WASHINGTON, D.C. — April 10, 2025 — In a sweeping move aimed at countering foreign trade retaliation and strengthening national economic security, President Donald J. Trump signed a new executive order today modifying U.S. tariff policy, significantly increasing duties on imports from the People’s Republic of China while temporarily easing tariffs for allied nations showing a willingness to align with U.S. trade objectives.
The action builds on two prior executive orders issued earlier this month that declared a national emergency due to persistent U.S. trade deficits and introduced reciprocal tariffs targeting nations with non-reciprocal trade practices.
Tariffs on China Spike to 125%
Citing China’s recent retaliatory move to impose an 84% tariff on U.S. goods, President Trump has ordered that U.S. tariffs on Chinese imports—effective immediately—be raised to 125%, including goods from Hong Kong and Macau. The decision reflects what the administration described as a necessary escalation in response to China’s “systemic excess manufacturing capacity” and “suppression of U.S. domestic manufacturing.”
These measures are intended to directly confront policies that the administration argues contribute to the long-standing U.S. goods trade deficit and threaten national security.
Temporary Relief for Cooperative Trade Partners
At the same time, the executive order provides relief to over 75 foreign trading partners who have signaled willingness to work with the U.S. on improving trade reciprocity. For these countries, individual country-specific tariffs imposed under a previous order will be suspended for 90 days, and a flat 10% duty will be applied across the board in their place. The goal, the order states, is to foster alignment on both economic and national security fronts.
Crackdown on Low-Value Imports and Postal Shipments
The executive order also raises tariffs on low-value imports tied to the synthetic opioid supply chain. Key changes include:
- Increasing duties on affected Chinese imports from 90% to 120%.
- Raising postal shipment tariffs from $75 to $100 beginning May 2, and then to $200 beginning June 1.
Implementation and Oversight
The Departments of Commerce, Homeland Security, and the U.S. Trade Representative have been directed to coordinate implementation of the new rules, including any regulatory adjustments needed. The administration emphasized that these actions fall under the President’s authority granted by the International Emergency Economic Powers Act and the Trade Act of 1974.
While controversial, the measures are part of a broader effort to rebalance global trade relations and protect key sectors of the U.S. economy from what the administration calls “unfair and threatening practices.”
The new rules took effect at 12:01 a.m. EDT on April 10, 2025, and are expected to remain in place through at least July 9, 2025, pending further review and international negotiations.
