Chinese goods exported to the United States no longer face a single tariff, but a complex system of seven progressively stacked layers. From basic MFN to Section 301, 232, Section 122, and AD/CVD β each layer applies independently and does not substitute for others. If DDP sellers miscalculate even one layer, profits may be entirely consumed by tariffs.
I. Seven-Layer Tariff Stacking Summary Table
| Layer | Name | Rate | Status |
|---|---|---|---|
| β | Base MFN | Varies by HTS | Permanent |
| β‘ | Traditional Section 301 | 7.5%~100% | Ongoing (no expiry) |
| β’ | Section 122 Temporary | 10% (Global) | β οΈ Until 2026.07.24 |
| β£ | New Global Section 301 | 12.5% (China) | π΄ Expected after 7.24 |
| β€ | Section 232 Steel/Aluminum/Copper | 0%~50% | Ongoing |
| β₯ | Strategic Industry Section 301 | 25%~100% | Ongoing |
| β¦ | AD/CVD (Anti-Dumping + Countervailing) | Up to 200%+ | Determined by industry |
β οΈ Layers β’ and β£ are mutually exclusive β β£ replaces β’ upon implementation, both are not collected simultaneously
II. Traditional Section 301 Four Lists
| List | Covered Categories | Rate |
|---|---|---|
| List 1-2 | Industrial intermediates, machinery, chemicals, hardware | 25% |
| List 3 | Consumer electronics, home goods, small appliances, lighting, toys | 7.5%~25% |
| List 4A | Apparel, textiles, bags, creative consumer goods | 7.5% |
178 exclusions extended to November 10, 2026 (covering solar equipment, medical devices, semiconductor equipment parts, etc.)
III. Section 232 Steel/Aluminum/Copper Tariffs (Post June 2026 Adjustment)
| Category | Bulk Raw Materials | Deep-Processed Finished Goods |
|---|---|---|
| Steel Products | Up to 50% | 0%~25% |
| Aluminum Products | Up to 50% | 0%~25% |
| Copper Products | Up to 50% | 0%~25% |
IV. Strategic Industry Section 301 Additional Tariffs
| Category | Rate | Status |
|---|---|---|
| Pure electric vehicles (complete) | 100% | Effective 2024 |
| Energy storage batteries, PV wafers, semiconductors | 50% | Effective in batches 2024-2025 |
| Non-EV lithium batteries | 25% | Effective 2026.01 |
| Syringes and needles | 50% | Effective 2024 |
V. DDP Composite Tax Formula + Example
Example Calculation: Bath Salt Balls (HTS 3307.30) β United States
| Period | Formula | Composite Rate |
|---|---|---|
| Current (until 7.24) | 4.9% + 25% + 10% | 39.9% |
| After 7.24 (estimated) | 4.9% + 25% + 12.5% | 42.4% |
Deep-processed steel parts β US: Currently 5%+25%+10%+10% = 50%, after 7.24 estimated 52.5%
VI. DDP Business Impact Summary
| Impact | Response |
|---|---|
| Continuous tariff increases | After 7.24, composite rate for Chinese goods rises another 2.5% |
| Transition window risk | DDP quotes must note “subject to tariff rate at time of arrival” |
| Complex Section 232 layering | Large rate gap between raw materials vs finished goods; requires precise HTS verification |
| High AD/CVD risk categories | Furniture/aluminum profiles/PV, etc. β DDP nearly unfeasible (composite rate exceeds 100%) |
VII. FAQ
Q: Will Section 122’s 10% and the new 301’s 12.5% be collected simultaneously?
A: No. They are mutually exclusive β the new 301 12.5% replaces Section 122’s 10% upon implementation; they do not stack. July 24 is Section 122’s expiration date.
Q: Which rate should DDP quotes use?
A: Currently use Section 122 (10%), but after 7.24 may switch to new 301 (12.5%). It is recommended to budget at the higher rate (12.5%) in DDP quotes and note “subject to CBP’s actual assessment at time of arrival.”
Q: What happens after the 178 exclusions expire?
A: Exclusions are valid until November 10, 2026, and may not be extended upon expiry. Excluded categories would return from 0% to original Section 301 rates (25% or 7.5%), significantly increasing DDP costs.
VIII. Further Reading
π§ info@sz-yr.com | π 13662840842 | π Online Consultation
Shenzhen Yinrui International Freight Forwarding Co., Ltd.
Leave a Reply