What Changed
Effective May 10, 2019After the collapse of US-China trade negotiations, the Section 301 List 3 tariff rate was raised from 10% to 25% effective May 10, 2019. List 3 covered $200 billion in Chinese goods including furniture, electronics components, auto parts, and industrial goods. The rate increase represented a dramatic escalation of the trade war and triggered Chinese retaliation on US agricultural exports. List 3 goods remain at 25% today.
Rate Changes
| Item | Before | After |
|---|---|---|
| S301 List 3 Chinese goods ($200B) | 10% S301 | 25% S301 |
Who's Affected
US importers of the broadest and most economically significant tranche of Section 301 goods — furniture manufacturers, electronics importers, auto parts suppliers, and industrial goods buyers. The increase from 10% to 25% doubled the tariff cost on $200 billion of Chinese imports and accelerated supply chain diversification away from China toward Southeast Asia.
Analysis
Section 301 List 3 Raised from 10% to 25%: $200 Billion in Chinese Goods (effective 2019-05-10). After the collapse of US-China trade negotiations, the Section 301 List 3 tariff rate was raised from 10% to 25% effective May 10, 2019. Section 301 of the Trade Act of 1974 authorizes the USTR to investigate and respond to unfair trade practices by foreign governments, including subsidies and discriminatory policies that harm US commerce. The ongoing Section 301 action against China was initiated in 2018 and covers tens of billions of dollars in Chinese imports across four product lists. A four-year statutory review conducted in 2024 resulted in targeted increases on strategic sectors — electric vehicles, solar cells, batteries, semiconductors, and critical minerals — reflecting bipartisan consensus on the need to protect US competitiveness in clean energy and technology. Section 301 tariffs stack on top of the base MFN rate and, for certain products, on top of the Section 122 surcharge as well, creating compound tariff rates that can exceed 100% for some Chinese goods. The 2024 review confirmed that existing tariffs on Chinese goods will remain in force, providing businesses with certainty that Section 301 rates are not a temporary measure. USTR's approach of using "replacement rates" — where the 2024 increases replace the base list rates rather than stacking on top of them — is critical to understand when calculating effective tariff costs. For example, Chinese EVs face a 100% Section 301 rate that replaces the prior 25% rate; they do not face 125%.
Impact & Next Steps
Importers of Chinese goods should verify the specific List (1, 2, 3, or 4A) that applies to their HTS codes, as rates vary by list. The 2024 review replacement rates (EVs at 100%, solar at 50%) apply as final rates, not as additions to prior rates. Country-of-origin rules apply: products substantially transformed in China are subject to S301 even if shipped from a third country. Consider supply chain diversification for strategic categories to reduce S301 exposure.