Section 301 and Section 232 are the two trade-defense statutes that survived the post-IEEPA shakeout. They're often discussed together, but they target different problems, use different legal authorities, follow different procedures, and stack onto your duty bill in different ways. If you import from China, both apply. If you import steel or aluminum from anywhere, Section 232 applies regardless of country. If you've ever been confused about which tariff is which — or why your refund eligibility differs between them — this guide walks through the practical differences in detail.
What Section 301 Is
Section 301 of the Trade Act of 1974 authorizes the US Trade Representative (USTR) to investigate and respond to unfair foreign trade practices that burden US commerce. It's a retaliatory tool — designed to push back when another country breaks trade rules, steals intellectual property, or maintains policies that harm US exporters.
The modern Section 301 tariffs trace to August 2017, when the first Trump administration opened an investigation into China's IP theft and forced technology transfer practices. The investigation concluded in March 2018 with findings that justified tariff action. Lists of Chinese-origin goods were progressively assigned 7.5%, 25%, or higher rates — eventually reaching 100% on EVs and 50% on solar cells, semiconductors, and certain medical products under the 2024 Biden update.
Key features:
- Targets specific countries (almost entirely China today)
- Targets specific HTS codes on annually updated lists (List 1, 2, 3, 4A, 4B)
- Rates range from 7.5% to 100% depending on the product list
- Survived multiple court challenges including Court of International Trade review
- NOT struck down by SCOTUS in the IEEPA ruling — still in full force
What Section 232 Is
Section 232 of the Trade Expansion Act of 1962 authorizes the President to adjust imports if the Secretary of Commerce determines that imports of a particular article threaten to impair national security. The legal threshold is fundamentally different from Section 301: this isn't about unfair trade practices, it's about whether US production capacity for a strategic good has been weakened enough to compromise defense or critical infrastructure.
The modern Section 232 tariffs began with the March 2018 proclamations on steel (25%) and aluminum (10%). Coverage expanded through 2025 to include autos, copper, semiconductors, and lumber. In June 2025, the steel and aluminum rates doubled to 50%.
Key features:
- Applies to specific products, regardless of country of origin (with some exemptions)
- Steel: 50% (UK 25% under Economic Prosperity Deal; Australia exempt)
- Aluminum: 50%
- Autos: 25% (with carve-outs for USMCA-qualifying vehicles)
- Copper: 50%
- Semiconductors: 25%
- Lumber: 10%
- Justified by national security findings, not trade practice findings
- NOT struck down by SCOTUS in the IEEPA ruling — still in full force
Section 301 vs Section 232: Side-by-Side
The two regimes differ on every meaningful dimension. The table below summarizes how each one is structured and how they apply at the entry summary level.
How They Stack on a Single Entry
For most importers, the real question isn't which regime applies — it's how they stack together on a single shipment. Here's the order of operations for a typical 2026 entry:
1. MFN base rate. The default duty from the HTS classification (usually 0-15%).
2. Section 122 (10% flat). Currently applies to all countries pending court appeal (expires July 24, 2026 unless extended).
3. Section 232. If the product is covered (steel, aluminum, autos, copper, semis, lumber), add 25-50%.
4. Section 301. If the country of origin is China, add 7.5-100% depending on the HTS list.
5. AD/CVD. If subject to active antidumping or countervailing duty orders, add those rates on top.
6. MPF + HMF. Merchandise Processing Fee (0.3464%, min $31.67) and Harbor Maintenance Fee (0.125%, ocean only).
Worked example: Chinese steel sheet (HTS 7208).
- MFN: 0%
- Section 122: 10%
- Section 232: 50%
- Section 301 (List 3): 25%
- Total: 85% effective duty rate before MPF/HMF and any AD/CVD margins.
This stacking is why importers from China shifted aggressively to Vietnam, Mexico, and India in 2024-2025 — even with Section 122's 10% flat applied, the absence of Section 301 changes the math significantly.
Refund Eligibility: Different Rules
Both regimes are currently in force, so neither generates a refund pool the way IEEPA does. But the refund logic differs in important ways importers should understand:
Section 301 refunds are available only through:
- Product-specific exclusions granted by USTR (most have expired or been narrowed)
- Liquidation protests under 19 U.S.C. § 1514 if there's a basis to dispute application
- Court of International Trade litigation challenging the underlying statutory authority (the major *HMTX/Jasco* case settled the legal validity in 2023)
Section 232 refunds are available through:
- Country exemptions (UK Economic Prosperity Deal applied retroactively in narrow windows)
- Product-specific exclusions under the Department of Commerce exclusion process
- Reclassification if the original HTS classification was incorrect
Neither regime supports a CAPE-style mass refund program. If you paid Section 301 or Section 232 on Chinese steel or aluminum in 2025, that money is generally not refundable unless you have a specific exclusion or classification basis.
IEEPA refunds — the $166 billion pool flowing through CAPE — apply only to the IEEPA reciprocal tariffs in effect between April 2025 and February 2026, not to Section 301 or Section 232.
Strategic Implications for Importers
Three things matter for sourcing and compliance planning in 2026:
1. Section 301 is country-driven; Section 232 is product-driven. Switching sourcing from China to Vietnam eliminates Section 301 exposure for most products. Switching steel sourcing from China to Korea does *not* eliminate Section 232 exposure — steel from any country (except the narrow UK/Australia exemptions) faces 50%.
2. Exclusions are how you fight back, not litigation. The CIT has affirmed both statutes' validity. The practical path to lower duty on covered goods is through the USTR Section 301 exclusion process or the Commerce Section 232 exclusion process — not litigation challenging the underlying authority.
3. Stacking compounds fast. A Chinese steel importer is paying close to 85% before AD/CVD. A Chinese consumer electronics importer is paying 35-60% depending on the HTS list. Modeling the stack accurately is the difference between profitable sourcing and pricing yourself out of a market. Run your specific HTS code through our [tariff calculator](/tariff-calculator) to see the full stack for your goods.
Key Takeaway
Section 301 and Section 232 will outlive the IEEPA refund window. They're structural features of US trade policy — neither party has signaled interest in dismantling them. Build your sourcing strategy and compliance program around the assumption that both regimes are permanent. The refund opportunity is IEEPA; the planning opportunity is Section 301 country diversification and Section 232 exclusion filings.
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