There is no such thing as "the China tariff is 25%." A shipment from China to the US clears customs under a stack of separate measures that each attach for a different reason, and the total for most manufactured goods lands around 37.5%. Products on the wrong lists, like children's bicycles with steel frames, can reach 71%.
Here is what each layer is, then one real shipment worked line by line.
The four layers
Layer 1: the MFN base rate. The normal Harmonized Tariff Schedule rate attached to each HTS code. Electronics are mostly 0%, apparel runs around 16.5%, children's bicycles 11%. Every import pays this; nothing exempts it.
Layer 2: the Section 301 lists. The China-specific duties left over from the 2018 trade war, assigned by product list. List 4A consumer goods pay 7.5%, Lists 1–3 (electronics, machinery, chemicals, auto parts) pay 25%, strategic sectors like semiconductors and solar cells pay 50%, and electric vehicles pay 100%. Which list your product is on is decided entirely by its HTS code.
Layer 3: Section 232 on metals. 50% on articles made wholly of steel, aluminum or copper, and 25% on derivative products, assessed only on the metal content's value. This layer is origin-blind; a Chinese machine with a steel housing pays 232 on the housing portion while the rest of the value carries the normal stack.
Layer 4: the reciprocal base. The across-the-board layer for China-origin goods. The 2025 IEEPA version was struck down by the Supreme Court in February 2026; since July 24, 2026 the layer is a Section 301 forced-labor tariff, with China in the 12.5% tier.
Beyond the four: AD/CVD (anti-dumping and countervailing duties) applies only when a trade-remedy order covers your product, and when it does the rate is typically 100–400%. It is an exception, not a routine line.
One real shipment: $10,000 of consumer electronics
Take a $10,000 shipment of consumer electronics (HTS 8543, electrical machines), worked line by line:
| Layer | Rate | Duty |
|---|---|---|
| MFN | 0% | $0 |
| Reciprocal (forced-labor tier) | 12.5% | $1,250 |
| Section 301 (List 3) | 25% | $2,500 |
| Section 232 | 0% (no steel/aluminum) | $0 |
| Duty total | 37.5% | $3,750 |
| Merchandise Processing Fee | 0.3464% | $34.64 |
| Harbor Maintenance Fee (ocean) | 0.125% | $12.50 |
The government bill comes to roughly $3,797 before your customs broker's fee. Swap the product and the total changes completely: a cotton T-shirt stacks to about 36.5% (16.5% MFN + 7.5% List 4A + 12.5% reciprocal), while a children's bicycle with a steel frame catches the 232 derivative list and can reach 71%.
The three mistakes that cost real money
Treating the layers as alternatives. The common error is "the 301 rate on this product is 25%, so I pay 25%." Each layer adds to the same customs value; a 25% Section 301 line on top of the 12.5% reciprocal is 37.5%, not 25%.
Applying 232 to the whole shipment. Section 232 is assessed on the metal content only, not the full value. For a part-metal product, the metal portion pays the derivative rate while the rest carries the base stack. Both directions of the error exist: applying 232 to everything overpays, ignoring it underpays.
Assuming Hong Kong avoids it. Under Executive Order 13936, goods shipped from Hong Kong are treated as Chinese origin. Duty follows the true country of origin, not the port it left from.
The 2025 IEEPA refund
Because the Supreme Court struck the IEEPA tariffs down, the reciprocal layer paid on China shipments between April 2025 and February 2026 was overpaid and is refundable through CBP's CAPE reliquidation process, a pool of roughly $166 billion. If you imported from China in that window, pull your Form 7501 entry summaries for 2025, find the reciprocal line, and confirm eligibility before the window closes. Sections 301 and 232 were not struck down and are not refundable.
The arithmetic itself is not hard. What is hard is knowing which list your HTS code sits on and which version of each layer is in force today, because both have changed repeatedly. Check the current Federal Register notices before a shipment, not last year's memo.
Sources: Dutiable and TariffsTool 2026 duty-calculation guides, retrieved 2026-09-23; USITC HTS database, USTR notices, Federal Register. Rates as of July 2026; verify before shipping.