Tariff News & Section 301 Updates
The proven, legal strategies to lower duty exposure and protect margins as trade policy shifts.
Section 301 tariffs on China impact billions in imports, adding costs on top of baseline and reciprocal duties. For U.S. companies sourcing electronics, plastics, metals, or textiles, that means higher landed costs and shrinking margins. This guide covers how to identify tariff exposure, check for exclusions, and apply proven strategies to protect your margins.
What's inside
- Tariff engineering: adjust classification and design to legally reduce duty
- Foreign Trade Zones (FTZ): defer, reduce, or eliminate duties on qualifying goods
- Duty drawback programs: recover duties paid on re-exported goods
- First Sale for Export: base duty on the first sale price, not the final invoice
- Supply chain diversification: nearshoring to Mexico or shifting to Vietnam
- HTS code accuracy: correct classification to avoid overpaying
- Case study: a Plan B mold strategy where an $18k mold returned $480k/year in savings
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Recent Tariff Updates. What They Mean for You
Informational summaries only. Confirm specifics with your customs broker or trade counsel before acting.
Global Supply Chains Face Pressure as Retaliatory Measures Expand
Major U.S. trading partners are preparing coordinated counter-tariff actions following recent American trade policy changes. Canada, the EU, and several Asian economies are evaluating additional duties on U.S. exports, prolonged tensions could reshape sourcing patterns across manufacturing and retail worldwide.
Read the full updateApr 29, 2026USTR Expands Hearings as New Tariff Investigations Accelerate
USTR has expanded Section 301 hearings involving imports from China, Vietnam, Mexico, India, and several EU economies, reviewing excess industrial capacity and unfair trade practices in semiconductors, batteries, EVs, and steel. Preliminary tariff recommendations are expected by early summer.
Read the full updateApr 22, 2026Court of International Trade Orders Government to Begin Refunding IEEPA Tariffs
The CIT ruled all importers of record whose entries were subject to IEEPA tariffs are entitled to refunds, roughly $168 billion. CBP requested about 45 days to build refund functionality into ACE; all refunds will be issued via ACH.
Read the full updateApr 20, 2026CBP Launches $166B Tariff Refund Portal After Supreme Court Ruling
After the Supreme Court ruled IEEPA-based tariffs exceeded presidential authority, CBP launched the CAPE portal, letting over 330,000 importers reclaim $166B in duties. Refunds are expected within 60–90 days of submission, file through ACE and confirm eligibility with your customs broker.
Read the full updateApr 18, 2026€93B Counter-Tariff Package Gains Momentum Across Europe
EU officials are moving closer to approving a €93 billion retaliatory tariff package targeting key U.S. exports after American tariff expansions on industrial goods and metals, affecting agriculture, aerospace, machinery, and consumer products.
Read the full updateApr 2, 202650% Tariffs Now Apply to Steel, Aluminum & Copper on Full Customs Value
Effective April 2, 2026, revised Section 232 tariffs subject articles made entirely or almost entirely of steel, aluminum, or copper to a flat 50% tariff on full customs value. Derivative articles with substantial metal content face 25%; metal-intensive industrial equipment 15% through 2027.
Read the full updateMar 10, 2026USTR Initiates 60 Section 301 Investigations Into Failures to Ban Forced-Labor Imports
USTR launched Section 301 investigations into 60 economies, including Canada, the UK, Australia, and Brazil, for failing to enforce bans on importing goods produced with forced labor, creating a second, parallel track for potential new tariffs.
Read the full updateMar 10, 2026USTR Initiates Section 301 Investigations Into Structural Excess Manufacturing Capacity Across 16 Economies
Investigations into China, the EU, Japan, Mexico, Vietnam, India, Korea, and others over structural excess capacity in steel, aluminum, autos, batteries, semiconductors, chemicals, and electronics, widely viewed as the legal pathway to reimpose tariffs once the Section 122 surcharge expires.
Read the full updateFeb 25, 2026New Tariff System Targeting Countries That Acquire Goods/Services from Iran
The Administration established a process to impose additional tariffs on imports from countries that directly or indirectly acquire goods or services from Iran, expanding secondary-tariff risk even for supply chains that avoid Iran-origin goods.
Read the full updateFeb 24, 202610% Global Tariff Imposed Under Section 122 of the Trade Act of 1974
Hours after the SCOTUS ruling, a flat 10% surcharge on most U.S. imports took effect Feb 24 under Section 122, applying uniformly to all countries and limited to 150 days unless Congress extends it. USMCA-qualifying goods and Section 232 products are exempt.
Read the full updateFeb 21, 2026Treasury Secretary Confirms Section 122 Tariff Increase to 15% Expected This Month
The Section 122 global surcharge is set to rise from 10% to 15% (the statutory maximum). Importers should model both scenarios until the formal order is published; the surcharge still expires July 24 unless Congress extends it.
Read the full updateFeb 20, 2026Supreme Court Rules IEEPA Cannot Be Used to Impose Tariffs (Learning Resources v. Trump)
The Supreme Court held 6-3 that IEEPA does not authorize the President to impose tariffs. All IEEPA-based duties were struck down, dropping the effective tariff rate from roughly 14.3% to 7.3% before the Section 122 replacement. Section 232, 301, and AD/CVD tariffs remain in effect.
