Section 301 Tariffs on China Textiles: What Fabric Importers Pay in 2026

For fabric buyers importing from China into the United States, Section 301 tariffs have fundamentally changed the landed cost equation. What started as a 7.5% additional duty on most textile products in 2019 escalated to 145% by May 2025, before a partial rollback brought rates down for some categories. Understanding the current rate structure is essential for anyone sourcing tweed, boucle, or knit fabric from Chinese mills and shipping to the US market.

This guide covers the current tariff rates for textile products, how to calculate the total landed cost including all duties, which product categories are most affected, and what options importers have to manage the cost impact.

Current Section 301 Rates for Textiles (2026)

As of early 2026, the tariff structure for Chinese textiles imported into the US includes multiple layers of duty:

Normal (MFN) duty. This is the standard WTO tariff rate that applies to all imports regardless of trade actions. For woven wool fabrics (HTS Chapter 51), the MFN rate is typically 4-12% ad valorem. For synthetic fabrics (Chapter 54-55), rates range from 7-16%. For knit fabrics (Chapter 60), rates are 10-17%.

Section 301 additional duty. Most textile products from China fall under List 4A of the Section 301 actions. After the May 2025 escalation and subsequent partial rollback, the current Section 301 rate for most fabric categories is 20-25% as of early 2026, down from the 145% peak. However, some specific product categories remain at higher rates.

Combined effective rate. The total additional duty on Chinese fabric imports is the MFN rate plus the Section 301 rate. For a woven wool tweed (MFN 10% + Section 301 20%), the combined rate is 30%. For a synthetic knit fabric (MFN 14% + Section 301 25%), the combined rate is 39%.

For the most current official rates, the USTR Section 301 investigations page provides the definitive list of covered products and applicable rates. The Federal Register notice documenting the latest modification provides the legal text.

How to Calculate Landed Cost

The landed cost of imported fabric includes all costs from the mill door to the buyer’s warehouse. Here is a worked example for a shipment of woven wool tweed from Wenzhou to a warehouse in New York:

Fabric cost (FOB Shanghai): $8.50 per meter, 3,000 meters = $25,500

Ocean freight (LCL, Shanghai to New York): $1.20 per meter = $3,600

Marine insurance: 0.3% of CIF value = $87

Customs value (CIF): $25,500 + $3,600 + $87 = $29,187

MFN duty (10%): $2,919

Section 301 duty (20%): $5,837

Customs brokerage and fees: $350

Harbor maintenance fee (HMF, 0.125%): $36

Total landed cost: $29,187 + $2,919 + $5,837 + $350 + $36 = $38,329

Landed cost per meter: $38,329 / 3,000 = $12.78

The Section 301 duty alone adds $1.95 per meter (23% of the FOB price). This is a significant cost that must be factored into the product margin from the start, not discovered after the shipment arrives.

Which Fabric Categories Are Most Affected

Not all fabric categories face the same tariff burden. The impact varies by HTS classification:

Woven wool fabrics (HTS 5112): MFN 10-12% + Section 301 20% = 30-32% total. Wool tweed and boucle fall here. The high MFN rate means the combined burden is significant even before Section 301.

Woven cotton fabrics (HTS 5208-5212): MFN 8-12% + Section 301 20% = 28-32% total. Cotton twill, poplin, and canvas.

Synthetic woven fabrics (HTS 5407-5408): MFN 7-16% + Section 301 25% = 32-41% total. Polyester and nylon fabrics face the highest combined rates because both the MFN and Section 301 components are high.

Knit fabrics (HTS 6001-6005): MFN 10-17% + Section 301 20-25% = 30-42% total. Knit fabrics have a wide range because the MFN rate varies significantly by construction (warp knits vs weft knits, pile fabrics vs plain knits).

For buyers importing into other markets, the situation is different. The EU applies no additional tariffs on Chinese textiles beyond the standard third-country duty (typically 8-12%). The UK applies similar rates post-Brexit. For a detailed comparison of import costs across markets, see our fabric incoterms guide.

Managing the Cost Impact

Importers have several strategies to manage the Section 301 cost burden:

Source from non-China mills. Turkey, Portugal, and India are the most common alternatives for woven fabrics. However, the per-meter cost at the mill is typically 30-80% higher than Chinese equivalents, which can offset the tariff savings. Our analysis of tweed price per yard vs meter includes cost comparisons across sourcing origins.

Use a foreign trade zone (FTZ). If the fabric is imported into an FTZ and then exported as finished garments, the Section 301 duty can be avoided entirely. This works for brands that manufacture outside the US but source fabric through US-based entities.

Optimize the HTS classification. Some fabric constructions can be classified under multiple HTS codes with different duty rates. A customs broker with textile expertise can identify the lowest-duty classification that is legally defensible. The savings are typically 2-5% of the customs value, which adds up over large volumes.

Consolidate shipments. Each shipment incurs fixed customs brokerage and port fees. Consolidating multiple small orders into a single larger shipment reduces the per-meter fixed cost component. For more on shipment optimization, see our guide to FOB, EXW, and DDP terms.

What to Watch in 2026

The Section 301 tariff environment remains fluid. Key developments to monitor:

Rate changes. The US-China trade relationship continues to evolve. Tariff rates can change with little notice, as demonstrated by the rapid escalation to 145% and subsequent partial rollback in 2025. Buyers should build tariff flexibility into their cost models rather than assuming current rates will hold.

Exclusion processes. Some textile products have received Section 301 exclusions based on demonstrating that the product is not available from non-Chinese sources. The exclusion process takes 60-90 days and requires detailed documentation. For specialty fabrics like metallic tweed or high-GSM boucle that are produced by only a handful of mills worldwide, exclusions may be worth pursuing.

De minimis threshold. Shipments valued under $800 enter the US duty-free under the de minimis threshold (Section 321). This applies to sample shipments and small orders but not to bulk production. Some brands use this for sampling while planning bulk imports through other channels.

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Does Section 301 apply to fabric samples?
Samples shipped in small quantities (typically under 50 meters) and marked as “sample – not for resale” may qualify for duty-free entry under the samples exemption. However, the exemption is not automatic and requires proper customs documentation.

Are recycled fabrics exempt from Section 301?
No. The tariff applies based on the HTS classification of the product, not its sustainability credentials. Recycled polyester fabric from China faces the same Section 301 rate as virgin polyester fabric. For more on recycled fabric certifications, see our RCS vs GRS certification guide.

Who pays the Section 301 duty?
The importer of record (the US entity that files the customs entry) pays the duty. Under FOB terms, the buyer is the importer. Under DDP terms, the seller (or their agent) is the importer and bears the duty cost. This is why DDP pricing from Chinese mills is significantly higher than FOB pricing.

Can I get a refund if the tariff rate decreases after I import?
No. Duties are assessed at the rate in effect on the date of entry. If the rate decreases after your shipment clears customs, you cannot claim a refund for the higher rate you paid. This is one reason to monitor tariff developments closely before timing large shipments.