Further Modifying Reciprocal Tariff Rates To Reflect Ongoing Discussions With The People’S Republic Of China
Summary
This executive order extends the suspension of certain tariffs on goods from the People's Republic of China (PRC) until November 10, 2025. It modifies the Harmonized Tariff Schedule of the United States (HTSUS) to reflect ongoing trade discussions between the United States and the PRC. The original tariffs were imposed due to concerns about trade imbalances and their impact on national security and the economy.
Expected Effects
The continuation of suspended tariffs will likely maintain the current trade relationship between the US and China for an additional period. This could prevent immediate price increases on certain goods imported from China. The ongoing discussions suggest a potential for further adjustments to trade policy in the future.
Potential Benefits
- May prevent immediate price increases on consumer goods.
- Provides a continued period for negotiation and potential resolution of trade disputes.
- Could lead to more balanced trade relations in the long term.
- Supports stability in international trade markets.
- Allows businesses to plan with more certainty in the short term.
Most Benefited Areas:
Potential Disadvantages
- May prolong existing trade imbalances if not accompanied by substantial progress in negotiations.
- Could be perceived as a sign of weakness in trade negotiations by some.
- Potential for domestic industries to be negatively impacted by continued tariff suspensions.
- Uncertainty remains regarding long-term trade policy with China.
- May not fully address the underlying national security concerns related to trade deficits.
Constitutional Alignment
The executive order cites the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, section 604 of the Trade Act of 1974, and section 301 of title 3, United States Code, as its legal basis. These acts delegate authority to the President to take actions related to international trade and national emergencies. The Constitution grants Congress the power to regulate commerce with foreign nations (Article I, Section 8), but also recognizes the President's role in foreign affairs.
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).