E.O. 14266: Reciprocal Tariff Mods

Summary

Raises taxes on goods from China in response to their new taxes and pauses high taxes for other countries that are working with the U.S. on trade.

What problem does this solve?

China has fought back against U.S. tariffs by adding its own large tariffs on American goods, making the trade problem worse. This order increases U.S. tariffs on China even more while rewarding other countries that are cooperating on trade issues.

Who does this affect?

U.S. importers and exporters
Chinese manufacturers
U.S. consumers

What does this order do?

Increases tariffs on goods from China to 125%

Raises the additional tariff rate on imports from the People's Republic of China from 84 percent to 125 percent in response to China's retaliatory tariffs.

Suspends specific tariffs for other countries for 90 days

Pauses country-specific tariffs for many trading partners for 90 days. Instead, it applies a lower, flat 10 percent additional tariff on goods from these countries.

Raises duties on small, low-value shipments

Increases the duty on low-value imports from 90 percent to 120 percent. It also raises the per-package fee for postal items in two steps, up to $200.

What is the real world impact?

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Rewards cooperating trade partners

Temporarily suspends specific high tariffs for over 75 other countries and replaces them with a lower 10% rate. This encourages other nations to align with U.S. economic and security goals.

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Pressures China in an ongoing trade dispute

Increases tariffs on Chinese goods to 125% to counter China's own tariff hikes. This action aims to make Chinese imports more expensive, hoping to force China to change its trade practices.

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Could increase prices for American consumers

Higher tariffs on Chinese goods, including small packages, can lead to increased costs for businesses and consumers in the United States. This could make many everyday items more expensive.

When does this start?

This order's changes, including new tariff rates, take effect at 12:01 a.m. eastern daylight time on April 10, 2025, with other deadlines following.

New tariffs on China and other nations begin

The increased 125% tariff on Chinese goods and the temporary 10% tariff for other partners both start at 12:01 a.m. on April 10, 2025.

Suspension of country-specific tariffs ends

The 90-day suspension of specific tariffs for allied trading partners ends at 12:01 a.m. on July 9, 2025.

First increase for postal item duty

The duty per postal item containing goods increases to $100 starting at 12:01 a.m. on May 2, 2025.

Second increase for postal item duty

The duty per postal item containing goods increases again to $200 starting at 12:01 a.m. on June 1, 2025.