Tariffs
Section 301 & Tariff Stacking Explained
What importers need to know about the current tariff landscape.
The US tariff landscape has changed dramatically in recent years. Section 301 tariffs (on goods of China since 2018, and since July 2026 also on goods of Brazil and of sixty economies) and Section 232 tariffs (steel, aluminum, copper, autos and other goods) apply on top of the normal duty rate. The reciprocal tariffs of 2025 ended in February 2026. 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 targets Chinese goods, with additional duties of 7.5% to 100% on thousands of product categories. After its four-year review (89 FR 76581, September 18, 2024), USTR raised the rates on some goods, for example to 50% on semiconductors and solar cells and to 100% on electric vehicles. These tariffs are in addition to the normal duty rate.
In July 2026, USTR added two Section 301 actions: 25% on most goods of Brazil from July 22, 2026, and 10% to 12.5% on goods of sixty economies, with exemptions, from July 24, 2026.
Reciprocal Tariffs: Ended in February 2026
The reciprocal tariffs of 2025 were imposed under the International Emergency Economic Powers Act (IEEPA). On February 20, 2026, the Supreme Court held in Learning Resources, Inc. v. Trump that IEEPA does not authorize tariffs. Executive Order 14389 of the same day ended the IEEPA duties, and CBP stopped collecting them on goods entered from February 24, 2026. Section 232 and Section 301 duties were not affected.
CBP refunds IEEPA duties with interest through CAPE Declarations in the ACE Portal. A temporary Section 122 duty of 10% applied from February 24 to July 24, 2026.
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 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.
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