Modifying Reciprocal Tariff Rates Consistent with the Economic and Trade Arrangement Between the United States and the People’s Republic of China
AI Summary
Executive Order 14257 Analysis: Reciprocal Tariff Rates with China
Executive Summary
This executive order continues a suspension of heightened tariffs on Chinese imports through November 10, 2026, implementing a trade agreement reached between President Trump and Chinese President Xi Jinping on October 30, 2025. The order codifies a bilateral economic arrangement designed to address trade imbalances, secure access to critical materials, and boost American agriculture and manufacturing sectors while the two countries maintain reduced tariff rates and engage in ongoing trade negotiations.
Key Directives
Primary Action:
- Maintain suspension of heightened reciprocal tariffs on People's Republic of China (PRC) imports until 12:01 a.m. EST on November 10, 2026
- Continue the 10% additional ad valorem duty rate on Chinese articles (rather than the previously threatened higher rates)
Monitoring Requirements:
- Treasury Secretary, Commerce Secretary, and U.S. Trade Representative must continuously monitor:
- U.S. trade deficit levels
- Trade reciprocity and tariff rate disparities
- China's adherence to agreement commitments
- Strength of domestic manufacturing and defense industrial bases
- Foreign economic policies affecting U.S. interests
Chinese Commitments Tracked:
- Elimination of coercive export controls on rare earth elements and critical minerals
- Resolution of Chinese retaliation against U.S. semiconductor manufacturers
- Purchases of U.S. agricultural products (soybeans, sorghum, logs)
- Suspension of Chinese retaliatory tariffs on U.S. agricultural products until December 31, 2026
- Extension of China's tariff exclusion process for U.S. imports until November 10, 2026
Contingency Authority:
- President retains authority to modify the order if China fails to implement its commitments
Affected Agencies & Stakeholders
Primary Implementing Agencies:
- Department of the Treasury
- Department of Commerce
- Office of the U.S. Trade Representative
- Department of State (consulting role)
- Department of Homeland Security
- White House Economic Policy Office
Stakeholder Groups Affected:
| Group | Impact | |-------|--------| | U.S. Agricultural Sector | Benefits from increased guaranteed Chinese purchases and tariff relief through end of 2026 | | Manufacturing Sector | Benefits from improved access to rare earth elements and critical minerals; semiconductor suppliers benefit from resolution of Chinese retaliation | | Defense Industrial Base | Benefits from secured access to critical materials essential for national defense | | Importers/Retailers | Benefit from lower tariff rates (10% vs. threatened higher rates) on Chinese goods | | U.S. Consumers | Potentially benefits from lower cost of imported Chinese goods due to reduced tariffs | | Trading Partners | May face pressure or comparison regarding their own trade arrangements with the U.S. |
Implementation & Timeline
Key Dates:
- November 4, 2025: Executive order signed
- November 10, 2026: Deadline for suspension of heightened tariffs (12:01 a.m. EST)
- December 31, 2026: Chinese suspension of retaliatory tariffs on U.S. agricultural products expires
Reporting & Review Structure:
- Ongoing monitoring with periodic updates to the President
- Treasury Secretary and U.S. Trade Representative to specifically track China's implementation progress
- Multi-agency consultation process involving Treasury, Commerce, State Department, Homeland Security, and White House economic/national security advisors
- Authority to recommend modifications if circumstances warrant
Regulatory Implementation:
- Secretary of Treasury, Commerce, Homeland Security, and U.S. Trade Representative authorized to adopt rules, regulations, and guidance as needed
- Authority delegated through departmental channels as appropriate
Policy Impact
Policy Areas Addressed:
- International Trade: Implements bilateral trade framework with world's second-largest economy
- National Security: Addresses strategic access to rare earth elements and critical minerals vital for defense and energy sectors
- Agricultural Policy: Guarantees market access and purchases for major American agricultural exports
- Manufacturing Policy: Protects and strengthens domestic manufacturing and defense industrial bases
- Economic Policy: Aims to reduce trade deficit and stimulate economic growth
Relationship to Previous Orders:
- Modifies and supersedes previous escalatory tariff orders (EO 14257, 14259, 14266)
- Continues from earlier suspension frameworks (EO 14298, 14334)
- Represents shift from tariff escalation to negotiated agreement approach
Potential Benefits:
- Reduced costs for U.S. importers and consumers through lower tariff rates
- Guaranteed agricultural export markets supporting farm economy
- Secured supply chains for critical defense materials
- Predictability through defined expiration date (November 10, 2026)
Potential Concerns:
