Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China
This presidential action amends a previous executive order to further increase tariffs on Chinese goods to 20 percent.
The rationale is the People's Republic of China's (PRC) failure to effectively curb the flow of fentanyl into the United States.
The President invoked existing legal authority to escalate these economic sanctions, aiming to pressure the PRC to take stronger measures against the opioid crisis.
Arguments For
Intended Benefit: Reduce the flow of fentanyl from China into the United States by increasing economic pressure on the PRC.
Evidence Cited: The President cites the PRC's insufficient actions to address the opioid crisis as justification for increased tariffs.
Implementation Method: The amendment increases existing tariffs on specified Chinese goods from 10% to 20%.
Legal/Historical Basis: The action is justified under the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and sections of the Trade Act of 1974 and the U.S. Code.
Arguments Against
Potential Impacts: Increased tariffs may harm US consumers through higher prices and US businesses through increased input costs.
Implementation Challenges: China may retaliate with its own tariffs, leading to a trade war.
Alternative Approaches: Diplomacy, increased international cooperation on drug enforcement, and focusing on domestic solutions to addiction could be explored as alternatives or in conjunction with tariffs.
Unintended Effects: Increased tariffs might negatively impact industries unrelated to the opioid trade and may disproportionately affect low-income consumers.
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:
This section establishes the presidential authority for the action.
It lists the legal basis for implementing increased tariffs on Chinese goods, citing various acts and sections of US Code.
Section 1. Background. With Executive Order 14195 of February 1, 2025 (Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China), I determined that the failure of the Government of the People’s Republic of China (PRC) to act to blunt the sustained influx of synthetic opioids, including fentanyl, flowing from the PRC to the United States constituted an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States. To address that threat, I invoked my authority under section 1702(a)(1)(B) of IEEPA to impose ad valorem tariffs on articles that are products of the PRC, as defined by the Federal Register notice described in section 2(d) of Executive Order 14195, as amended by Executive Order 14200 of February 5, 2025 (Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China).
Pursuant to section 3 of Executive Order 14195, I have determined that the PRC has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions, and that the crisis described in Executive Order 14195 has not abated.
This section provides the context for the amendment.
It explains that the original executive order (14195) imposed tariffs due to China's insufficient action on the fentanyl crisis, which was deemed a threat to national security, foreign policy, and the economy.
This section notes the continued lack of action from the PRC, leading to the need for further action.
Sec. 2. Amendment. In recognition of the fact that the PRC has not taken adequate steps to alleviate the illicit drug crisis, section 2(a) of Executive Order 14195 is hereby amended by striking the words “10 percent” and inserting in lieu thereof the words “20 percent”.
This section details the specific amendment to Executive Order 14195.
The tariff rate on Chinese goods specified in the original order is increased from 10% to 20%.
This increase is a direct response to the continued influx of fentanyl from China.
Sec. 3. 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.
This section outlines several caveats and limitations to the executive order.
Subsection (a) clarifies that the order does not diminish the existing authority of other government bodies.
Subsection (b) makes clear that the order's implementation is contingent on available funding and laws.
Subsection (c) states that the order does not establish new legal rights or entitlements.