Section 301 & Reciprocal Tariffs Explained

The US tariff landscape has changed dramatically in recent years. Between Section 301 tariffs (targeting China), Section 232 tariffs (steel and aluminum), and new reciprocal tariffs, importers face an increasingly complex duty environment. Understanding which tariffs apply to your products is critical to controlling costs.

What is Section 301?

Section 301 of the Trade Act of 1974 allows the US Trade Representative (USTR) to impose tariffs in response to unfair trade practices. The most significant Section 301 action targeted Chinese goods, resulting in additional duties of 7.5% to 25% on thousands of product categories. These tariffs are in addition to the normal duty rate.

Reciprocal Tariffs

Reciprocal tariffs are designed to match the tariff rates that other countries impose on US exports. These tariffs can vary significantly by country and product. The rates are assessed under Chapter 99 of the HTS and are layered on top of existing duties, making accurate classification and country-of-origin determination more important than ever.

How to Minimize Impact

• Accurate classification — Some products fall outside the scope of tariff lists
• Exclusion requests — Some products qualify for exclusions from 301 tariffs
• Country of origin — Substantially transformed goods may avoid country-specific tariffs
• Duty drawback — Recover up to 99% of duties on goods that are re-exported
• First sale valuation — Use the manufacturer's price rather than middleman price for duty calculation

Stacking: Multiple Tariffs on One Product

A single product can be subject to the regular duty rate plus Section 301 plus Section 232 plus reciprocal tariffs plus AD/CVD duties. This "stacking" can push the total duty rate well above 50% for some products. Accurate calculation is critical—both underpayment and overpayment create problems.