How It Started: Section 301 Tariffs (2018–2019)
The current era of US-China tariffs began in 2018 when the Trump administration imposed Section 301 tariffs under the Trade Act of 1974, citing China's unfair trade practices including forced technology transfer and intellectual property theft.
The tariffs were applied in four lists (tranches):
| List | Value of Goods | Tariff Rate | Effective Date |
|---|---|---|---|
| List 1 | ~$34 billion | 25% | July 2018 |
| List 2 | ~$16 billion | 25% | August 2018 |
| List 3 | ~$200 billion | 10% → 25% | Sep 2018 → May 2019 |
| List 4A | ~$120 billion | 7.5% | September 2019 |
List 4B was temporarily suspended as part of the Phase One trade deal signed in January 2020.
Section 232: Steel and Aluminum
Separately from Section 301, the Trump administration also imposed Section 232 tariffs on steel (25%) and aluminum (10%) from most countries including China, citing national security concerns. These tariffs remain in effect and have raised costs for manufacturers across construction, automotive, packaging, and appliance sectors.
Biden Administration: Continuation and Expansion
The Biden administration retained all Section 301 tariffs following a statutory four-year review. In May 2024, the administration announced significant new tariff increases on strategic sectors:
- Electric vehicles (EVs): 100% (up from 25%)
- Solar cells: 50% (up from 25%)
- Lithium-ion batteries: 25% (up from 7.5%) by 2026
- Steel and aluminum: 25% (maintained)
- Ship-to-shore cranes: 25% (new)
- Medical products (syringes, PPE): 25–100% increases
These increases were framed around protecting US industrial policy investments in EVs, clean energy, and semiconductors made under the Inflation Reduction Act and CHIPS Act.
Exclusion Process
Throughout the tariff regime, USTR has administered an exclusion process allowing companies to apply for temporary exemptions from Section 301 tariffs on specific products. Exclusions are typically granted when:
- The product is not reasonably available from US sources or non-Chinese sources
- The tariff causes severe economic harm to the applicant
Exclusions must be renewed periodically and are not guaranteed. Companies should check the USTR's current list of active exclusions before assuming their product is covered.
How Businesses Have Adapted
Six-plus years of elevated tariffs have reshaped supply chains:
- Vietnam emerged as the primary alternative for electronics assembly and garments
- Mexico gained share in automotive parts, appliances, and light manufacturing
- India and Bangladesh absorbed textile and garment production
- Transshipment risks: CBP has significantly increased enforcement against goods fraudulently routed through third countries to avoid Section 301 duties
For importers, the key takeaway is that country of origin matters enormously. Goods substantially transformed in Vietnam may not carry China tariffs — but "minimal operations" (simply relabeling or minor processing) do not confer a new origin.
What to Expect
US-China trade policy remains a bipartisan issue. The tariff framework established in 2018 is now deeply embedded in US trade law, and no administration has moved to broadly reverse it. Importers should plan for elevated China tariffs as a long-term structural reality, not a temporary policy. Use TariffPeek to look up current rates by HTS code and see which additional duties apply to Chinese-origin goods.