Executive Order & CBP Updated Guidance: Further Modifying Reciprocal Tariff Rates to Reflect Ongoing Discussions with The People’s Republic of China
This article contains a summary of President Trump’s Executive Order & Customs Border Protection’s updated guidance publication.
- Executive Order August 11, 2025: Further Modifying Reciprocal Tariff Rates to Reflect Ongoing Discussions with The People’s Republic of China
- CSMS # 65894387 – UPDATE โ Reciprocal Tariff Rate for China
To review the complete document, please click on the following links:
CSMS # 65894387 – UPDATE โ Reciprocal Tariff Rate for China
Executive Order: Further Modifying Reciprocal Tariff Rates to Reflect Ongoing Discussions with The People’s Republic of China
Section 1. Background
Key Developments in Trade Policy (April-August 2025)
- National Emergency Declared: In April 2025, the U.S. declared a national emergency due to large and persistent trade deficits, citing threats to national security and economic stability
- Initial Tariff Implementation: Executive Order 14257 (April 2) imposed new tariffs on imports to address unfair trading practices contributing to massive trade imbalances
- China-Specific Measures: Additional executive orders in April specifically targeted imports from China with higher tariff rates after the Chinese government announced retaliatory measures
- Escalation and Response: When China’s State Council Tariff Commission threatened retaliation, the U.S. modified tariff schedules to raise duties on Chinese imports even further
Diplomatic Breakthrough and Negotiations
- Dialogue Begins: The U.S. and China entered discussions to address trade reciprocity issues and national security concerns affecting both nations
- 90-Day Suspension: Executive Order 14298 (May 12) suspended the harshest tariffs for 90 days, replacing them with modified duties while negotiations continued
- Progress Acknowledged: China began taking “significant steps” to remedy non-reciprocal trade arrangements and address U.S. economic and security concerns
Current Status and Timeline
- Extension Granted: The original 90-day suspension (ending August 12, 2025) has been extended until November 10, 2025 at 12:01 a.m. Eastern Standard Time
- Ongoing Discussions: U.S.-China trade talks continue, with both sides working toward resolving fundamental trade imbalances
- Conditional Relief: The tariff suspension remains contingent on China’s continued cooperation in addressing trade reciprocity and security concerns
What This Means
- Temporary Stability: Businesses and consumers benefit from reduced tariffs while negotiations proceed
- Future Uncertainty: The November deadline creates pressure for both countries to reach a comprehensive agreement
- National Security Focus: Trade policy remains tied to broader national security considerations, not just economic factors
Section 2. Continued Suspension of Country-Specific Ad Valorem Rate of Duty
Heading 9903.01.63 and subdivision (v)(xiv)(10) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS shall continue to be suspended until 12:01 a.m. eastern standard time on November 10, 2025.
Section 3. Implementation
- Key Officials Responsible: Secretary of Commerce, Secretary of Homeland Security, and US Trade Representative lead implementation efforts
- Consultation Team: Work alongside Secretary of State, Treasury Secretary, National Security Advisor, and other senior officials
- Broad Authority Granted: Officials authorized to use all necessary actions including:
- Temporary suspension of regulations
- Amendment of Federal Register notices
- Adoption of new rules and regulations
- Presidential Powers: Officials can employ all IEEPA powers granted to the President
- Government-Wide Implementation: Every executive department and agency must take appropriate measures within their authority
- Legal Compliance: All actions must remain consistent with applicable law
Section 4. General Provisions
- (a) Nothing in this order shall be construed to impair or otherwise affect:
- (i) the authority granted by law to an executive department, agency, or the head thereof; or
- (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
- (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
- (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
- (d) The costs for publication of this order shall be borne by the Office of the United States Trade Representative.
CBP Updated Guidance: CSMS # 65894387 โ Reciprocal Tariff Rate for China
This guidance implements the Presidential Executive Order issued on August 11, 2025, regarding “Further Modifying Reciprocal Tariff Rates to Reflect Ongoing Discussions with the People’s Republic of China.”
Key Timeline & Suspension Details
- Current suspension continues until 12:01 a.m. EST on November 10, 2025
- Heading 9903.01.63 and related HTSUS provisions remain suspended during this period
- All Chinese imports entered before the November deadline follow existing tariff structure
Tariff Rates & Coverage
- 10% reciprocal tariff applies to covered Chinese products, including goods from Hong Kong and Macau
- Rate established under Executive Order 14257 from April 2, 2025
- Designed to address large, persistent U.S. goods trade deficits with China
- Covers products entered for consumption or withdrawn from warehouse before the deadline
Product Classification & Reporting
- Heading 9903.01.25 applies to most Chinese products
- Excludes specific categories listed in headings 9903.01.26โ9903.01.33 and 9903.02.02โ9903.02.71
- Special provisions exist for certain products under headings 9903.01.34 and 9903.02.01
- Importers must report products using designated classification codes
Additional Synthetic Opioid Duties
- Separate 20% additional duty remains in effect for Chinese and Hong Kong products
- Established under Executive Orders 14195 (February 1, 2025) and 14228 (March 3, 2025)
- Specifically targets synthetic opioid supply chain concerns
- Applies in addition to the 10% reciprocal tariff unless products qualify for exceptions
- Both duties may apply simultaneously to eligible products
Important Considerations
- These measures reflect ongoing trade discussions between the U.S. and China
- Businesses should prepare for potential changes after November 10, 2025
- Multiple duty rates may apply to single shipments depending on product classification
- Importers should verify their products’ specific classification requirements
Should you or your organization have any questions,
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