Modifying Reciprocal Tariff Rates Consistent With the Economic and Trade Arrangement Between the United States and the People's Republic of China
This executive order extends the suspension of the heightened reciprocal tariffs on imports from the People’s Republic of China (PRC) through November 10, 2026, and ties the continuation to the bilateral Kuala Lumpur Joint Arrangement (the Arrangement) reached between the United States and the PRC. Building on prior orders that declared a national emergency over large and persistent U.S. goods trade deficits, the order aims to implement the Arrangement, maintain access to materials critical for national defense and the economy, and address U.S. concerns about non-reciprocity in trade. It directs Treasury, Commerce, Homeland Security, and the U.S. Trade Representative (USTR) to monitor progress, and to modify or take further action if the PRC fails to live up to its commitments. In short, it keeps the lid on additional PRC tariffs for a defined period while continuing oversight and potential policy adjustments based on ongoing assessments.
Key Points
- 1The heightened reciprocal tariffs on imports from the PRC are continued in suspension until 12:01 a.m. Eastern Standard Time on November 10, 2026.
- 2The order implements the Arrangement with the PRC (the Kuala Lumpur Joint Arrangement), under which the PRC commits to actions such as reducing or suspending retaliation, purchasing U.S. agricultural exports (e.g., soybeans, sorghum, logs), and addressing export-control restrictions on critical minerals; the U.S. commits to maintaining the tariff suspension and addressing national security and economic concerns.
- 3The Secretary of the Treasury, Secretary of Commerce, and USTR, with input from the Secretary of State and others, must monitor the underlying conditions (trade deficit, reciprocity, tariffs, non-tariff barriers, manufacturing/defense bases, etc.) and report progress, including the PRC’s implementation of its commitments.
- 4If the PRC fails to implement its commitments, the President may modify the order as needed to address the emergency declared in Executive Order 14257.
- 5The order authorizes and directs federal agencies to take the necessary steps (rules, guidance, other actions) to implement and effectuate the order, with the ability to redelegate those functions as appropriate.