Section 301 – The “Original” China Tariffs

For a tutorial on how to check to see which Section 301 Tariff applies to your products produced in China, download this PDF for just $10!

Section 301 of the Trade Act of 1974 was established to empower the United States Trade Representative (USTR) to address unfair foreign trade practices that harm U.S. commerce. It allows the USTR to investigate and take action against foreign countries that violate trade agreements or engage in practices deemed “unjustifiable” or “unreasonable”.

In its early years, Section 301 was frequently used to open foreign markets for U.S. exporters. The 1980s saw a surge in its application, particularly under the Reagan administration, as the U.S. sought to address trade imbalances and protect domestic industries. However, the establishment of the World Trade Organization (WTO) in 1995 introduced a formal, rule-based system for resolving trade disputes, leading to a decline in the use of Section 301.

The Trump administration revived the use of Section 301 in 2017, targeting China’s policies on intellectual property, technology transfer, and innovation. This led to the imposition of tariffs on a wide range of Chinese imports, marking a significant shift in U.S. trade policy. These measures have since been maintained, with some modifications, under the Biden administration.

• 2018: The Trump administration imposed tariffs on approximately $250 billion worth of Chinese goods in response to China’s practices related to intellectual property and technology transfer. These tariffs were implemented in multiple rounds, with rates ranging from 7.5% to 25%.

• 2020: The U.S.-China Phase One trade deal was signed, leading to some adjustments in tariffs. However, many of the existing tariffs remained in place.

• 2022: The Biden administration extended certain tariff exclusions and initiated a four-year review of the Section 301 tariffs. This review aimed to assess the effectiveness and impact of the tariffs.

• 2024: Following the review, the Biden administration increased tariff rates on $18 billion worth of Chinese exports, citing ongoing concerns about China’s trade practices.

• 2025: The Trump administration, after re-election, adds an additional 20% duty on Chinese imports citing the International Emergency Economic Powers Act. This increase affected all products subject to Section 301 tariffs and was part of broader measures to address trade imbalances and national security concerns. 

These tariffs have had significant implications for global trade dynamics and U.S.-China relations.

For a tutorial on how to check to see which Section 301 Tariff applies to your products produced in China, download this PDF for just $10!