Understanding Section 301 Tariffs in 2026

Section 301 of the Trade Act of 1974 authorizes the U.S. Trade Representative (USTR) to take action against countries engaged in unfair trade practices. Since 2018, the U.S. has used Section 301 to impose tariffs on hundreds of billions of dollars of Chinese goods, organized into four "lists" (List 1 through List 4B).

Current Rate Structure (2026)

List 1 & 2 — Machinery, industrial equipment, aerospace components: 25% additional duty on ~$34B of imports.

List 3 — Consumer electronics, clothing, chemicals: 25% (raised from 10% in 2019) on ~$200B of imports.

List 4A — Consumer goods including some electronics and apparel: 7.5% on ~$120B.

List 4B — Never activated; covered items like smartphones and laptops already on List 4A.

IEEPA Surcharges Stack on Top

Since 2025, additional tariffs under the International Emergency Economic Powers Act (IEEPA) have been layered on top of Section 301 rates. For most Chinese-origin goods, the effective tariff is now Section 301 rate + IEEPA surcharge + applicable MFN base rate.

Example: A laptop (HTS 8471.30) imported from China:

Exclusion Process

The USTR periodically opens exclusion processes that allow importers to apply for product-specific relief. Exclusions are granted case-by-case, typically valid for one year, and must be renewed. Check the USTR exclusions database before assuming a product is covered by the headline rate.

Practical Steps for Importers

1. Verify the correct HTS code — classification errors are the #1 source of unexpected duties

2. Check for active exclusions at ustr.gov before placing orders

3. Model total landed cost including stacked tariffs, not just base MFN rates

4. Consider origin diversification — Vietnam, India, Mexico offer alternative supply chains

DutyFlow's calculator automatically applies the current Section 301 and IEEPA rates for Chinese-origin goods, so you always see the stacked effective rate in one calculation.