Section 301 Tariffs: China Trade Lists, Current Rates, and What They Mean for Importers

What Is Section 301?

Section 301 of the Trade Act of 1974 grants the US Trade Representative (USTR) broad authority to investigate and respond to foreign trade practices that are unfair, unreasonable, or discriminatory toward the United States. When a foreign government's actions burden US commerce, USTR can impose tariffs, fees, or other restrictions — without requiring congressional action — to pressure the trading partner into changing its behavior.

The statute was designed as a negotiating tool, not a permanent revenue mechanism. In practice, however, the Section 301 tariffs on China have become a durable fixture of US trade policy that both Democratic and Republican administrations have maintained, extended, and in several cases increased.

The current round of Section 301 tariffs stems from a formal investigation launched in August 2017 into China's policies and practices related to technology transfer, intellectual property, and innovation. The investigation concluded in March 2018, finding that China systematically engaged in:

• Cyber-enabled theft of US trade secrets, commercially valuable business information, and source code
• Requiring US companies to enter into joint ventures or technology licensing agreements as a condition of Chinese market access
• Directing state-backed entities and sovereign wealth funds to acquire US technology companies and assets in targeted sectors
• Systematic licensing restrictions that deny US firms the ability to set market-based terms for technology agreements

What followed was the largest peacetime expansion of US tariff policy in decades — four separate lists of Chinese products subject to additional duties, rolled out between July 2018 and September 2019. Unlike base HTS duties that apply uniformly to all countries, Section 301 tariffs are a country-specific surcharge applied exclusively to goods with China as the country of origin.

Section 301 Tariff Rates by List

Section 301 tariffs were implemented in four tranches, commonly called Lists 1 through 4. Each list covers a defined set of 8-digit HTS codes at a specific rate. Here is the complete breakdown:

List 4B — originally covering an additional ~$180B in consumer goods — was suspended under the Phase One trade deal signed in January 2020 and has never been reimposed. List 4A was reduced from 15% to 7.5% under that same agreement; Lists 1, 2, and 3 were not reduced.

List 1 targeted industrial inputs and components where the US wanted maximum pressure on Chinese manufacturers without immediately hurting US consumers. List 3 was the broadest and most consequential — covering everything from consumer electronics and furniture to auto parts and agricultural machinery. The order in which the lists were deployed also matters legally: earlier lists have been in force longer and are therefore more entrenched in supply chain decisions.

Live Data: Section 301 Coverage Across the HTS Schedule

Unlike static reference pages, we query the actual HTS tariff database in real time. Here is the current count of US tariff lines carrying a Section 301 surcharge, broken down by rate tier:

The concentration of HTS codes at 25% reflects the dominance of Lists 1, 2, and 3. The 7.5% bucket is primarily List 4A consumer goods. Higher rate tiers such as 50% and 100% represent targeted strategic-sector modifications sourced from USTR notices and reflected in the tariff database when assigned to HTS lines.

2024–2026 Strategic Rate Increases

The Trade Act of 1974 requires a formal four-year review of Section 301 tariffs. Following that review, USTR announced significant rate increases on strategically important product categories. These increases take effect in phases between September 2024 and January 2026. The table below is structured data sourced from USTR's four-year review modification notice, not one-off prose:

The 100% rate on Chinese electric vehicles is functionally prohibitive — it effectively closes the US market to Chinese EV manufacturers. The semiconductor and solar cell increases to 50% signal a broader industrial policy shift toward reshoring critical supply chains. The medical product increases stem from supply chain vulnerabilities exposed during the COVID-19 pandemic, when US hospitals found themselves dependent on Chinese manufacturers for basic protective equipment.

These increases compound with the applicable tariff stack. A Chinese solar panel, for example, may face 50% Section 301 plus base duty and any product-specific AD/CVD exposure; Section 122 only applies where the current HTS/legal notes do not exclude the goods. Use the calculator for the code-specific stack.

