What Is Section 301?
Section 301 of the Trade Act of 1974 (19 U.S.C. § 2411) authorizes the President of the United States — acting through the US Trade Representative (USTR) — to take action against foreign countries that engage in unfair trade practices. "Unfair practices" includes acts that are:
- Unreasonable or discriminatory and burden US commerce
- Violations of, or inconsistent with, US rights under international trade agreements
Before Section 301 actions, the USTR must conduct an investigation and make a determination. If the finding is affirmative, the USTR can impose tariffs, quotas, fees, or other trade restrictions on the offending country's goods.
The 2018 Investigation and Findings
In August 2017, USTR initiated a Section 301 investigation into China's acts, policies, and practices related to technology transfer, intellectual property (IP), and innovation. After an eight-month investigation, USTR found that China engaged in:
- Forced technology transfer: Requiring US companies to form joint ventures with Chinese partners and transfer technology as a condition of market access
- Discriminatory licensing restrictions: Restricting Chinese companies from paying market-rate royalties to US IP holders
- State-directed acquisition of US companies: Government-directed investment in US firms to acquire cutting-edge technology
- Cyber theft: State-sponsored hacking targeting US commercial technology
USTR valued the annual harm to the US economy at $50 billion or more and recommended tariffs at that level.
The Four Tariff Lists
Tariffs were rolled out across four lists (tranches) based on product categories, with higher rates on products most connected to China's industrial policy:
List 1 — $34 Billion, 25% (Effective July 6, 2018)
818 tariff lines covering industrial machinery, aerospace parts, semiconductors, and motor vehicles. These were the products most directly tied to China's "Made in China 2025" strategic industrial plan.
List 2 — $16 Billion, 25% (Effective August 23, 2018)
279 tariff lines covering plastics, chemicals, semiconductors, and additional industrial machinery.
List 3 — $200 Billion, 10% → 25% (Effective September 24, 2018; Rate Raised May 2019)
The largest and most economically significant list. It covers thousands of consumer and industrial goods including clothing, luggage, electronics components, furniture, and agricultural products. The rate was initially 10%, raised to 25% in May 2019 after Phase One trade deal negotiations stalled.
List 4A — $120 Billion, 7.5% (Effective September 1, 2019; Rate Reduced February 2020)
Covers consumer goods including smartphones, laptops, clothing, and shoes. The rate was set at 15% but reduced to 7.5% as part of the Phase One trade deal.
The Phase One Deal and Exclusion Process
The US and China signed a Phase One trade agreement in January 2020. China committed to purchase an additional $200 billion of US goods over two years. In exchange, the US reduced List 4A from 15% to 7.5% and suspended List 4B. Crucially, Lists 1–3 tariffs at 25% were not reduced.
Simultaneously, USTR operated an exclusion process allowing companies to request exemptions from List 1–4 tariffs on specific products. To qualify, the requestor needed to show:
- The product is not available from US sources or third-country sources
- Significant economic harm would result from the tariff
- The tariff would not meaningfully impact China's unfair trade practices
Exclusions were time-limited (typically 1–2 years) and required renewal. USTR has granted and renewed thousands of exclusions, but the process is not guaranteed and requires active monitoring.
Biden's 2024 Expansion and the 2025 IEEPA Stack
The Biden administration raised Section 301 rates on strategic sectors in May 2024 (EVs to 100%, solar to 50%, batteries to 25%). Then in 2025, the Trump administration added IEEPA tariffs on top of the existing Section 301 rates — creating a "stacking" effect where some Chinese goods face both 25% Section 301 and 125% IEEPA additional duties simultaneously.
The combined rates mean that Section 301 tariffs, though still technically on the books, are now the smaller component of total duty liability for many Chinese goods.
How to Check if Your Product Has Section 301 Tariffs
Section 301 duties are administered through Chapter 99 of the HTSUS. Products subject to additional duties are referenced in the applicable HTS code's "Additional US Notes" or through a Chapter 99 cross-reference. Use our HTS code lookup to identify whether your product's code has Section 301 duties applied, and at what rate.
Bottom Line
Section 301 tariffs created the architecture for the current US-China trade war. Understanding the legal basis — unfair trade practices, IP theft, forced technology transfer — helps explain why these tariffs have proven bipartisan and durable. Even if individual rates change, the Section 301 framework is likely to remain a tool of US trade policy for years to come.