Modifying Duties Addressing The Synthetic Opioid Supply Chain In The People’S Republic Of China
Summary
This document details a presidential action modifying duties addressing the synthetic opioid supply chain originating from the People's Republic of China (PRC). It amends Executive Order 14195, initially imposing a 10% duty, then raised to 20% in Executive Order 14228, on certain goods from the PRC due to the influx of synthetic opioids like fentanyl. This new order reduces the additional duty from 20% back to 10% effective November 10, 2025, in response to commitments made by the PRC to curb the flow of fentanyl.
Expected Effects
The immediate effect will be a reduction in tariffs on specific goods imported from China, potentially lowering costs for some businesses and consumers. This action signals a shift in trade relations with China, contingent on their adherence to commitments regarding fentanyl production and export controls. Continued monitoring and potential for future modifications are built into the order, allowing for adjustments based on China's compliance.
Potential Benefits
- Potential reduction in costs for businesses importing goods from China subject to the tariffs.
- Could lead to improved trade relations with China, fostering cooperation on other issues.
- May incentivize China to take stronger action against fentanyl production and trafficking.
- Demonstrates a flexible approach to trade policy, adapting to changing circumstances.
- Could lead to a decrease in the availability of synthetic opioids in the United States.
Potential Disadvantages
- Reduced tariffs may weaken the economic pressure on China to fully implement its commitments.
- Potential for China to not fully comply with its commitments, leading to a resurgence in fentanyl flows.
- Domestic industries that compete with Chinese imports may face increased competition.
- The effectiveness of the monitoring and enforcement mechanisms is uncertain.
- The reduction in tariffs could be perceived as a weakening of the U.S. stance on combating the opioid crisis.
Constitutional Alignment
The action is based on the President's authority under the Constitution and laws, including the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974. Specifically, the document cites the power vested in the President by the Constitution, and references specific sections of the IEEPA (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974 (19 U.S.C. 2483), and section 301 of title 3, United States Code. These acts delegate authority to the President to take actions related to international trade and national emergencies. The action appears to fall within the scope of powers delegated to the executive branch by Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).