Imposing Duties To Address the Synthetic Opioid Supply Chain in the People's Republic of China
Executive Order 14195, issued by President Donald J. Trump and signed February 1, 2025, declares a continuation and expansion of the national emergency linked to the illicit synthetic opioid supply chain tied to the PRC (China). It uses the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), and related trade authorities to impose a new tariff regime on goods defined as “products of the PRC.” The central mechanism is a 10% ad valorem duty on these articles, effective February 4, 2025, with limited transitional relief for shipments already in transit or loaded before February 1, 2025 if importer certification is provided. The order directs the Secretary of Homeland Security to adjust the Harmonized Tariff Schedule (HTSUS) to implement the duty, and to coordinate with other federal agencies. It expands the existing national emergency to focus on PRC precursor suppliers, money laundering networks, and criminal organizations connected to illicit fentanyl and other synthetic opioids, while authorizing additional actions if cooperation from the PRC is not achieved. Tariffs can be increased if PRC retaliates, and tariffs will be removed if the Secretary of Homeland Security determines that PRC actions sufficiently alleviate the crisis. The order also requires reporting to Congress and preserves agency authorities and procedures to implement the policy within the bounds of the law.
Key Points
- 110% tariff on articles that are “products of the PRC.” The tariff becomes effective for entries on/after February 4, 2025, with a limited exception for shipments loaded before February 1, 2025 if the importer certifies compliance to Customs and Border Protection.
- 2The tariff is implemented by modifying the HTSUS (via DHS), and all other existing duties/fees apply in addition to the new tariff. No duty drawback or de minimis treatment applies to these articles.
- 3The order expands the national emergency to address PRC precursor suppliers, money launderers, and related criminal networks tied to illicit synthetic opioids, citing ongoing public health crises and national security concerns.
- 4The Secretary of Homeland Security (with other agency input) will regularly consult with the Secretary of State, the Attorney General, and senior White House security staff; if PRC actions are deemed sufficient to alleviate the crisis, tariffs can be removed.
- 5The order authorizes DHS and other agencies to take necessary steps to implement the policy (including rulemaking) and requires reporting to Congress on the national emergency and actions taken, while preserving the usual limits on agency authority and ensuring legislative appropriations.