Legis
Trade
Executive order · Monday 12 May 2025

Modifying Reciprocal Tariff Rates To Reflect Discussions With The People’s Republic Of China

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  • Authority: The President has the authority to issue this executive order under various U.S. laws, including the International Emergency Economic Powers Act and the National Emergencies Act.

  • National Emergency Declaration:

    • Declared in Executive Order 14257 due to large and persistent U.S. goods trade deficits, posing a threat to national security and the economy.
    • Imposed additional duties on imports to counter this threat.

  • Retaliatory Measures:

    • Executive Order 14257 allows modifications to duties if trading partners retaliate through import duties or other measures.
    • In response to China’s announced retaliation, subsequent orders (14259 and 14266) raised applicable duty rates on imports from China.

  • Reciprocal Trade Discussions:

    • Discussions with China are ongoing to address trade reciprocity and security concerns, seen as a step toward remedying non-reciprocal trade arrangements.

  • Modification of Tariff Schedule:

    • Additional duties on imports from China will be suspended for 90 days starting May 14, 2025, with a new duty rate of 10% prescribed.
    • Specific changes to the Harmonized Tariff Schedule (HTSUS) include modifications to duty rates and descriptions of affected articles.

  • Additional Duty Changes:

    • Reduction of duty rates from 120% to 54% for certain items related to synthetic opioids from China.
    • Retention of a postal item duty rate of $100 until modified by subsequent action.

  • Implementation Team:

    • Various government officials, including the Secretaries of Commerce and Homeland Security, are directed to implement this order and necessary regulatory changes.

  • Legal and Administrative Provisions:

    • The order does not impair existing agency authorities or the functions of the Office of Management and Budget.
    • It does not create enforceable rights against the U.S. or its entities.

  • Publication Costs:

    • Costs associated with the publication of the order will be covered by the Department of Commerce.