US responds to China's tariffs with significant duty adjustments on imports

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US responds to China's tariffs with significant duty adjustments on imports

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The United States has announced amendments to its tariff regime in response to the People’s Republic of China's (PRC) retaliatory trade measures. Prompted by a national emergency declared under Executive Order 14257, these changes aim to address the ongoing trade deficits and protect national security.

In recent developments, "the State Council Tariff Commission of the People’s Republic of China announced that... a 34 percent tariff would be imposed on all goods imported into the PRC originating from the United States," effective from April 10, 2025. This measure follows the U.S.' unilateral imposition of a reciprocal tariff designed to rectify perceived trade imbalances.

The U.S. administration has responded by ordering modifications to the Harmonized Tariff Schedule of the United States (HTSUS). "In recognition of the fact that the PRC has announced it will retaliate against the United States," the U.S. will adjust tariffs on Chinese imports. Effective April 9, 2025, tariffs under certain HTSUS headings will increase to 84 percent, up from 34 percent.

Additionally, de minimis tariff rates will rise to prevent circumvention. As per the revised order, ad valorem rates will increase from 30 to 90 percent, and per postal item duties will significantly rise over the following months. From May 2 to June 1, 2025, the duty per postal item will escalate from 25 dollars to 75 dollars, and thereafter, from 50 dollars to 150 dollars.

In implementing these directives, the U.S. government has tasked various departments, "including the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative," to coordinate with other high-level officials and agencies. These authorities have been instructed to employ all legally granted powers to enforce the modifications.

President Donald J. Trump signed the order on April 8, 2025, stating nothing within it should "impair or otherwise affect" existing legal authorities. It is intended to be executed within the boundaries of available appropriations and not to create any new legal rights.

The amendments reflect ongoing economic tensions and are part of broader U.S. efforts to rebalance trade relations with China.

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