In October 2026, US tariffs on most Chinese goods combine existing Section 301 duties (7.5% or 25%) with a new 12.5% Section 301 duty in force since 24 July 2026, and US de minimis treatment remains suspended. The EU, by contrast, applies no general China surcharge but uses targeted measures on specific products. For a European importer, "China plus one" is therefore a question of product, market and risk, not a blanket reason to leave China.
Key takeaways
- The US Supreme Court struck down the IEEPA tariffs (including the 2025 "reciprocal" and fentanyl duties) on 20 February 2026.
- A temporary Section 122 surcharge replaced them until 24 July 2026, when a 12.5% Section 301 duty on Chinese goods took effect, stacking on older Section 301 duties of 7.5% or 25%.
- US de minimis remains suspended, upheld by the Court of International Trade in August 2026, and is repealed by law from 1 July 2027.
- In the EU, Chinese goods mostly pay standard duty rates, but targeted measures apply to EVs and steel, and since 1 July 2026 low-value parcels pay a flat €3 per item category.
- Diversification makes most sense for US-bound goods, products under EU anti-dumping duties, and businesses dependent on a single supplier.
What are US tariffs on Chinese goods right now?
The US tariff stack on China changed several times in 2026. As of mid-October, the main layers are:
| Layer | Rate | Notes |
|---|
| MFN (normal) duty | Varies by HS code | Applies to all countries |
| Section 301, Lists 1-3 | 25% | Machinery, electronics, furniture, many components |
| Section 301, List 4A | 7.5% | Many consumer goods, apparel, footwear |
| Section 301, sector increases (2024-2026) | 25%-100% | EVs, batteries, semiconductors, solar, medical items and others |
| Section 301 duty from 24 July 2026 | 12.5% | Most Chinese goods; Section 232 goods excluded |
| Section 232 | 10%-50% and more | Steel, aluminium, copper, autos, wood products and others |
In practice, a typical List 4A consumer product now pays around 20% on top of its MFN rate, and a List 1-3 product around 37.5%. Some products sit on an exclusion list for the 12.5% layer only.
What happened to the IEEPA tariffs?
The 2025 tariffs imposed under the International Emergency Economic Powers Act, which at their peak in April 2025 reached 145% on Chinese goods, were ruled unlawful by the Supreme Court on 20 February 2026. A temporary 10% Section 122 surcharge filled the gap until it expired on 24 July 2026 and was replaced by the new Section 301 duties.
Is a US-China deal changing this?
After a summit in Washington in late September 2026, both governments announced reciprocal tariff cuts on a basket of "non-sensitive" goods, reportedly including toys and holiday decorations on the US side. At the time of writing, final rates, product lists and effective dates had not been published, and a broader agreement was pushed into 2027. Check the latest USTR notices before pricing US orders.
What is the status of US de minimis?
The US suspended duty-free de minimis treatment (for shipments under $800) in 2025, first for China and then for all countries. The Court of International Trade upheld the suspension in August 2026, and the One Big Beautiful Bill Act repeals de minimis permanently from 1 July 2027. For EU sellers shipping parcels from China to US customers, every parcel is now dutiable, which makes US dropshipping from China far less attractive.
What trade measures does the EU apply to China in 2026?
The EU does not impose a general tariff surcharge on China. Instead:
- Standard duties under the Common Customs Tariff apply, as for other WTO members without a trade agreement.
- Anti-dumping and countervailing duties apply to specific products, including battery electric vehicles (countervailing duties from 2024, with the Commission issuing guidance on minimum-price undertakings in January 2026), e-bikes, certain steel and aluminium products, ceramics and various chemicals. Check the TARIC database for your HS code.
- New steel measure: from 1 July 2026, a permanent regime replaced the steel safeguard, cutting duty-free quotas by about 47% and applying a 50% out-of-quota duty, plus a melt-and-pour origin requirement.
- CBAM: the definitive phase began on 1 January 2026 for imports of steel, aluminium, cement, fertilisers, hydrogen and electricity, including some downstream products.
- Low-value parcels: since 1 July 2026, a flat €3 duty per item category applies to parcels of €150 or less, and a per-item handling fee is planned from 1 November 2026. See dropshipping vs bulk import.
For a full view of EU charges, read EU customs clearance for China imports and import duties and VAT from China to France.
What does China plus one look like in practice?
| Country | Strengths | Limitations | EU trade context |
|---|
| Vietnam | Furniture, textiles, footwear, electronics assembly | Smaller supplier base, higher MOQs, inputs often from China | EU-Vietnam FTA in force since 2020 |
| India | Textiles, home textiles, leather, metalwork, pharma | Longer lead times, variable quality systems | EU-India FTA concluded; signature expected by end-2026 |
| Thailand and Malaysia | Electronics, rubber, auto parts | Higher costs | Standard rates; EU negotiations ongoing |
| Turkey | Textiles, home goods, fast delivery to EU | Higher prices, currency volatility | EU-Turkey customs union for industrial goods |
| Mexico | Proximity to the US | Higher costs, new tariffs on Chinese inputs | Mainly relevant for US sales |
| China | Unmatched supplier depth, speed, cost for many goods | US tariffs, targeted EU measures | Standard EU rates for most goods |
Note that US duties on Vietnam and India also changed in 2026, and the US applies origin rules that penalise simple transshipment. Moving final assembly while keeping Chinese components does not automatically change customs origin.
When should a European SME diversify?
- Map your exposure: list products by destination market (EU, US, UK) and by HS code.
- Check measures per product in TARIC (EU) and the US Harmonized Tariff Schedule.
- Flag high-risk products: those under EU anti-dumping duties, US-bound goods in List 1-3, and items with a single supplier.
- Compare landed cost, not unit price; use our landed cost guide.
- Pilot one alternative supplier for one product, with samples and an inspection.
- Keep China for what it does best, especially for EU-bound goods without special measures.
For most European SMEs selling in Europe, the honest answer is that China remains the most competitive source for a wide range of products. Diversification is insurance, not an exit.
Practical tips to manage tariff risk today
Whatever your sourcing mix, a few habits reduce exposure to sudden changes:
- Classify products carefully and keep HS code justifications on file; see HS codes explained.
- Quote customers with a validity period and a clause allowing price revision if duties change.
- Prefer Incoterms that keep you in control of freight and customs, such as FOB, rather than DDP offers that hide duty assumptions.
How Cina helps
Cina focuses on sourcing from China efficiently. Its supplier directory of more than 41,000 suppliers lets you add a second Chinese supplier in another province, which is often the simplest form of diversification. The logistics and Incoterms guide explains how duties and origin affect landed cost, and the freight forwarders directory helps you find partners for EU and US routes. See the Cina resources page.
Conclusion
Tariffs on Chinese goods in 2026 are mainly a US story, with targeted EU measures on specific sectors and new charges on low-value parcels. European importers should check measures product by product, diversify where real risk exists, and keep China where it remains the best option. Because rules changed several times this year, verify current rates with a customs broker before each major order.
