Understanding Section 301 Tariffs on Chinese Goods (2026 Update)
|What Are Section 301 Tariffs?
Section 301 tariffs are additional duties imposed by the US on Chinese imports, on top of regular customs duties. Most Chinese manufactured goods face an additional 25% tariff.
The US weighted-average tariff rate rose from approximately 2% at the start of 2025 to more than 20% โ the highest level in the past 100 years. โ McKinsey, April 2025
|The 2026 Tariff Landscape
Key Events Timeline
- April 2025: Reciprocal tariffs announced; average tariff jumps from ~2% to 20%+
- October 2025: Trump-Xi deal reduces fentanyl tariff from 20% to 10%
- February 20, 2026: Supreme Court strikes down IEEPA tariffs (6-3 decision)
- February 24, 2026: Section 122 global tariff of 15% takes effect
- March 2026: Court orders universal IEEPA duty refunds ($90B+)
|Current Tariff Layers on Chinese Goods
| Tariff Layer | Rate | Status |
|---|---|---|
| Base duty (HTS code) | 0-32% | Permanent |
| Section 301 tariffs | Up to 25% | Active |
| Section 122 global | 15% | Expires Jul 24, 2026 |
| IEEPA tariffs | Various | Struck down โ refunds pending |
The combined effective rate on most Chinese goods is approximately 40%. However, many product categories (furniture, electronics, toys) have 0% base duty, so the effective rate is lower than the headline number.
|Products With 0% Base Duty
Good news โ many popular import categories have zero base duty:
- Most wood and metal furniture (HTS Chapter 94)
- Consumer electronics (phones, tablets, computers)
- Toys and games (Chapter 95)
- Many lighting products
- Kitchen knives and tools
Example calculation for a $5,000 furniture shipment:
| Component | Rate | Amount |
|---|---|---|
| Base duty | 0% | $0 |
| Section 301 | 25% | $1,250 |
| Section 122 | 15% | $750 |
| MPF | 0.3464% | $17.32 |
| HMT | 0.125% | $6.25 |
| Total duties | $2,023.57 | |
| Effective rate | 40.5% |
|Strategies to Minimize Duties
- Correct HTS classification โ Small reclassifications can save thousands
- First Sale Rule โ Use manufacturer's price (not trading company's) as customs value
- Foreign Trade Zones โ Defer duties until goods enter US commerce
- Duty drawback โ Recover up to 99% of duties on re-exported goods
- Section 301 exclusions โ Check USTR exclusion lists for your specific products
HTS misclassification can result in penalties, seizure, and retroactive duty collection. Always work with a licensed customs broker.
Use our free duty calculator at doge-consulting.com/tools/duty-calculator to estimate your total import costs before ordering.
Doge Consulting Team
Sourcing & Logistics Experts ยท Meet the Team
Our team has helped hundreds of businesses import goods from China. We specialize in door-to-door shipping, customs clearance, and product sourcing from China's manufacturing regions.
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