Modifying Reciprocal Tariff Rates To Reflect Trading Partner Retaliation and Alignment
This executive order enlarges and accelerates reciprocal tariffs in response to trading-partner retaliation and alignment efforts. Building on Executive Order 14257 and related orders, it allows the President to raise or suspend specific tariff rates under the Harmonized Tariff Schedule (HTSUS) and to temporarily increase duties on goods from certain trading partners, notably the PRC, in reaction to retaliation and in pursuit of greater reciprocity. It also temporarily tightens duties on low-value shipments (de minimis rules) and directs federal agencies to implement the changes through regulatory action. The overall aim is to pressure trading partners to align their policies with U.S. economic and national security interests while providing a mechanism to scale tariffs up or down as partner behavior changes. Key effects include a 10% additional duty for articles from listed trading partners for a 90-day window (April 10–July 9, 2025), a substantial tariff reclassification that could raise duties on many goods (including a move to 125% for certain categories and broad redefinitions of products), and higher charges for small, low-value shipments. Agencies are empowered to adjust regulations and notices to implement these changes.
Key Points
- 1Legal authority and purpose: Based on IEEPA, the National Emergencies Act, the Trade Act of 1974, and section 301 of title 3, U.S. Code; builds on EO 14257 and EO 14256 to address non-reciprocal trade practices and retaliatory actions while seeking alignment with U.S. economic and security priorities.
- 2Sec. 2 – Suspension and new country-specific duty: For shipments entering on or after April 10, 2025, the second paragraph of section 3(a) of EO 14257 is suspended through July 9, 2025. Trading-partner articles listed in Annex I will, during that period, be subject to an additional 10% ad valorem duty, with all common exceptions from EO 14257 applied.
- 3Sec. 3 – Tariff modifications: HTSUS is amended to reflect higher duties and reclassification.
- 4- (a) Reclassifies articles under heading 9903.01.25 to cover products of any country (with specific exceptions, including China/Hong Kong/Macau) entering after April 10, 2025.
- 5- (b) Raises heading 9903.01.63 duty from 84% to 125% (and updates the effective date to April 10, 2025).
- 6- (c) Updates related U.S. notes to replace 84% with 125% and adjust dates accordingly.
- 7- (d) Suspends certain HTSUS headings and specific notes for a 90-day period to implement these modifications.
- 8Sec. 4 – De minimis tariff increase:
- 9- (a) Increases the ad valorem rate in EO 14256 (addressing the synthetic opioid supply chain) from 90% to 120%.
- 10- (b) Increases the per-postal-item duty from $75 to $100 for the period May 2, 2025, to June 1, 2025.
- 11- (c) Increases the per-postal-item duty from $100 to $200 after June 1, 2025.
- 12Sec. 5 – Implementation: The Commerce Department, Homeland Security, and USTR, with other federal partners, must implement and enforce the order, including possible temporary regulatory changes and other measures under IEEPA, as allowed by law.
- 13Sec. 6 – General provisions: Maintains current agency authorities and budget processes; clarifies that the order does not create enforceable rights in law and is subject to applicable law and appropriations.