2026: What SMBs Need to Know (Even Though There's No Formal Process)

If you're a small or mid-sized business looking for relief from current tariffs, you might expect there's a formal process to apply for an exclusion. After all, previous tariff programs — particularly Section 301 tariffs on Chinese goods — had petition-based exclusion processes that granted hundreds of companies relief.

The reality in March 2026 is more complicated: there is no formal, general exclusion process for most current tariffs. But that doesn't mean there's no relief available. Here's what you need to know.

The Current Exclusion Landscape

Section 301 Exclusions (China Tariffs)

The only active exclusion program with a track record is for Section 301 tariffs on Chinese goods. The Office of the U.S. Trade Representative (USTR) has granted exclusions on 178 product categories, most recently extended through November 10, 2026.

These exclusions were originally granted through a petition process that evaluated:

Whether the product is available from non-Chinese sources
Whether the tariff causes severe economic harm to the petitioner
Whether the product is strategically important to China's industrial policy

If your Chinese imports fall within one of the 178 excluded product categories, you can claim the exclusion by using the specific HTS subheadings designated for excluded products. Check the USTR Federal Register notices for the complete list.

Section 122 (Global Surcharge)

The 15% global surcharge imposed under Section 122 has no exclusion process whatsoever. The statute does not contemplate product-specific exclusions. However, the tariff does not apply to certain product categories that were carved out at inception.

Section 232 (Steel and Aluminum)

Section 232 exclusions exist but are handled through the Commerce Department's exclusion portal. The process has been criticized as slow and backlogged, with some applications taking over a year to process.

Products Already Carved Out

While there's no general exclusion process, a significant number of product categories were carved out from tariffs at the program level. Understanding these carve-outs is critical — you might already qualify for relief without needing to apply.

The 1,039 Product Category Carve-Outs

When the Section 122 tariffs were implemented on February 24, 2026, 1,039 HTS product categories were excluded from the surcharge. Major categories include:

Pharmaceuticals and active pharmaceutical ingredients — Most drug products and APIs are exempt
Semiconductors and advanced electronics — Chips, wafers, and certain electronic components
Medical devices and equipment — Diagnostic instruments, surgical tools, implants
Lumber and wood products — Softwood lumber, plywood, certain wood-based materials
Copper and copper alloys — Raw copper, wire, tubes, and fittings
Energy products — Crude oil, natural gas, uranium, and certain petroleum derivatives

Agricultural Exclusions from Reciprocal Tariffs

Agricultural HTS codes were broadly excluded from reciprocal tariff programs. If you import agricultural products, check whether your specific codes are covered. Key exclusion categories include:

Fresh produce
Grains and cereals
Live animals
Coffee, tea, and spices
Most raw agricultural inputs

How to Check If Your Products Qualify

Step 1: Identify Your Exact HTS Code

The exclusion lists are defined at the 8-digit or 10-digit HTS level. A product might be excluded at one subheading but not another within the same chapter. Precision matters.

Use our HS Code Lookup tool to find the exact classification for your products.

Step 2: Cross-Reference Against Exclusion Lists

Once you have your HTS codes, check them against:

USTR Federal Register notices for Section 301 exclusions
Executive Order annexes for Section 122 carve-outs
Commerce Department portal for Section 232 exclusions

Step 3: Verify with Your Customs Broker

Exclusion eligibility can be nuanced. A customs broker can confirm whether your specific product, as described and valued, qualifies under the published exclusion lists.

The SMB Exclusion Advocacy Push

The U.S. Chamber of Commerce and several trade associations are actively lobbying for a formal SMB exclusion process that would provide relief to small businesses disproportionately affected by tariffs. The proposal includes:

Automatic Exclusions for Small Importers

The Chamber's proposal would automatically exclude businesses importing below a certain annual threshold (proposed at $5 million) from Section 122 surcharges. The argument: small businesses lack the resources to absorb 15%+ tariff increases or to navigate complex exclusion processes.

Simplified Petition Process

For businesses above the automatic threshold, the proposal envisions a streamlined petition process with:

30-day review period (vs. the 6-12 month Section 232 timeline)
Online submission through a dedicated portal
Presumptive approval for products with no domestic alternative
Retroactive relief for duties paid during the review period

Congressional Support

Several bills have been introduced in Congress to formalize SMB tariff relief:

The Small Business Tariff Relief Act would create a permanent exclusion process for businesses under SBA size standards
The Tariff Transparency and Accountability Act would require economic impact assessments before implementing new tariffs

Neither bill has passed as of March 2026, but bipartisan support suggests movement is possible.

What You Can Do Right Now

1. Check Whether Your Products Are Already Excluded

Before assuming you have to pay full tariff rates, verify your HTS codes against the published exclusion lists. You might be leaving money on the table.

2. Claim Section 301 Exclusions Properly

If your Chinese imports qualify for Section 301 exclusions, ensure you're using the correct exclusion HTS subheadings on your entry summaries. Using the standard code instead of the exclusion code means you'll pay the tariff unnecessarily — and CBP will not automatically refund the difference.

3. File for Section 232 Exclusions

If you import steel, aluminum, or derivative products and believe no adequate domestic supply exists, file an exclusion request through the Commerce Department's 232 Exclusions Portal. Be prepared for a long wait, but exclusions can be retroactive to the filing date.

4. Engage Your Trade Association

Industry-specific trade associations are filing collective exclusion requests and lobbying for sector-wide relief. Join the effort — there's strength in numbers.

5. Contact Your Congressional Representatives

The SMB exclusion proposals need political support. Let your representatives know how tariffs are affecting your business with specific numbers and examples.

6. Explore Alternative Sourcing

While advocating for exclusions, simultaneously investigate alternative supply sources. Use our Sourcing Comparison tool to evaluate duty-inclusive costs from different countries.

The Bottom Line

The 2026 tariff exclusion landscape is fragmented and frustrating. There's no single portal where an SMB can apply for broad tariff relief. But between existing carve-outs, Section 301 exclusions, and the growing advocacy push for formalized SMB relief, there are paths to reducing your tariff burden.

Start by checking whether you're already eligible for exclusions you're not claiming. Many importers are paying tariffs they don't owe simply because they haven't verified their products against the exclusion lists.

Use our free HS Code Lookup tool to check your products now.