Sections 122, 232, 301: Understanding U.S. Tariff Categories

It’s essential to understand how tariffs work when shipping to the United States. Learn more about the different tariff categories such as Section 122 and 232 and how they may apply to your products.

When shipping to the United States, there are four main tariff categories you should be aware of. Any products that are not CUSMA (Canada-United States-Mexico Agreement)-approved may be subject to the following tariff fees: base tariffs, Section 122, Section 232, and Section 301.

Note: Products classified as informational materials (magazines, books, CDs, vinyls, etc) are currently exempt from tariffs and can be shipped to the U.S. duty-free. This does not apply to Section 301 tariffs (with certain exceptions such as children’s books, some posters and prints, etc).

To make each category easier to understand, we’ve broken them down in the sections below.

Base Tariffs

With the removal of de minimis entry, which previously allowed shipments valued under USD $800 to enter the United States duty-free, all shipments and products must now follow the requirements outlined in the official U.S. Harmonized Tariff Schedule website.

From telephones, to textbooks, to water bottles, every single product is assigned an HTS (Harmonized Tariff Schedule) code, which is used to classify goods being imported into the U.S. 

This ten-digit code: 

• Determines the product’s base duty rate
• Indicates whether it qualifies under any trade agreements
• Ensures accurate and compliant customs reporting.

Learn more about HTS codes here. 

In simple terms, the base tariff rate is determined by the HTS code assigned to a product, based on the guidance outlined in the official HTS schedule. If a product does not qualify for any special programs, the base tariff is typically calculated as a percentage of the product’s declared value. In some cases, however, it may instead be assessed based on the weight of the goods.

This is why it’s important to review the product’s HTS code on the official HTS website to clearly understand how the base tariff rate will be calculated.

Section 122 Tariffs

This tariff category has received significant attention recently. Section 122 is being used by the U.S. administration as a broad tariff measure following a U.S. Supreme Court ruling that determined the use of reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA) was unlawful. As of February 24, 2026, the administration has turned to Section 122 of the Trade Act of 1974 as the legal authority for imposing a new, across-the-board tariff.

Under Section 122, all imported products, regardless of country of origin, are subject to an additional 10% tariff, unless an exception applies.

Exceptions may apply in the following cases:

• The product is subject to Section 232 tariffs
• The product is classified as informational material (such as magazines, CDs, or vinyl records)
• The product is CUSMA-eligible and approved

Note: U.S. President Donald Trump has mentioned that this tariff rate may increase to 15%.

Section 232 Tariffs

Also known as the metal tariff, this category applies to products containing iron, aluminum, copper, or steel. Originating from Section 232 of the Trade Expansion Act of 1962, it applies to HTS codes classified as being made from these metallic materials.

At the moment, other metals such as titanium and platinum are not included in this category.

⚠️It’s important to note that CUSMA does not exempt products from Section 232 tariffs. Even if a product is CUSMA-approved, any applicable Section 232 fees must still be paid.

The Section 232 tariff can be calculated differently depending on the product and the guidance provided by U.S. authorities. Determined by the product’s HTS code, the tariff may be:

• Calculated based on the metal content of the item
• Assessed as a flat rate based on the total value of the product, regardless of its metal content; this is typically shown as Section 232 (Static) for tariff breakdowns. 

For a full list of affected HTS codes, visit our comprehensive list.

Section 301 Tariffs

Like Section 122, Section 301 originates from the Trade Act of 1974. However, its purpose is different: it is used to apply pressure on countries that the U.S. administration considers to be engaging in discriminatory or unfair trade practices.

Currently, Section 301 tariffs apply only to products made in China (Country of Origin being China), this does NOT include products from Hong Kong and Macau, due to ongoing trade tensions between the United States and China. 

Any product with a Chinese country of origin may be subject to these tariffs. However, the U.S. government has the authority to extend Section 301 tariffs to other countries if deemed necessary in the future.

To determine whether an HTS code is subject to Section 301 tariffs, look for the “/1” footnote next to the general duty rate on the official U.S. Harmonized Tariff Schedule website.

How Can Chit Chats Help?

Thinking about shipping to the U.S. with all these tariffs? Simplify the process with Chit Chats, your low-cost shipping solution. With just the HTS code and country of origin, we can accurately estimate the duties that apply to your shipments and products.

With us, you keep more of your profits with some of the lowest customs and broker processing fees compared to other carriers. Ship to the U.S. with Chit Chats today and start saving!