U.S.–China Tariff Truce Extended to January 10, 2027: 178 Section 301 Exclusions, Port Fee Pause and What Importers Should Do Before Year-End

One-sentence takeaway

On November 10, 2026, the Office of the U.S. Trade Representative (USTR) published two Federal Register notices that keep the U.S.–China trade truce in place for two more months: all 178 Section 301 product exclusions now run through 11:59 p.m. ET on January 9, 2027 (91 FR 72610), and the Section 301 port fees on China-linked ships and duties on Chinese ship-to-shore cranes stay suspended until January 10, 2027 (91 FR 72608). China, for its part, keeps its extra 24% tariff on U.S. goods suspended for two months while the 10% additional tariff stays. Importers, cross-border sellers and U.S. exporters to China should treat January 9–10, 2027 as a live deadline in their year-end inventory, pricing and 2027 budget planning.

News background

Product exclusions: Since 2018–2019, USTR has imposed additional Section 301 duties on four tranches of products of China. Most product exclusions expired in 2019 and 2020, but 178 remain: 164 reinstated and COVID-related exclusions (HTS heading 9903.88.69) and 14 exclusions for certain solar manufacturing equipment (heading 9903.88.70). Under the November 1, 2025 U.S.–China trade deal, USTR extended them through November 9, 2026 (90 FR 55232). The new notice, citing "ongoing discussions with China," extends all 178 again.

Ships and cranes: In a separate Section 301 case on China's maritime, logistics and shipbuilding sectors, USTR set fees on certain maritime transport services and duties on ship-to-shore (STS) cranes and other cargo handling equipment in 2025. Those actions were suspended from November 10, 2025 through November 9, 2026. USTR proposed a two-month extension on October 23, 2026, received about 60 unique comments, and finalized it effective November 9, 2026.

China's side: On November 9, 2026, the Customs Tariff Commission of China's State Council said it will continue suspending the 24% additional tariff on U.S.-origin goods for two months and keep the 10% additional tariff, effective 1:01 p.m. Beijing time on November 10. The commission also noted that the U.S. has said it intends to replace the IEEPA tariffs, which were ruled invalid, with Section 301 tariffs, and that China will adjust its countermeasures accordingly.

Old vs. new

178 Section 301 exclusions: Before, they covered entries through November 9, 2026. Now they cover goods entered for consumption on or after 12:01 a.m. ET November 10, 2026 and before 11:59 p.m. ET January 9, 2027 (a Saturday).

Scope of an exclusion: Unchanged. Each exclusion applies only to products that match the 10-digit HTSUS number and the product description in the HTSUS notes. A near match is not covered.

Maritime service fees: Before, the suspension ran through November 9, 2026. Now no party accrues liability for the fees through January 9, 2027; HTS headings 9903.91.12–9903.91.16 now read "January 10, 2027."

STS cranes and cargo handling equipment duties: Also suspended through January 9, 2027. Some commenters asked USTR to separate these duties from the ship fees, so importers of such equipment should plan for the possibility that they return on a different track.

China's tariff on U.S. goods: The 24% additional rate stays suspended for two more months; the 10% additional rate continues to apply.

What does not change: The underlying Section 301 duties on products of China that are not covered by an exclusion, regular duties, and other trade measures continue to apply. The extension is short-term relief, not a final resolution.

Self-check

If you import products of China under an exclusion (9903.88.69 or 9903.88.70): confirm your broker is still claiming it on entries filed since November 10, 2026, and check that the HTSUS number and description match exactly.

If you are a Chinese-owned U.S. company buying from a related factory: duties and the price you pay your parent drive both customs value and U.S. income tax inventory cost. Under IRC §1059A, related-party import cost for tax purposes generally cannot exceed customs value, so keep transfer pricing and entry data consistent.

If you sell on Amazon, Walmart, TikTok Shop or similar platforms: re-run landed cost for inventory arriving after January 9, 2027 under two scenarios, exclusion extended and exclusion expired, before you set Q1 2027 prices.

If you charter vessels, ship ocean freight, or buy cargo handling equipment: review contracts for fee and tariff pass-through clauses that could take effect on or after January 10, 2027.

If you are a U.S. company exporting to China: your Chinese customers still face the 10% additional tariff; confirm how contracts allocate that cost and what happens if the 24% rate returns.