- Uncertainty about enforcement of Chinese commitments
- Restoration of higher tariffs possible if agreement not honored
- Economic impacts if tariffs are reimposed after November 2026
- Questions about whether trade deficit reduction will be achieved
- Limited protections for U.S. manufacturers against Chinese competition during suspension period
Background & Context
Origins of This Order:
In April 2025, President Trump declared a national emergency related to "large and persistent annual U.S. goods trade deficits," citing national security concerns. This declaration triggered:
- Executive Order 14257 (April 2, 2025): Imposing reciprocal tariffs and additional duties on imports
- Subsequent escalations: EO 14259 (April 8) and EO 14266 (April 9) raised tariff rates on Chinese imports in response to Chinese retaliation
Evolution to Current Arrangement:
Rather than continuing tariff escalation, the administration pivoted to direct negotiations:
- EO 14298 (May 12, 2025) and EO 14334 (August 11, 2025) suspended heightened tariffs, reducing Chinese duties to 10% while negotiations continued
- October 30, 2025 bilateral meeting between Presidents Trump and Xi Jinping produced the "Kuala Lumpur Joint Arrangement"
Strategic Rationale:
According to the order, the arrangement is designed to:
- Remedy non-reciprocal trade arrangements
- Address trade deficits and economic imbalances
- Secure access to materials vital to national defense and energy sectors
- Strengthen U.S. agricultural, manufacturing, and defense industrial bases
- Provide a structured path forward rather than continued tariff escalation
National Emergency Context:
The order maintains the underlying declaration that trade deficits constitute an "unusual and extraordinary threat to national security," providing legal authority for continued executive action and the possibility of reimposing tariffs if the agreement is violated.
Notable Provisions
Sunset Clause: The order explicitly expires on November 10, 2026, creating a defined negotiation window. After this date, Congress and the administration will need to reassess whether to renew the agreement, pursue additional modifications, or allow tariffs to increase.
Conditional Nature: Section 3(b) explicitly reserves presidential authority to modify tariffs if China fails to implement its commitments, making this a performance-based agreement.
Cost Transparency: Section 6(d) notes that publication costs will be borne by the Office of the U.S. Trade Representative, rather than general government funds.
Full Text
Presidential Actions
MODIFYING RECIPROCAL TARIFF RATES CONSISTENT WITH THE ECONOMIC AND TRADE ARRANGEMENT BETWEEN THE UNITED STATES AND THE PEOPLE’S REPUBLIC OF CHINA
Executive Orders
November 4, 2025
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
Section 1. Background. In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), I found that conditions reflected in large and persistent annual U.S. goods trade deficits, including the consequences of those deficits, constitute an unusual and extraordinary threat to the national security and economy of the United States that has its source in whole or substantial part outside the United States. I declared a national emergency with respect to that threat, and to deal with that threat, I imposed additional ad valorem duties that I deemed necessary and appropriate.
In Executive Order 14259 of April 8, 2025 (Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports From the People’s Republic of China), and Executive Order 14266 of April 9, 2025 (Modifying Reciprocal Tariff Rates To Reflect Trading Partner Retaliation and Alignment), I raised the applicable ad valorem duty rate for imports of the People’s Republic of China (PRC) established in Executive Order 14257, in recognition of the PRC‘s retaliation against the United States in response to the actions taken to address the emergency declared in Executive Order 14257.
Subsequently, the United States entered into discussions with the PRC to address the lack of trade reciprocity in our economic relationship and the United States’ resulting national and economic security concerns. Accordingly, in Executive Order 14298 of May 12, 2025 (Modifying Reciprocal Tariff Rates To Reflect Discussions With the People’s Republic of China), and Executive Order 14334 of August 11, 2025 (Further Modifying Reciprocal Tariff Rates To Reflect Ongoing Discussions With the People’s Republic of China), I determined that it was necessary and appropriate to address the emergency declared in Executive Order 14257 by suspending application of the heightened ad valorem duties imposed on the PRC under Executive Order 14257, as amended, and to instead impose on articles of the PRC an additional ad valorem rate of duty of 10 percent. During the suspension, the United States continued to have discussions with the PRC to address the lack of trade reciprocity in the United States’ economic relationship with the PRC and the United States’ resulting national and economic security concerns.