Read the full updateFeb 6, 2026Additional 25% Duty on Products of India Terminated
An Executive Order eliminated the additional 25% ad valorem duty previously imposed on imports of articles of India, effective Feb 7, 2026, immediate landed-cost relief for Indian-origin imports, with refund and entry-correction considerations depending on timing.
Read the full updateFeb 2, 2026USMCA MHDVs: Process to Apply 232 Tariff Only on Non-U.S. Content
Commerce published submission procedures for importers of USMCA-qualifying medium/heavy-duty vehicles to document U.S. content so the 25% Section 232 tariff applies exclusively to non-U.S. content value, documentation-heavy but a material duty reduction.
Read the full updateSection 301 Tariffs & What They Mean Today
The Section 301 tariffs on China impact billions in imports, adding extra costs on top of the baseline 10% and reciprocal duties. For U.S. companies sourcing electronics, plastics, metals, or textiles, this means higher landed costs and shrinking margins. No surprise many search for Section 301 tariffs on China; the rules are complex, and mistakes get expensive.
At Importivity, we help you identify tariff exposure, check for possible exclusions, and apply proven strategies like tariff engineering, FTZ planning, and nearshoring to Mexico or Vietnam. Staying ahead of Section 301 changes isn't optional; it's how smart importers protect profits.
Key Trump-Era Tariff Changes Impacting Businesses
A running log of the policy changes that move landed costs, from Section 232 proclamations to Section 301 actions and court rulings.
- Feb 11, 2026
India secondary tariff terminated: the additional 25% layer on products of India removed; review entries around the effective date for refunds.
- Feb 2, 2026
USMCA MHDV U.S.-content submission procedures published; documentation workflows required to preserve preferential treatment.
- Jan 20, 2026
Section 232 semiconductor & SME tariffs announced, including derivative products; major impact on chip-related supply chains.
- Jan 9, 2026
Section 232 timber/lumber/furniture tariff increases delayed, giving short-term relief to furniture and construction supply chains.
- Nov 13, 2025
237 HTS agricultural classifications (coffee, cocoa, spices, beef and more) exempted from reciprocal tariffs.
- Nov 10, 2025
US-China deal: fentanyl tariff cut to 10%, reciprocal suspension extended to Nov 2026, Section 301 maritime fees suspended one year.
- Oct 14, 2025
Section 232 timber and furniture tariffs set (10–25%, rising in 2026); UK/EU/Japan rates capped.
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Actionable Steps For Businesses
To navigate the shifting tariff landscape, review your supply chains to identify exposure to affected imports, explore diversification, and adjust financial planning so budgets and margins stay sustainable as import duties rise.
Apply for Tariff Exclusions
Check eligibility for product-specific exclusions through USTR or CBP.
Diversify Supply Chains
Engage alternative suppliers from unaffected regions or countries with lower tariffs.
Cost Mitigation
Renegotiate supplier agreements or adjust pricing strategies to minimize tariff impacts.
Review Relief Programs
Explore eligibility for reimbursement programs related to automotive tariffs and steel/aluminum tariff relief efforts.
Diversifying Supply Chains With a Vietnam Backup Mold
Explore a recent (2025) case study where Importivity helped a business win real tariff relief.
Plan B Mold Strategy: China for Scale, Vietnam for Tariff Relief
How a consumer goods brand neutralized 25% Section 301 exposure by building a backup mold in Vietnam, unlocking six-figure annual savings and real negotiating power.
A U.S. consumer brand relied on one Chinese supplier, and one mold, for a top-selling product. When China Section 301 duties rose to 25%, margins collapsed and disruption risk spiked with no alternative in place.
A duplicate mold and tooling built at a long-standing partner factory in Vietnam for an $18,000 one-time investment, enabling instant production switching if China tariffs spike or supply disruptions hit. Shifting roughly 30% of output (≈ $1.92M of $6.4M production) avoided 25% duty on that volume: about $480k saved per year.
Importivity builds proactive redundancy, duplicate molds, sister factories across countries, and parallel logistics lanes, so clients stay a step ahead of policy shifts, protecting margins and continuity long-term.
Tariff Mitigation Strategies
How Businesses Can Respond to Tariff News
Tariff Engineering
Tariff engineering involves designing or classifying products in a way that legitimately lowers their tariff rate. From adjusting materials to altering assembly processes, we help companies avoid unnecessary duties without compromising quality or compliance.
Foreign Trade Zones (FTZ)
By routing imports through an FTZ, businesses can delay or even eliminate certain tariffs. This approach is especially powerful for high-volume importers or companies handling complex, multi-country supply chains.
Duty Drawback Programs
If your imports are later exported or destroyed, you may qualify for a refund of the duties you initially paid. We help clients navigate the paperwork and timelines to reclaim significant sums that would otherwise be lost.
First Sale for Export
The First Sale rule allows duties to be calculated on the manufacturer-to-middleman price instead of the final sale price. This simple change in documentation can reduce tariff costs by double digits.
Supply Chain Diversification
Relying on a single country means being vulnerable to policy shifts. By diversifying production into Vietnam, Mexico, or other countries, businesses reduce tariff exposure, gain leverage with suppliers, and keep supply chains resilient.