If you're importing from China in 2026, you're navigating the most complex US tariff environment in decades. Section 301 duties — layered on top of standard MFN rates — have fundamentally changed the landed cost math for nearly every product category. This guide breaks down exactly how to calculate what you owe, what rates apply to common product categories, and how to determine whether your current China lane is still the right call.
How China tariffs are structured in 2026
US tariffs on Chinese imports come from two separate sources that stack on top of each other:
- MFN (Most Favored Nation) base duty — the standard import duty rate that applies to all WTO member countries. For most manufactured goods, this is 0–7.5%.
- Section 301 additional duties — imposed since 2018 under the Trade Act of 1974. Applied in four tranches (Lists 1–4). Rates range from 7.5% to 145% depending on product category.
Both duties are applied to the CIF (Cost + Insurance + Freight) value of your shipment — not just the FOB price. That distinction matters: a $4.50 FOB unit with $0.60 in freight and insurance has a CIF value of $5.10, and tariffs are calculated on $5.10.
Key point: "25% China tariffs" in the news usually refers to Section 301 duties alone. Your actual total duty rate is MFN + Section 301. For electronics, that's often 2.6% + 25% = 27.6% on CIF value.
Section 301 tariff rates by product category (2026)
| Product category | MFN base rate | Section 301 rate | Total effective rate |
|---|---|---|---|
| Consumer electronics (phones, laptops) | 0% | 20–25% | 20–25% |
| Electronic components & PCBs | 0–2.6% | 25% | 25–27.6% |
| Industrial machinery | 0–3.9% | 25% | 25–28.9% |
| Consumer goods (toys, housewares) | 0–7.5% | 15–25% | 15–32.5% |
| Textiles & apparel | 5–32% | 7.5–25% | 12.5–57% |
| Steel & aluminum products | 0–6.5% | 25%+ | 25–31.5%+ |
| Furniture & home goods | 0–9.6% | 25% | 25–34.6% |
| Automotive parts | 0–6.5% | 25–100% | 25–106.5% |
Rates are directional. Exact rates depend on the 8-digit HTS code for your specific product. Always confirm with your customs broker.
How to calculate your true landed cost from China
Here's the formula importers should use:
- Start with FOB price (what your supplier quotes)
- Add ocean freight + insurance to get CIF value
- Apply MFN duty to CIF value
- Apply Section 301 duty to CIF value
- Add customs broker fees (~$150–$300 per entry)
- Add destination charges (port fees, ISF filing, drayage)
- Add last-mile delivery to your warehouse
Worked example: electronics component, 10,000 units/year
| Cost element | Calculation | Amount per unit |
|---|---|---|
| FOB price (China) | Supplier quote | $4.50 |
| Ocean freight + insurance | ~$0.60/unit at 10K units | $0.60 |
| CIF value | $4.50 + $0.60 | $5.10 |
| MFN duty (2.6%) | $5.10 × 2.6% | $0.13 |
| Section 301 duty (25%) | $5.10 × 25% | $1.28 |
| Customs + port fees | Amortized per unit | $0.06 |
| Last-mile delivery | Estimate | $0.15 |
| True landed cost | $7.22 |
That's a 60% markup over the FOB price — before you add any margin. On 10,000 units, your annual import cost is $72,200 vs a quoted FOB cost of $45,000.
The single most common mistake: Importers compare FOB prices between countries without accounting for tariff differences. A Vietnam supplier quoting $5.20 FOB looks more expensive than a China supplier at $4.50 — but after tariffs, the China option costs $7.22 landed vs $6.20 from Vietnam. The "more expensive" quote is actually cheaper.
How to find your exact HS code
Every tariff rate depends on the 10-digit Harmonized Tariff Schedule (HTS) code for your specific product. Two products that look similar can have completely different duty rates depending on material, use case, and technical specifications.
You can look up your code three ways:
- USITC HTS database at hts.usitc.gov — free, authoritative, but requires knowing the classification system
- AI-powered lookup — describe your product in plain English and get an 8-digit suggestion instantly (what SourcingLens does)
- Customs broker — the most accurate option for complex products, but costs $100–$500 per ruling
For most importers, the AI lookup is the right starting point — fast enough for scenario modeling, and accurate enough (85–90% at the 6-digit level) to get directional cost estimates before committing to a broker. See our full HS code lookup guide for a step-by-step walkthrough of the USITC tool and the most common classification mistakes.
Is China still worth it at these tariff levels?
For many product categories, the answer is no — or at least, not without a rigorous comparison. The math has shifted in ways that weren't true even two years ago:
- Vietnam's MFN rates for most manufactured goods are 0–6%, vs 25–32% effective for China
- Mexico's USMCA preferential rates are 0% for qualifying goods, with faster transit times
- India's MFN rates are generally 0–7.5%, with improving supplier ecosystems for consumer goods and textiles
The breakeven analysis depends on FOB price differentials, MOQ requirements, lead times, and quality risk — but the tariff gap alone often justifies a formal comparison before your next contract renewal. We ran the numbers in detail in our Vietnam vs China landed cost comparison.
Run the comparison in 30 seconds
Enter your product category, current supplier country, unit cost, and volume. SourcingLens builds you a side-by-side landed cost table across China, Vietnam, Mexico, and India — free, no sign-up required.
Calculate My Landed Cost Free →Starter analysis ($19) adds exact HS-code tariff rates and a downloadable CSV report.
Frequently asked questions
What are the current China tariff rates in 2026?
Chinese goods entering the US face MFN base duties (0–32% depending on category) plus Section 301 additional duties (7.5–145%). For most manufactured goods, the effective combined rate is 25–35%. Electronics and tech components typically face 25–27.6% combined.
How do I calculate the true landed cost of a China import?
True landed cost = FOB price + freight + insurance + MFN duty (on CIF value) + Section 301 duty (on CIF value) + customs broker fees + destination charges + last-mile delivery. The tariffs alone typically add 27–35% to your CIF value for most manufactured goods.
What is Section 301 and how does it affect China imports?
Section 301 duties are additional tariffs imposed since 2018 under the Trade Act of 1974. They range from 7.5% to 145% and stack on top of standard MFN import duties. As of 2026, they remain in effect for the vast majority of Chinese manufactured goods.
How do I find the HS code for my product?
Use the USITC HTS database (hts.usitc.gov), an AI-powered lookup tool, or a licensed customs broker. The HS code determines your exact tariff rate — a wrong code can result in underpayment (penalties) or overpayment (lost margin).
Are there any China imports exempt from Section 301?
Exclusions exist for specific product lines, but most have expired. Check the USTR exclusion list at ustr.gov. The de minimis exemption (under $800 per shipment) was eliminated for Chinese-origin goods in 2025 — all commercial shipments from China are now subject to full Section 301 duties regardless of value.