If you import anything from China, Section 301 has shaped your cost structure more than almost any other government policy. The crazy part is that most founders do not actually know what it is or how to use it to protect margin.
Here is the simple breakdown.
What Section 301 Actually Is
Section 301 is the tariff program the U.S. created in response to China’s trade practices. It introduced four lists of tariffs on Chinese goods. Those lists determine the extra duty you pay on top of normal import taxes.
The rates are not small. Some lists add 7 percent. Others add 10 percent or 25 percent. For brands that import finished goods or parts, this can change your profitability overnight.
Why It Matters Right Now
Section 301 is not static.
It constantly evolves through:
New tariff rates
Expiring or extended exclusions
Revised HTS classifications
Shifts in enforcement or country of origin scrutiny
These changes create real winners and losers. If you ignore Section 301, you risk:
Overpaying on imports
Missing opportunities to lower duties
Misclassifying products
Losing refunds you should have claimed
Betting on pricing that collapses your forecast
Founders who understand Section 301 can protect margin, negotiate better terms, and uncover refunds that go straight to the bottom line.
What Shopify and Amazon Brands Need To Check
1. Know which list your products fall under
Every SKU you import has an HTS code. That code determines whether it sits on List 1, 2, 3, or 4.
Each list has a different tariff percent.
A lot of founders discover they are paying 25 percent because of one wrong code.
Action: Pull your HTS codes and confirm the list and rate for each one.
2. Check if your product has an exclusion
Some products receive temporary tariff exclusions. These can remove the added Section 301 duty entirely. The catch is that exclusions expire and must be claimed correctly.
Action: Look up whether your product code falls under an active exclusion. If it does, make sure your broker applied it.
3. Track your supplier’s country of origin inputs
Your product might be assembled in Vietnam or Mexico, but if certain components come from China, Section 301 can still apply.
Action: Ask your supplier for a bill of materials and confirm whether any key components originate from China.
Suppliers often push cost increases on you quietly when their upstream materials get hit with tariffs.
Action: Ask your factory to break down any recent price changes. Many are tariff driven.
5. Check for refund opportunities
If you imported items from China, then exported them, returned them, or destroyed them, part of your Section 301 payments may be recoverable.
Action: Run an audit of inventory write offs, Amazon removals, and international sales.
How Section 301 Impacts Your Business Day To Day
Cash flow: Higher duty costs tie up working capital.
Pricing: Tariff changes can force you to raise prices or eat the cost.
Inventory: Misclassified SKUs can destroy margins before you sell a single unit.
Forecasting: Your 2026 land cost model must include updated Section 301 rates.
Compliance: Incorrect entries can lead to audits or fines.
The Bottom Line
Section 301 is not something you can ignore. For Shopify and Amazon brands, it determines how much money you keep, how competitive you are, and whether your business scales with healthy margin or bleeds cash without realizing it.
Once you understand it, you gain control over one of the biggest cost drivers in your supply chain.
How Evana Can Help
If you want a team to handle this for you, Evana can help. We review your import history, verify your classifications, check your Section 301 exposure, and recover overpaid duties for you.
If you want us to analyze your last twelve months of shipments for missed savings or incorrect filings, you can book a free review at:
https://www.evana.app