Types of Tariffs – Section 201, Section 232, & Section 301

Understanding Key U.S. Tariffs: Section 201, Section 232, and Section 301

Updated: February 3, 2026

Tariffs remain a central component of U.S. trade policy and a significant cost and compliance consideration for companies engaged in international trade. While the statutory authorities behind major U.S. tariffs have not changed, their scope, enforcement, and practical impact continue to evolve. Understanding how these tariffs are applied, how they are enforced by U.S. Customs and Border Protection (CBP), and where duty drawback may or may not be available is essential for importers and exporters navigating today’s trade environment.

This article provides an overview of the primary U.S. tariff authorities, outlines recent enforcement trends, and highlights key considerations for businesses managing tariff exposure.

Section 201 Tariffs: Safeguard Measures for Domestic Industries

Overview

Section 201 tariffs were enacted under the Trade Act of 1974 and are designed to protect U.S. industries from serious injury caused by increased imports. These safeguard measures are typically applied on a temporary basis and may be adjusted over time through exclusions, extensions, or modifications.

Scope and Application

Section 201 tariffs have historically applied to specific product categories, such as solar cells, solar panels, and large residential washing machines. Product scope is determined by Harmonized Tariff Schedule classifications, and exclusions may be granted for certain products or manufacturers. Importers must closely monitor classification and exclusion criteria, as eligibility can change.

Duty Drawback Considerations

Duties paid under Section 201 are generally eligible for duty drawback when qualifying exports occur. This makes accurate import and export data, along with proper product identification, critical for companies seeking to recover these duties.

Section 232 Tariffs: National Security-Based Trade Restrictions

Overview

Section 232 tariffs are authorized under the Trade Expansion Act of 1962 and are imposed when imports are determined to threaten U.S. national security. These tariffs have most prominently affected steel and aluminum, with additional product categories added over time.

Scope and Enforcement Trends

The scope of Section 232 tariffs has expanded beyond raw materials to include downstream products. Enforcement has become increasingly rigorous, with CBP placing heightened emphasis on country of origin determinations, substantial transformation analysis, and documentation supporting exclusion claims. Importers should expect close scrutiny of supply chains involving steel and aluminum content.

Duty Drawback Considerations

Section 232 duties are not eligible for duty drawback, regardless of whether the merchandise is exported, destroyed, or incorporated into another product. This limitation makes upfront tariff planning particularly important for affected imports.

Section 301 Tariffs: Addressing Unfair Trade Practices

Overview

Section 301 tariffs, enacted under the Trade Act of 1974, are intended to address unfair foreign trade practices. These tariffs have been applied broadly, with a significant focus on goods originating from China.

Scope and Rate Variability

Section 301 tariffs cover a wide range of products and have been subject to rate increases, exclusions, and reinstatements over time. The complexity of these tariffs requires careful monitoring of tariff lists, classification accuracy, and country of origin determinations.

Duty Drawback Considerations

Unlike Section 232, Section 301 duties are generally eligible for duty drawback when goods are exported. However, CBP expects detailed data alignment between imports, exports, and drawback claims, and has increased oversight of claims involving Section 301 duties.

Universal and Reciprocal Tariffs

Overview

In addition to traditional tariff authorities, broader tariff measures have been introduced to address trade imbalances and promote domestic manufacturing. These measures may include baseline tariffs applied across a wide range of imports, as well as country specific reciprocal tariffs.

Implementation and Ongoing Adjustments

The application of universal and reciprocal tariffs has proven fluid, with pauses, adjustments, and country specific variations introduced through executive action and negotiations. As a result, tariff exposure under these programs may change with limited notice.

Duty Drawback Considerations

Eligibility for duty drawback on these tariffs varies based on the underlying legal authority and implementing guidance. Determining whether drawback applies often requires detailed analysis of tariff origin, statutory authority, and CBP interpretation.

Changes to De Minimis Treatment

Overview

The de minimis exemption allows certain low value shipments to enter the United States without duty. Historically, this provision has facilitated high volume, low value cross border trade.

Current Enforcement Direction

De minimis treatment has increasingly become a policy and enforcement focus, particularly for shipments originating from higher-risk trade lanes. Restrictions, eliminations, or additional data requirements may apply based on country of origin, product type, or shipment characteristics. Businesses relying on de minimis treatment should no longer assume broad or automatic eligibility.

Strategic Considerations for Importers and Exporters

As tariff programs expand in scope and enforcement becomes more data driven, businesses must evaluate tariffs not only at the transaction level but across their broader supply chains. Accurate classification, defensible origin determinations, and audit ready documentation are now essential components of effective tariff management.

Understanding which duties may be recoverable through drawback, which are not, and how evolving trade policies influence sourcing and export decisions can help companies better manage risk and control costs. For businesses that import goods subject to tariffs and later export finished products, components, or unused merchandise, completing the duty drawback inquiry form below is a practical next step in evaluating how drawback may fit into an overall trade compliance and cost recovery strategy.