HS Code:
This category pertains to specific articles, the product of China, as outlined in U.S. note 20(h) to the relevant subchapter of the Harmonized Tariff Schedule of the United States (HTSUS). These articles are covered by exclusions granted by the U.S. Trade Representative (USTR) under Section 301 of the Trade Act of 1974, which addresses unfair trade practices. The exclusions typically apply to specific products that were previously subject to additional tariffs due to China's intellectual property practices but have been granted temporary relief based on factors such as availability of alternatives, economic impact, and national security considerations. The exact products within this category vary based on the specific exclusion lists published by the USTR.
Total Trade Volume
Approximately $550 billion USD in total trade affected by Section 301 tariffs, with exclusions covering a subset valued at around $100 billion USD.
Data from 2023
Source
Office of the United States Trade Representative (USTR) and U.S. Customs and Border Protection (CBP) data
$500 billion USD (total Section 301 affected trade)
90% of affected trade under Section 301 of total trade
Stable with periodic fluctuations due to exclusions and tariff adjustments
Primary destination for affected goods
N/A (importer perspective) of total trade
Decreasing reliance on certain Chinese goods due to diversification efforts
$20 billion USD (shifted trade due to tariffs)
3-5% of redirected trade of total trade
Increasing as companies relocate supply chains
Average Rate
25% additional tariff on non-excluded goods under Section 301
Highest Rate
25% on List 1, 2, and 3 goods (prior to exclusions)
Lowest Rate
0% on goods granted exclusions by USTR
Diversification of Supply Chains
U.S. importers are increasingly sourcing from alternative countries like Vietnam, Taiwan, and Mexico to avoid Section 301 tariffs, reducing dependency on Chinese goods.
2021-2023
Extension of Exclusions
Temporary extensions of exclusions by the USTR provide relief to specific industries, stabilizing prices for certain goods while long-term trade policies are negotiated.
2022-2023
Rising Production Costs in China
Increased labor and compliance costs in China are pushing manufacturers to relocate, impacting the competitiveness of Chinese exports even with exclusions.
2020-2023
The USTR announced extensions for certain exclusions under Section 301 tariffs on Chinese goods, covering specific products in U.S. note 20(h), to mitigate economic harm to U.S. businesses.
September 2023
Temporary relief for importers, stabilizing prices for excluded goods but uncertainty remains for long-term trade policy.
The USTR opened a review process for the Section 301 tariffs, seeking input on the effectiveness of tariffs and exclusions, potentially leading to broader policy changes.
November 2022
Possible adjustments to tariff rates or exclusion lists, affecting trade dynamics for Chinese products.
U.S. Customs and Border Protection heightened scrutiny on claims for Section 301 exclusions, requiring detailed documentation to prevent misuse.
March 2023
Increased administrative burden for importers but ensures accurate application of exclusions.