Following my meeting with President Xi Jinping of the People’s Republic of China on October 30, 2025, in the Republic of Korea, the United States and the PRC reached a historic and monumental deal on economic and trade relations (Kuala Lumpur Joint Arrangement or Arrangement). Under the Arrangement, the PRC has committed to, among other things, postpone and effectively eliminate the PRC’s current and proposed coercive global export controls on rare earth elements and other critical minerals, and address Chinese retaliation against United States semiconductor manufacturers and other major companies in the semiconductor supply chain. The PRC has also committed to purchase United States agricultural exports integral to the economy and general welfare of the United States, including soybeans, sorghum, and logs. And the PRC has committed to suspend or remove many retaliatory actions against the United States, including suspending tariffs on a vast swath of United States agricultural products until December 31, 2026, and extending the PRC’s market-based tariff exclusion process for United States imports until November 10, 2026.
The United States, in turn, committed to, among other things, maintain the suspension of heightened reciprocal tariffs on imports of the PRC until 12:01 a.m. eastern standard time on November 10, 2026.
In my judgment, the Arrangement will help remedy non‑reciprocal trade arrangements and address the United States’ economic and national security concerns. The Arrangement will reduce the United States’ trade deficit, boost the economy of the United States, and address the consequences of the United States’ trade deficit by, among other things, ensuring that the United States has access to materials vital to national defense, the energy sector, and other aspects of the United States’ economy and national security; strengthening the agricultural infrastructure of the United States; and strengthening the manufacturing and defense industrial base of the United States.
Accordingly, I have determined that it is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 by implementing the Arrangement between the United States and the PRC. Therefore, I determine that it is necessary and appropriate to continue the suspension of the heightened reciprocal tariffs on imports of the PRC until 12:01 a.m. eastern standard time on November 10, 2026.
Sec. 2. Implementation. Heading 9903.01.63 and subdivision (v)(xvii)(10) of U.S. note 2 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States shall continue to be suspended until 12:01 a.m. eastern standard time on November 10, 2026.
Sec. 3. Monitoring and Recommendations. (a) The Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative, in consultation with the Secretary of State and any other officials they deem appropriate, shall continue to monitor the conditions underlying the national emergency declared in Executive Order 14257, including the United States’ trade deficit, the lack of reciprocity in our bilateral trade relationships, disparate tariff rates and non-tariff barriers, United States trading partners’ economic policies that suppress domestic wages and consumption imports, the strength of our domestic manufacturing base, the strength of our defense industrial base, and any other relevant factors. The Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative shall, from time to time, update me on the status of these conditions. In particular, the Secretary of the Treasury and the United States Trade Representative shall update me on the status and progress of the PRC’s implementation of its commitments under the Arrangement.
(b) Should the PRC fail to implement its commitments under the Arrangement, I may modify this order as necessary to deal with the emergency declared in Executive Order 14257.
(c) The Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative, in consultation with the Secretary of State, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, the Senior Counselor for Trade and Manufacturing, and the Assistant to the President for National Security Affairs, shall continue to inform me of any circumstance that, in their opinion, might indicate the need for further action and shall continue to recommend to me additional action that, in their opinion, will more effectively deal with the emergency declared in Executive Order 14257.
Sec. 4. Delegation. Consistent with applicable law, the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative are directed and authorized to take such actions, including adopting rules, regulations, or guidance, and to employ all powers granted to the President, including those granted by IEEPA, as may be necessary to implement and effectuate this order. The Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative, consistent with applicable law, may redelegate any of these functions within their respective department or agency. All executive departments and agencies shall take all appropriate measures within their authority to implement this order.
Sec. 5. Severability. If any provision of this order, or the application of any provision of this order to any individual or circumstance, is held to be invalid, the remainder of this order and the application of its provisions to any other individuals or circumstances shall not be affected.
Sec. 6. 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 or 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.
DONALD J. TRUMP
THE WHITE HOUSE,
November 4, 2025.