Modifying Reciprocal Tariff Rates Consistent With The Economic And Trade Arrangement Between The United States And The People’S Republic Of China
Summary
This document details a Presidential action modifying reciprocal tariff rates between the United States and the People's Republic of China (PRC). It implements an agreement reached on October 30, 2025, which addresses trade imbalances and national security concerns. The agreement involves the PRC making commitments regarding export controls, purchases of US agricultural exports, and suspension of retaliatory actions, while the US maintains the suspension of heightened reciprocal tariffs on imports from the PRC until November 10, 2026.
Expected Effects
The action will continue the suspension of heightened tariffs on Chinese imports until November 10, 2026, as part of an agreement with the PRC. This aims to reduce the US trade deficit and address economic and national security concerns. The agreement is intended to ensure access to vital materials, strengthen agricultural infrastructure, and bolster the US manufacturing and defense industrial base.
Potential Benefits
- Ensures access to materials vital to national defense and the energy sector.
- Strengthens the agricultural infrastructure of the United States through increased exports.
- Bolsters the manufacturing and defense industrial base of the United States.
- Reduces the United States' trade deficit with the PRC.
- Addresses non-reciprocal trade arrangements.
Potential Disadvantages
- Potential for the PRC to not fully implement its commitments under the agreement.
- Continued reliance on trade with the PRC, which some may view as a national security risk.
- Possible negative impacts on domestic industries that compete with Chinese imports if the agreement is not effectively enforced.
- Risk of future trade disputes if the agreement's terms are not mutually beneficial in the long term.
- The agreement's benefits are contingent on the PRC's compliance, creating uncertainty.
Constitutional Alignment
The action is based on the President's authority under the Constitution and laws of the United States, including the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974. The President is using powers delegated by Congress to address what is deemed a national emergency related to trade deficits. The Constitution grants Congress the power to regulate commerce with foreign nations (Article I, Section 8), and Congress has, in turn, delegated some of this authority to the President through acts like IEEPA.
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).