Simplified example

Simplified illustration only. Rates and amounts are assumed for illustration and do not describe any actual product's classification or duty.

Company C is a U.S. LLC that imports a component from China covered by one of the 178 exclusions. Assume the product would otherwise carry a 25% Section 301 additional duty and that each shipment has a customs value of $200,000.

Entered by January 9, 2027 with the exclusion: no Section 301 additional duty on that product (regular duties still apply).

Entered on or after January 10, 2027 if the exclusion is not extended: about $50,000 of additional duty per shipment ($200,000 × 25%), paid at entry.

Tax treatment: Duties are generally part of inventory cost, not an immediate expense. If goods imported in December 2026 are still on the shelf on December 31, 2026, the duty sits in ending inventory and is recovered through cost of goods sold when the goods are sold, likely in 2027. A year-end physical count and accurate landed-cost layers matter more than ever.

Takeaway: the timing of entry, not the timing of the purchase order, decides whether an exclusion applies. Model both scenarios before committing to large December orders, and weigh storage, cash flow and demand rather than duty alone.

Action steps and timeline

Now to November 30, 2026: pull entry summaries (CBP Form 7501) since November 10, 2026 and confirm the exclusion headings were reported correctly. Ask your licensed customs broker about CBP's implementation guidance.

December 2026: finalize year-end inventory counts and landed-cost layers; separate duties, freight and broker fees in your books. Review related-party pricing so customs value and tax inventory cost line up for the 2026 return and Form 5472.

By January 9, 2027 (Saturday): last day of the current exclusion window and maritime suspension. Watch the Federal Register and USTR for any further extension or new action.

January 10, 2027 onward: if no further extension, Section 301 additional duties on formerly excluded products and the maritime fees could apply to new entries and vessel calls. Update Q1 2027 pricing, cash-flow forecasts and estimated tax payments.

Through 2027: expect further U.S.–China announcements; build a quarterly tariff review into your financial close.

How YCL can help

Landed-cost and inventory accounting: duty, freight and broker-fee capitalization, year-end inventory counts and cost layers that match entry data.

Related-party pricing and §1059A checks: align transfer prices, customs values and tax inventory cost for Chinese-owned U.S. subsidiaries, with documentation for Form 5472 and pro forma Form 1120.

2027 tariff scenario budgeting: side-by-side cash-flow and margin models for "exclusion extended" vs. "exclusion expired," plus estimated tax planning.

Cross-border structure reviews: entity, contract and invoicing setups for importers, marketplace sellers and U.S. exporters to China, coordinated with your licensed customs broker and trade counsel.

YCL is a CPA firm, not a licensed customs broker. YCL Accounting & Consulting is a multi-state CPA firm serving clients nationwide in English and Chinese, led by co-founder Gloria (Chenchen) Liu, CPA.

FAQ

Q: Do I need to file anything new to keep using a Section 301 exclusion?

A: The USTR notice extends all 178 existing exclusions automatically for goods entered from November 10, 2026 through 11:59 p.m. ET January 9, 2027. Your broker still has to report the correct exclusion heading on each entry, and the product must match the exclusion's HTSUS number and description.

Q: Does the extension cut Section 301 duties on everything I import from China?

A: No. It only keeps the 178 listed exclusions alive and pauses the ship-related fees and crane duties. Other Section 301 duties on products of China, regular duties and other trade measures still apply.

Q: Can I deduct tariffs right away on my 2026 tax return?

A: Generally, duties are capitalized into inventory cost and recovered through cost of goods sold when the goods are sold. Duties on goods still in ending inventory on December 31, 2026 usually reduce taxable income only when those goods are sold. Your accounting method and facts matter, so review them with your CPA.

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YCL Accounting & Consulting (YCL Tax, Accounting & Advisory)

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Disclaimer

This article is general information. It is not customs, tax, legal, or investment advice for any company and does not promise any result. Facts come from USTR notices published in the Federal Register on November 10, 2026 (91 FR 72610 and 91 FR 72608) and the November 9, 2026 statement of China's State Council Customs Tariff Commission. Tariff measures can change on short notice; check the latest Federal Register and CBP guidance. YCL is not a licensed customs broker; consult your licensed customs broker and trade counsel before changing import arrangements. The example is a simplified illustration.