After eight years of tariff turbulence, trade professionals have grown accustomed to the rhythm. But several key adjustments in the first half of 2026 deserve attention.

Section 301 Extensions and Exemptions

The USTR announced in May an 18-month extension of tariff exemptions for Chinese medical equipment and select new energy components. Solar modules, lithium battery components, and ventilator parts remain on the exemption list — a direct benefit for new energy exporters, potentially saving $20,000-$30,000 per container.

Steel and aluminum, however, continue under Section 232 tariffs at 25%. Metal product exporters still face the full weight.

China's Response

China has reduced additional tariffs on US soybeans and pork to below 5%, while maintaining higher rates on automobiles and aircraft parts. Interestingly, Chinese imports of US liquefied natural gas more than doubled last year — competitive pricing outweighed the tariff burden.

Practical Impact for Traders

First, HS code classification for exempt products must be exact — a single digit wrong can cost tens of thousands. Second, certificates of origin are under heightened scrutiny. Third, if your product qualifies for exemption, include the USTR notice reference in export documentation to reduce inspection rates.

FAQ

Will Section 301 tariffs be removed entirely?

Unlikely in the near term. The US strategy is selective exemption — protecting critical supply chains while maintaining overall pressure. Monitor USTR exemption announcements closely.

Is transshipment still viable?

Only if substantial transformation occurs in the third country. Simple repackaging or minor assembly does not qualify. US Customs scrutiny on Vietnam and Mexico transshipment has intensified significantly in 2026.