What Changed
Effective May 14, 2024On May 14, 2024, the Biden administration announced the results of its four-year statutory review of Section 301 China tariffs as required by law. The review confirmed continuation of all existing tariffs and announced targeted increases on strategic sectors: EVs, solar, semiconductors, batteries, critical minerals, and medical equipment. The increases were phased in with most taking effect September 27, 2024, and others January 1, 2025 and January 1, 2026.
Rate Changes
| Item | Before | After |
|---|---|---|
| Section 301 review announcement | Under review | Tariffs confirmed + increases announced |
Who's Affected
All US importers of Chinese goods, with particular impact on companies in the clean energy, technology, and medical equipment sectors. The review signaled that Section 301 tariffs on China would remain in place for the foreseeable future regardless of administration changes.
Analysis
Biden Administration Announces 2024 Section 301 China Tariff Review (effective 2024-05-14). On May 14, 2024, the Biden administration announced the results of its four-year statutory review of Section 301 China tariffs as required by law. 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.