How Section 301 Stacks with Other Tariffs

Section 301 tariffs do not replace your other duties — they add to them. US import duties are additive. For goods from China, the complete tariff stack is:

A worked example: importing $100,000 of hot-rolled steel (HTS 7208.27) from China. If the code is covered by Section 301 List 1 and Section 232 steel, the current model is base MFN + Section 301 + Section 232; Section 122 should not be blindly added when the applicable notes exclude Section 232 goods.

Use our landed cost calculator to model the exact stack for your product, including freight, insurance, MPF, and HMF. The tariff simulator lets you run what-if scenarios — such as removing Section 301 by switching to a non-China source.

Strategies to Reduce Section 301 Exposure

1. Country-of-Origin Diversification

The most effective strategy. Section 301 tariffs apply exclusively to Chinese-origin goods. Moving production to Vietnam, India, Thailand, Mexico, or any other country eliminates the surcharge entirely — provided the goods genuinely originate there. CBP scrutinizes transshipment, so the country change must reflect real manufacturing, not just final assembly or relabeling. Use our country comparison tool to compare total landed cost from different origins side by side.

2. Tariff Engineering and Reclassification

Section 301 tariffs are tied to specific 8-digit HTS codes. Minor product modifications — changing a material, adding a component, altering the manufacturing sequence — can legitimately shift a product to a different HTS classification that carries a lower or zero Section 301 rate. This is legal and common in customs practice, but requires a binding ruling or CBP guidance to execute safely. Search your HTS code to see whether nearby classifications carry different Section 301 exposure.

3. Foreign Trade Zone (FTZ) Utilization

FTZs are designated areas inside the US where goods can be stored, assembled, or manufactured before customs entry. They do not eliminate Section 301 tariffs but offer timing advantages and, in some manufacturing scenarios, an “inverted tariff” election — paying duty on the finished product at a potentially lower rate rather than on imported components.

4. First Sale Valuation

If your supply chain involves a middleman, you may be eligible to base customs duties on the price the middleman paid the Chinese factory (the “first sale”) rather than the price you paid. Since the first sale price is lower, your duty calculation — including Section 301 — is reduced proportionally. Requires documented, arm's-length transactions throughout the supply chain.

5. FTA Benefits for Alternative Sources

The US has free trade agreements with 20 countries. If you are diversifying out of China, sourcing from an FTA partner — Mexico (USMCA), South Korea (KORUS), Australia (AUSFTA) — can reduce your base MFN duty to 0% on top of eliminating Section 301. Use our FTA checker to verify eligibility for your specific HTS code.

The Section 301 Exclusion Process

USTR has periodically offered product exclusion rounds where importers can petition for temporary relief from Section 301 tariffs on specific HTS codes. When granted, an exclusion retroactively removes the Section 301 surcharge for a defined period — typically 12 months — without requiring any change to supply chain or country of origin.

The exclusion program has been inconsistently administered. In the first round, USTR received over 50,000 exclusion requests and approved roughly 30–35%. Many approved exclusions subsequently expired without renewal. During the COVID-19 pandemic, USTR granted targeted exclusions for medical supplies, but most have also lapsed. Exclusion status should be read from the current USTR/App DB configuration rather than assumed from old page copy.

Exclusion rounds can reopen with relatively short notice. Monitoring USTR Federal Register notices and setting tariff change alerts on your key HTS codes is the most reliable way to catch new exclusion opportunities as they arise.

Section 301 Timeline: 2017–2026

How to Check If Your Product Is Subject to Section 301

The fastest method is to search your product's HTS code in our tariff database. Enter an 8- or 10-digit HTS code and you will see the base MFN duty rate, Section 301 rate, Section 232 status, and Section 122 applicability — all in one place. If you do not know your HTS code, search by product description and our AI will identify the correct classification.

For a category-level view, browse by HTS chapter. The following chapters contain the largest numbers of Section 301-affected codes:

Related Tools and Pages