Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China

February 1, 2025

Presidential Actions

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Action Summary

Objective: Address the public health crisis posed by synthetic opioids—killing approximately 200 Americans per day and devastating communities—by targeting the supply chain originating from the People’s Republic of China (PRC).
Findings:
- The PRC, under the influence of the Chinese Communist Party, subsidizes chemical companies and enables illicit opioid production.
- PRC-based companies employ deceptive practices (e.g., false invoices, fraudulent postage, re-shippers) to circumvent law enforcement in the shipment of fentanyl and its precursors.
- Transnational criminal organizations, supported by the PRC, launder revenues and distribute these dangerous drugs.
National Emergency Declaration:
- Expansion of the previously declared national emergency (citing IEEPA and NEA) to include the failure of the PRC to intercept chemical precursor suppliers and related criminal networks.
- This action is deemed a direct threat to national security, foreign policy, and the U.S. economy.
Tariff Measures:
- Imposition of an additional 10% ad valorem duty on all articles that are products of the PRC, effective from February 4, 2025, with specific exemptions for goods loaded before February 1, 2025 under certification provisions.
- The additional duty is cumulative with other applicable fees, and no duty-free de minimis treatment applies.
- The order allows for potential tariff increases or expansion if the PRC retaliates with import duties on U.S. exports.
Implementation and Coordination:
- The Secretary of Homeland Security is tasked with modifying the Harmonized Tariff Schedule to enforce these tariffs and is authorized to adopt necessary rules and regulations.
- Regular consultations and reporting involving the Secretaries of State, Treasury, Commerce, the Attorney General, and national security advisors ensure continuous monitoring of PRC actions and determine tariff adjustments or removal upon sufficient compliance.
Legal and Administrative Provisions:
- The order reinforces executive authority under IEEPA and NEA and suspends any previous directives inconsistent with its provisions.
- It clarifies that no legal rights or benefits are conferred to any party and mandates that actions be implemented in accordance with applicable law and budgetary constraints.

Risks & Considerations

The Executive Order imposes additional tariffs on products from the People’s Republic of China (PRC), which could lead to increased costs for goods and materials imported from China. This may affect Vanderbilt University’s procurement processes, especially if any research or operational materials are sourced from China.
There is a risk of retaliatory measures from the PRC, which could impact U.S. exports. This may affect any international collaborations or partnerships that Vanderbilt University has with Chinese institutions or companies.
The focus on addressing the synthetic opioid crisis may lead to increased scrutiny and regulation of chemical imports. This could impact research activities at Vanderbilt that involve chemical substances, necessitating compliance with new import regulations.
The national emergency declaration and the associated tariffs could lead to broader economic implications, potentially affecting federal funding and grants available for research and development at Vanderbilt University.

Impacted Programs

Vanderbilt University Medical Center may see increased demand for research and expertise in opioid addiction treatment and public health policy, presenting opportunities for collaboration with federal agencies.
The Office of Global Strategy might need to reassess its international partnerships, particularly those involving Chinese institutions, to ensure alignment with the new trade policies.
Research departments that rely on imported materials from China may need to explore alternative sourcing options or adjust their budgets to accommodate potential cost increases due to tariffs.
The Center for Health Policy could play a crucial role in analyzing the impact of the opioid crisis and the effectiveness of the Executive Order’s measures, contributing to policy recommendations.

