by Daniel Brouse
June 11, 2025
The math of sequential tariffs is both interesting and economically significant. The complexity adds to business uncertainty. For instance, to calculate the total duties on Chinese steel imports — subject to a combined 132.5% tariff rate — you can break it down like this:
Starting Point: A $100 shipment of Chinese steel
Step 1: Apply Section 301 Tariff (55%)
55% of $100 = $55
New subtotal: $100 + $55 = $155
Step 2: Apply Section 232 Steel Tariff (50%)
50% of $155 = $77.50
New subtotal: $155 + $77.50 = $232.50
Final Import Cost: $232.50
Summary:
Description Amount
Original Invoice Value $100.00
Total Tariffs Paid $132.50
Effective Tariff Rate 132.5%
Would the sequential tariffs on steel and aluminum apply to washers and dryers made in China?
Washers and dryers made in China do face stacked tariffs, but not all of the same ones that apply to steel and aluminum. Instead, they’re subject to a specific tariff framework that includes:
1. Section 201 Safeguard Tariff
Specifically targets large residential washers (like top-load/front-load machines).
Originally 20% tariff in 2018, phased down over time — but was reimposed and increased in 2025 under Trump’s new trade policy.
Current estimate: 20%–30% depending on category.
2. Section 301 Tariff (China-specific)
As of June 2025: 55% total (25% original + 20% fentanyl-related + 10% universal tariff).
Applies to most appliances and electronics imported from China.
3. Section 232 (Steel & Aluminum) Tariff
Only applies to raw materials or unfinished parts, not finished consumer goods like assembled washers/dryers.
However, if imported as parts or unfinished assemblies, Section 232 may apply.
4. Universal 10% Tariff
Included in the 55% Section 301 total, not double-counted.
Applies to all imports, including appliances.
Example Calculation: Chinese Washer ($100 FOB value)
Let’s assume:
It qualifies as a large residential washer
No exclusions or exemptions apply
Step 1: Apply Section 201 Tariff (25%)
25% of $100 = $25
Subtotal = $125
Step 2: Apply Section 301 Tariff (55%)
55% of $125 = $68.75
Subtotal = $193.75
Final Import Cost = $193.75
Result Summary
Description Amount
Original Value $100.00
Section 201 Tariff $25.00
Section 301 Tariff $68.75
Total Tariffs Paid $93.75
Effective Tariff Rate 93.75%
Additional Notes
Dryers (not washers) may not fall under Section 201 but still face the full 55% Section 301 tariff.
Steel/aluminum content inside these appliances does not trigger Section 232 if the item is fully assembled.
The HS classification code used by U.S. Customs determines which tariff layers apply.
What would the sequential tariff be on a BYD electric vehicle?
Section 301 (China-specific, EV-focused)
Initially 27.5% (Trump era) and raised to 100% under Biden on May 14, 2024
Section 232 (Auto Tariff)
A 25% steel/aluminum tariff also applies to vehicles and parts imported from China, enacted April 3, 2025 under Section 232
Universal 10% Tariff
Part of the broader Section 301 package or standalone under “reciprocal” policy. Likely factored, but could stack separately
Sequential Tariff Calculation – Hypothetical $30,000 BYD EV
Step 1: Section 301 – 100%
$30,000 × 100% = +$30,000 → Subtotal: $60,000
Step 2: Section 232 – 25% on New Subtotal
$60,000 × 25% = +$15,000 → Subtotal: $75,000
Step 3: Universal 10% Tariff
$75,000 × 10% = +$7,500 → Final Cost: $82,500
Final Tallies
Tariff Component Rate Amount
Original Vehicle Price – $30,000
Section 301 Duty 100% $30,000
Section 232 Duty 25% $15,000
Universal Tariff (est.) 10% $7,500
Total Duties Paid – $52,500
Effective Tariff Rate – 175%
Conclusion
The examples above demonstrate how sequential tariffs can significantly inflate the final cost of imported goods—sometimes more than doubling or tripling the original price. While these tariffs are often justified as tools for protecting national industries or pressuring foreign governments, their economic consequences are far-reaching. Tariffs act as a regressive tax, disproportionately impacting lower-income consumers who spend a higher share of their income on goods affected by price hikes. They also introduce business uncertainty, discourage investment, and strain global supply chains. Perhaps most damaging in the long term, the increasing use of unilateral and stacked tariffs undermines the United States’ credibility as a reliable trading partner, encouraging allies and rivals alike to pursue trade relationships elsewhere. As trade policy becomes more complex and politically charged, understanding the math—and the unintended consequences—of sequential tariffs is more important than ever.