If you sell cross-border into the US, you need to understand Section 301. Not the legal mechanics, but the commercial reality: it is the tool that added 7.5% to 25% in extra duties on top of base rates for China-origin goods, and the US government just signaled it is coming for a much wider set of sourcing countries.
Here is what is changing, what it could cost you, and what to do now.
What Section 301 actually does to your landed cost
Section 301 is a US trade remedy tool. When USTR (the US Trade Representative) investigates a country's trade practices and finds them harmful, it can impose additional import duties on specific product categories from that country. These duties stack on top of everything else: base duty rates, any other applicable measures.
The stacking effect is what makes this so impactful for ecommerce margins. A simple example:
- Base MFN duty on your product: 4%
- Section 301 additional duty: 25%
- Section 122 global surcharge: 10% (currently in effect, temporary)
- Section 232 national security duties: additional layer where applicable (not universal; for metals and auto commodities)
- Total: 39% from base + 301 alone, before any Section 232 that may apply
For merchants sourcing from China today, this is not hypothetical. USTR formally adjusted one tranche of China Section 301 duties in early 2020, reducing additional rates from 15% to 7.5% for certain products. Other lists stayed higher. The total duty burden for China-origin goods in many ecommerce categories sits materially above what base rates alone would suggest.
The reason this matters now is simple: that same framework is about to be applied to a much wider set of countries.
What is changing: a new 301 investigation covering new countries
On March 11, 2026, USTR published a new Section 301 initiation. The focus: industrial excess capacity and production in manufacturing sectors. The scope: sweeping.
The investigation explicitly names: China, the EU, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India.
For ecommerce operators, that list maps almost exactly to the countries merchants have been moving production to over the past few years in order to reduce duty exposure away from China. If you moved production to Vietnam, Malaysia, Indonesia, or India specifically to reduce your US duty bill, those origins are now explicitly named in this investigation.
The illustrative sector list from the notice overlaps heavily with what ecommerce merchants actually sell: electronics, machinery, chemicals, plastics, semiconductors, autos, batteries, and more.
What the timeline looks like
Section 301 is not an overnight switch. There is a formal process: USTR initiates, opens a public docket, holds hearings, then decides whether and how to act. For this investigation, the clock is already running.
| Milestone | Date |
|---|---|
| Investigation initiated | March 11, 2026 |
| Public comment docket opens | March 17, 2026 |
| Written comments due | April 15, 2026 |
| Hearings begin | May 5, 2026 |
| Potential duty outcomes | Summer 2026 and beyond |
Summer is a realistic window for concrete outcomes. For merchants planning inventory, pricing, and origin strategy, that is a short runway.
Who is most exposed
| Product origin | Exposure level | Why |
|---|---|---|
| Made in China | Already paying additional 301 duties on many categories | China 301 has been in force since 2018; this investigation could add or expand coverage to more product categories |
| Made in Vietnam, Malaysia, Indonesia, Thailand, Cambodia | High | All named in the new 301 initiation; products shifted here from China to reduce duties are now explicitly in scope |
| Made in India, Korea, Taiwan, Japan, Mexico | Moderate to high | All named in the investigation; exposure depends on product category and HS classification |
| Made in the EU | Lower for most ecommerce goods, but not zero | EU is named; prior 301 history focused on non-consumer sectors (e.g. large civil aircraft) |
| Made in the UK | Minimal direct 301 exposure | UK is not named in the current investigation; existing Section 122 surcharge applies separately |
| Made in other countries (not named) | Low direct 301 risk | Not currently in scope, but global sourcing cost shifts may still affect pricing indirectly |
What to do before summer
Audit your HS codes and origin by SKU
Duty math only works if the inputs are right. If your product data is messy, your landed cost estimates will be wrong when rates move.
Run stacking scenarios on your best sellers
Model base duty plus a 7.5%, 15%, and 25% Section 301 add-on. See where margin breaks.
Do not assume your alternate sourcing lane is safe
If you shifted sourcing to Vietnam, Malaysia, or Indonesia, those origins are explicitly in scope of this investigation.
Get classification and country-of-origin documentation tight
Rules-of-origin questions get harder when duties vary by origin. Clean paperwork is a buffer against disputes.
Start pricing and promo scenarios now
If summer brings new duty rates, merchants who have already modeled the impact can move quickly. Those who have not will be reacting.
How Teleship keeps you covered
Section 301 changes create two problems for merchants: margin compression from higher duties, and broken checkout pricing when rates change and your duty calculation is stale. Teleship is built to absorb this volatility. We track Section 301 outcomes and update duty logic automatically, so your checkout always reflects current landed cost by origin, product category, and destination. When rates change, you do not have to rebuild your pricing stack.
If you want to model your exposure today, share your top categories and sourcing countries with us and we will run the numbers. Contact us to get started.
Teleship is a UK-based cross-border shipping and compliance platform. This post is for informational purposes only and does not constitute legal or tax advice. For guidance specific to your business, please consult a qualified customs attorney or trade advisor.