Financial Impact

The imposition of tariffs on Chinese products could lead to increased costs for goods and materials, affecting the university’s budget and procurement strategies.
Potential retaliatory actions by the PRC could impact funding opportunities and collaborations with Chinese institutions, necessitating adjustments in international research partnerships.
There may be increased opportunities for Vanderbilt to secure funding for research related to opioid addiction and public health policy, particularly through collaborations with federal agencies addressing the crisis.
The broader economic implications of the national emergency declaration could affect federal funding availability for research and development, requiring strategic adjustments in grant applications and funding strategies.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor developments related to the imposition of tariffs on products from the PRC. Understanding the impact of these tariffs on research materials and equipment sourced from China will be crucial for budgeting and procurement strategies.
The Department of Political Science should consider conducting research on the geopolitical implications of the executive order, particularly how it affects U.S.-China relations and international trade dynamics. This research could provide valuable insights for policymakers and contribute to academic discourse.
Vanderbilt’s Center for Health Policy should explore opportunities to engage in policy analysis and advocacy related to the opioid crisis. By providing evidence-based recommendations, the center can influence public health strategies and contribute to national efforts to combat opioid addiction.
The School of Medicine should assess the potential impact of the opioid crisis on healthcare education and training programs. Developing curricula that address addiction treatment and prevention could enhance the university’s role in preparing healthcare professionals to tackle this public health challenge.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Law School to expand its research and teaching on international trade law and economic sanctions. By leveraging its expertise, the law school can contribute to the understanding of legal frameworks governing international trade and economic policy.
Vanderbilt can capitalize on the increased focus on public health by developing interdisciplinary programs that address the opioid crisis. This could include collaborations between the School of Medicine, the Center for Health Policy, and the Department of Political Science to create comprehensive educational and research initiatives.
The emphasis on addressing the opioid crisis offers an opportunity for Vanderbilt’s Peabody College to engage in research on the social and community impacts of addiction. By providing insights into effective community interventions, Peabody can influence policy and practice in addressing substance abuse.
By engaging with federal agencies and policymakers, Vanderbilt can position itself as a leader in the national conversation on public health and trade policy. Hosting conferences, workshops, and public forums on the implications of the executive order can further establish Vanderbilt as a hub for innovative thought and practice.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on trade and public health policy.)

Average Relevance Score: 4.2

Timeline for Implementation

February 4, 2025, at 12:01 a.m. Eastern Time – The tariffs on articles that are products of the PRC will be enforced for goods entered into consumption or withdrawn from warehouse effective this date.

Relevance Score: 5

Impacted Government Organizations

Department of Homeland Security (DHS) – including U.S. Customs and Border Protection: Tasked with modifying the Harmonized Tariff Schedule to implement additional tariffs, enforcing border controls on imported goods, and coordinating with other agencies on the opioid crisis.
Department of State: Required to be consulted regarding diplomatic and cooperative measures with the People’s Republic of China to mitigate the illicit synthetic opioid supply chain.
Department of the Treasury: Involved in coordinating responses and in monitoring the economic impact of the tariffs imposed under this executive order.
Department of Commerce: Consulted to assist with regulatory and trade-related measures, particularly in ensuring compliance with the modifications to the import tariff structures.
Department of Justice (Attorney General): Engaged to provide legal oversight and assist with enforcement actions related to the opioid crisis and associated cross-border criminal activities.
Office of Management and Budget (OMB): Its functions are noted to remain unaffected, ensuring that budgetary and administrative processes are maintained throughout the implementation of the order.

Relevance Score: 3 (Six key agencies are directly impacted by the directives of the executive order.)

Responsible Officials

Secretary of Homeland Security – Charged with determining necessary modifications to the Harmonized Tariff Schedule and overseeing the implementation of the executive order’s directives, including consultations and regulatory actions.
Secretary of State – Required to consult with the Secretary of Homeland Security on assessing whether the People’s Republic of China has taken adequate cooperative actions to address the opioid crisis.
Attorney General – Tasked with providing legal counsel and consultation alongside other senior officials in evaluating the situation and advising on further necessary actions.
Assistant to the President for National Security Affairs – Involved in regular consultations with the Secretary of Homeland Security and other cabinet officials regarding the national security implications of the opioid supply chain problem.
Assistant to the President for Homeland Security – Similarly engaged in the monitoring and coordination process to ensure effective response to the crisis.
Secretary of the Treasury – Consulted for coordination on measures that may have financial or trade implications under the order.
Secretary of Commerce – Responsible for coordination and policy actions relating to trade and tariff modifications as they impact U.S. commercial interests.

Relevance Score: 5 (Directives affect multiple cabinet-level officials responsible for national security, trade, and law enforcement coordination.)