2025–2026 Tariff Changes on Chinese Goods: A Plain-English Guide
If you import goods from China, you've likely felt the impact of Section 301 tariffs over the past several years — and the rules keep changing. This guide breaks down the current state of China tariffs in plain English, without the legal jargon, so you can plan your costs accurately.
What Is Section 301?
Section 301 of the Trade Act of 1974 allows the US Trade Representative to impose tariffs in response to unfair trade practices by foreign countries. Since 2018, this authority has been used to impose additional tariffs — ranging from 7.5% to over 100% in some cases — on thousands of Chinese-origin products, layered on top of normal duty rates.
These tariffs are organized into 'Lists' (List 1, 2, 3, and 4A) — each covering different categories of products and carrying different additional duty percentages.
Which Products Are Affected?
Coverage spans a huge range — electronics, furniture, apparel, machinery, auto parts, and industrial components are all commonly affected. Some product categories have received exclusions or exemptions over time, while others have seen rates increase further, particularly in sectors tied to national security like semiconductors and EV batteries.
Because tariff treatment is determined at the 10-digit HTS code level, two seemingly similar products can have very different duty rates. This is why accurate classification matters more than ever — see our HS Classification service for help getting this right.
How to Calculate Your True Landed Cost
Your total duty liability is no longer just the base HTS rate. You need to add: the base duty rate, any applicable Section 301 additional tariff, Section 232 tariffs (if your goods involve steel, aluminum, or certain other materials), and the Merchandise Processing Fee (MPF).
For example, a product with a 3% base duty rate that falls under a 25% Section 301 list would carry a 28% combined duty rate — not including MPF and any freight-related fees.
Strategies to Reduce Your Exposure
Tariff engineering — making legal modifications to a product that change its classification to a lower-duty HTS code — is one legitimate strategy our brokers help evaluate.
First Sale Valuation can also reduce your dutiable value when there are multiple sales in the supply chain (e.g., factory to trading company to you), since duties are calculated on value, not just quantity.
Finally, some importers are restructuring supply chains to source from countries with USMCA, KORUS, or other trade agreement benefits — though this requires careful country-of-origin documentation to avoid CBP scrutiny.
Tariff policy on Chinese goods continues to evolve, sometimes with little advance notice. Aurora monitors USTR and CBP announcements daily and proactively notifies clients when changes affect their HTS codes. If you're unsure how current tariffs affect your specific products, our classification team can run a full landed-cost analysis for you.