Section 301 China Tariffs: 2025 Guide

Section 301 of the Trade Act of 1974 authorizes the US President to impose tariffs or other trade actions in response to unfair trade practices by foreign countries. In 2018, the Trump administration used Section 301 authority after USTR determined that China's practices related to technology transfer, IP, and innovation were "unreasonable and discriminatory."

The result: additional tariffs of 7.5%–25% (and in some cases higher) on hundreds of billions of dollars in Chinese imports. These are additional tariffs on top of the standard HTS column 1 duty rate. If a product normally carries a 5% duty and it's on a Section 301 list at 25%, you pay 30% total.

List 1 (effective July 2018): ~$34 billion in imports — primarily industrial goods, machinery, electronics components, and aerospace parts. Rate: 25%.

List 2 (effective August 2018): ~$16 billion in imports — semiconductors, chemicals, plastics, electric motors, and other industrial products. Rate: 25%.

List 3 (effective September 2018, raised to 25% in 2019): ~$200 billion in imports — the broadest list, covering consumer goods, electronics, furniture, textiles, appliances, auto parts, and thousands of other categories. Rate: 25%.

List 4A (effective September 2019): ~$120 billion in imports — consumer electronics (phones, laptops initially included, then excluded), clothing, footwear, and many consumer goods. Rate: 7.5% (originally set at 15%, reduced as part of Phase 1 deal).

Key changes in 2024–2025:

• The Biden administration announced major Section 301 tariff increases effective May 2024 — raising rates on EVs (from 25% to 100%), solar cells (from 25% to 50%), lithium batteries (from 7.5% to 25%), and strategic goods

• Section 232 tariffs on steel and aluminum from China remain in effect and stack with Section 301

• The Trump administration (2025) has added further tariff increases and new categories

Step 1: Go to hts.usitc.gov and look up your 10-digit HTS code.

Step 2: Look for Chapter 99 "Additional U.S. Notes" entries linked to your heading. Section 301 tariffs are collected under Chapter 99 subheadings (e.g., 9903.88.01 through 9903.88.03 for various lists).

Step 3: Cross-reference with USTR's official Section 301 tariff lists at ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions. The USTR publishes the complete list of affected HTS codes for each list.

Step 4: Confirm country of origin. Section 301 tariffs apply to goods that are a product of China. Origin is determined under CBP's substantial transformation rules, not just where the goods were shipped from.

Pro tip: Use CBP's ACE system or your customs broker's tariff management tool to check for Section 301 applicability — USTR lists can be complex to navigate manually.

USTR has granted product exclusions from Section 301 tariffs in several rounds. Exclusions allow specific products to be imported from China without paying the additional Section 301 duties.

How exclusions work:

• Companies petition USTR for a product exclusion by demonstrating the product isn't available from non-Chinese sources and that the tariffs cause severe economic harm

• Exclusions are HTS-code specific (often with additional product descriptions)

• Exclusions have expiration dates — they must be renewed to remain in effect

• Exclusions appear as Chapter 99 subheadings on the HTS

Current exclusion status (2025):

The Trump administration has been reviewing the Biden-era exclusion policies. Check USTR's Federal Register notices for the most current exclusion list. Exclusions can change rapidly, so monitor actively if you're relying on one.

Filing for an exclusion:

Exclusion request windows are opened by USTR periodically. When open, importers and industry groups can file through USTR's online portal. Working with a trade attorney greatly improves your chances of a successful petition.

Companies have used several strategies to manage Section 301 exposure:

Country diversification: Shifting production to Vietnam, Mexico, India, Thailand, and other non-tariffed origins. This has been the most common response for many industries. However, CBP scrutinizes "tariff circumvention" — goods can't simply be routed through a third country without genuine substantial transformation.

Nearshoring to Mexico: USMCA provides duty-free access for qualifying Mexican-origin goods. Mexico has become a major alternative for electronics assembly, automotive parts, and other categories previously manufactured in China.

Component import vs. finished goods import: Some companies import Chinese components (which may face lower tariff rates than finished goods) and complete final assembly in the US or a third country.

First sale valuation: If goods pass through a trading company, using the manufacturer's price as the customs value can reduce the duty base.

Tariff engineering: Legally modifying a product so it classifies under a different HTS code that isn't subject to Section 301. This must reflect a genuine product difference, not just a paper change.

Section 301 tariffs have materially increased landed costs for Chinese-origin goods across thousands of product categories. A product with a 5% base duty rate and a 25% Section 301 tariff now faces 30% in duties — plus MPF, HMF, and potentially anti-dumping/countervailing duties.

For companies importing $1 million per year from China in an affected category:

• At 25% Section 301: $250,000 in additional annual duty costs

• At 100% EV tariff: $1 million in additional duties — effectively prohibitive

This math drives supply chain restructuring, and freight brokers who understand these dynamics are far better positioned to help clients navigate route changes and origin shifts.

CBP has also increased enforcement against tariff circumvention, including investigations into country-of-origin fraud. Penalties for intentional evasion can be severe — up to 4x the unpaid duties plus potential criminal liability.