[VT- Washington, D.C.] May 12, 2025 – President Donald J. Trump has signed a new executive order temporarily modifying tariff rates on imports from the People’s Republic of China (PRC), including goods from Hong Kong and Macau. The decision reflects recent progress in U.S.-China discussions aimed at addressing long-standing trade imbalances and national security concerns.
The executive order suspends 24 percentage points of the additional ad valorem duties previously imposed under Executive Order 14257, reducing the total tariff rate to 10 percent for a period of 90 days, effective 12:01 a.m. EDT, May 14, 2025. The suspension applies to all applicable imports from the PRC, in accordance with existing legal exemptions.
Background and Preceding Orders
This latest directive builds upon a series of actions beginning with Executive Order 14257, issued on April 2, 2025, in which President Trump declared a national emergency over persistent U.S. trade deficits and imposed reciprocal tariffs. Further adjustments followed in Executive Orders 14259 (April 8, 2025) and 14266 (April 9, 2025) in response to retaliatory measures by China.
The April 11, 2025 Presidential Memorandum clarified exceptions to the initial order, and now, the new order recognizes China’s willingness to engage in economic and national security dialogues as a “significant step” toward remedying non-reciprocal trade arrangements.
Key Changes to the Harmonized Tariff Schedule
The new order implements several targeted modifications to the Harmonized Tariff Schedule of the United States (HTSUS):
- Heading 9903.01.25 is amended to redefine its article description.
- Heading 9903.01.63 and related sub-notes are revised to lower specified duty rates from 125% to 34%.
- These changes, along with subdivision adjustments, will be suspended for 90 days starting May 14, 2025.
Adjustment to Low-Value Import Tariffs
In connection with Executive Order 14256 (April 2, 2025) targeting synthetic opioid supply chains, President Trump also ordered:
- A reduction of duty from 120% to 54% on low-value imports from the PRC.
- The continuation of a $100 per postal item duty, first enforced on May 2, 2025, unless changed by future executive action.
- The cancellation of a planned increase to $200 per item, originally scheduled for June 1, 2025.
Interagency Implementation
The order directs multiple federal entities—including the Departments of Commerce, Homeland Security, State, and Treasury, as well as the U.S. Trade Representative—to take all necessary regulatory and enforcement actions. These agencies are authorized to use powers granted under the International Emergency Economic Powers Act (IEEPA) to ensure full and effective implementation.
Outlook
This 90-day suspension represents a strategic pause, signaling the Trump administration’s readiness to negotiate while maintaining leverage through conditional tariff frameworks. Whether this shift results in more lasting changes will depend on further developments in U.S.-China trade talks.
