Section 301 Tariffs
Section 301 Tariffs Import duties imposed by the United States under Section 301 of the Trade Act of 1974 in response to unfair trade practices by foreign countries. These tariffs have primarily been applied to goods from China since 2018.
Latest Update (March 2025)
The Biden Administration is reviewing the continuation of Section 301 tariffs amid lobbying pressure from U.S. manufacturers and retailers.
Read USTR Press ReleaseWhat It Means
Section 301 tariffs are special taxes that the U.S. government places on goods imported from countries it believes are engaging in unfair trade practices.
Legal Authority
Named after Section 301 of the Trade Act of 1974, these tariffs give the President authority to take action against foreign practices that restrict U.S. commerce.
How They're Used
Unlike regular tariffs, Section 301 tariffs are specifically designed as a response to what the U.S. considers unfair trade practices:
IP Theft
Unauthorized use of patents, trade secrets, and copyrights
Forced Technology Transfer
Requirements for foreign companies to share technology to access markets
Market Access Barriers
Restrictions that limit U.S. companies' ability to compete in foreign markets
Current Application
Since 2018, they've been most prominently used against China, with tariffs ranging from 7.5% to 25% applied to hundreds of billions of dollars worth of Chinese imports.
Impact on Businesses
These tariffs affect businesses importing affected products, which must either:
- Absorb the additional costs, reducing profit margins
- Pass costs to consumers through higher prices
- Find alternative suppliers in non-affected countries
- Apply for exclusions (difficult to obtain and usually temporary)
Historical Timeline
USTR Section 301 Investigation Concludes
USTR finds that China's acts, policies, and practices related to technology transfer, IP, and innovation are unreasonable and burden U.S. commerce
List 1 Tariffs Implemented (25%)
$34 billion of Chinese imports, primarily industrial equipment and machinery
List 2 Tariffs Implemented (25%)
$16 billion of additional Chinese products
List 3 Tariffs Implemented (10%)
$200 billion of Chinese goods (later increased to 25% in May 2019)
List 4A Tariffs Implemented (15%)
$112 billion of Chinese consumer goods (later reduced to 7.5% under Phase One deal)
Statutory Four-Year Review Concluded
USTR announced continuation of tariffs with some modifications
Real-World Example
Case Study: China Section 301 Tariffs
Starting in 2018, the United States imposed Section 301 tariffs on Chinese goods in four separate lists or "tranches":
Many of these tariffs remain in effect in 2025, despite changes in administration and various trade negotiations. Companies importing affected goods from China must pay these additional duties unless they've received specific exclusions.
Impact Example
A U.S. electronics manufacturer importing microcontrollers from China that fall under HTS code 8542.31.0000
would face:
0% Most Favored Nation duty rate
Base rate for electronics
25% Section 301 tariff
Additional China-specific duty
25% Total duty rate
Significant cost increase on imports
This significantly increases component costs and may lead the company to:
- Absorb the additional costs, reducing profit margins
- Pass costs to consumers through higher prices
- Seek alternative suppliers in countries not subject to the tariffs
- Apply for exclusions if their specific use case qualifies
Section 301 Tariff Tranches (2018-Present)
List | Date | Value | Rate | Focus |
---|---|---|---|---|
List 1 | July 2018 | $34 billion | 25% | Industrial equipment, machinery |
List 2 | August 2018 | $16 billion | 25% | Electronics, plastics, chemicals |
List 3 | Sept 2018 | $200 billion | 10% → 25% | Wide range of goods |
List 4A | Sept 2019 | $112 billion | 15% → 7.5% | Consumer goods |
Calculate Your Section 301 Tariff Costs
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Request a Free ConsultationFrequently Asked Questions
Yes, the USTR has established an exclusion process for certain products. Companies can submit requests explaining why their imports should be exempt, typically based on lack of alternative suppliers, severe economic harm, or strategic importance. However, the exclusion process is rigorous, and many requests are denied. Exclusions, when granted, are also typically time-limited and may require renewal.
No, Section 301 tariffs are applied to specific lists of products, identified by their HTS (Harmonized Tariff Schedule) codes. The USTR selects products strategically to maximize pressure on the foreign country while minimizing harm to U.S. consumers and businesses.
Section 301 tariffs address general unfair trade practices by a country, such as intellectual property theft or market access barriers. In contrast, antidumping duties target specific products sold below fair market value, and countervailing duties offset foreign government subsidies on specific exports. Section 301 is broader in scope and more explicitly tied to U.S. trade policy objectives.
Yes, countries subject to Section 301 tariffs can challenge them through the World Trade Organization (WTO) dispute settlement system. China has filed such complaints, arguing that unilateral U.S. tariffs violate WTO rules. However, the WTO dispute resolution process is lengthy, and the U.S. has argued that its actions are justified under international trade law.
Yes, many Section 301 tariffs on Chinese goods remain in effect in 2025. Following the statutory four-year review in 2022-2023, the U.S. Trade Representative decided to continue the tariffs with some modifications. The Biden Administration is currently conducting another review of the tariffs, but no major changes have been announced yet.