Sec. 1 Background
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.