Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People’s Republic of China

April 8, 2025

Executive Orders

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Action Summary

Background and Authority: Declares use of presidential authority under IEEPA, National Emergencies Act, and Trade Act to address persistent U.S. trade deficits and national security threats; builds on Executive Orders 14257 and 14256.
Retaliatory Measures Against the PRC: In response to the People’s Republic of China’s (PRC) announced 34% tariff on U.S. goods, this order mandates an increase in tariffs on specific U.S. imports from the PRC.
Tariff Modifications (Section 2):
- Amends heading 9903.01.63 of the HTSUS by replacing “34%” with “84%”.
- Updates subdivision (v)(xiii)(10) of the U.S. note to subchapter III, chapter 99, similarly changing “34%” to “84%”.
De Minimis Tariff Increases (Section 3):
- Increases the ad valorem duty from 30% to 90%.
- Raises the per postal item duty from $25 to $75 effective May 2, 2025 through May 31, 2025.
- Raises the per postal item duty from $50 to $150 effective June 1, 2025 onward.
Implementation (Section 4): Directs the Secretary of Commerce, Secretary of Homeland Security, and the U.S. Trade Representative, in coordination with other key departments, to take necessary actions including regulatory adjustments to enforce the order.
General Provisions (Section 5): Reaffirms that the order does not affect existing statutory authorities of executive departments and limits any enforceable rights against the government.

Risks & Considerations

The amendment to reciprocal tariffs and updated duties on low-value imports from China could lead to increased costs for goods and materials imported by Vanderbilt University, particularly if any of these goods are sourced from China. This could affect budget allocations and financial planning.
There is a risk of further escalation in trade tensions between the United States and China, which could impact international collaborations and partnerships that Vanderbilt University may have with Chinese institutions or companies.
The increased tariffs could lead to a rise in the cost of research materials and equipment, potentially affecting ongoing and future research projects at Vanderbilt University.
Vanderbilt University may need to reassess its supply chain strategies to mitigate the impact of increased tariffs on imported goods, which could involve seeking alternative suppliers or negotiating new terms with existing ones.

Impacted Programs

Vanderbilt’s Research Departments may face increased costs for materials and equipment, necessitating adjustments in research budgets and funding strategies.
The Office of International Affairs might need to monitor the situation closely to ensure that international collaborations, particularly with Chinese institutions, are not adversely affected by the trade tensions.
Procurement and Supply Chain Management at Vanderbilt may need to explore alternative sourcing options to mitigate the impact of increased tariffs on imported goods.

Financial Impact

The increased tariffs could lead to higher operational costs for Vanderbilt University, particularly if any essential goods or materials are imported from China.
There may be a need to reallocate financial resources to cover the increased costs associated with tariffs, potentially affecting other areas of the university’s budget.
Vanderbilt University might experience changes in its funding opportunities, particularly if federal discretionary grants are affected by the broader economic impact of the trade tensions.

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

Key Actions

Vanderbilt’s Office of Federal Relations should closely monitor the changes in tariffs and duties, particularly those affecting imports from China, as these could impact the cost of goods and materials used in university operations and research. Engaging with trade experts to understand the implications of these changes will be crucial.
The Department of Economics should conduct research on the potential economic impacts of increased tariffs on the U.S. economy and share findings with policymakers and the university community. This research can provide valuable insights into how these policies might affect economic conditions and trade relations.
Vanderbilt’s Procurement Office should evaluate the potential impact of increased tariffs on the cost of imported goods and services. By identifying alternative suppliers or negotiating better terms with existing suppliers, the university can mitigate potential cost increases.
The Center for International Business should explore opportunities to engage in discussions and forums on international trade policies. By positioning itself as a thought leader in this area, Vanderbilt can enhance its reputation and influence in shaping trade policy discussions.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Owen Graduate School of Management to develop new courses or programs focused on international trade and economic policy. By leveraging its expertise in business and economics, the school can attract students interested in understanding the complexities of global trade.
Vanderbilt can capitalize on the increased focus on trade policies by hosting conferences and workshops on the implications of these changes. This could include inviting policymakers, industry leaders, and academics to discuss the future of international trade and its impact on the economy.
The emphasis on national security and economic stability offers an opportunity for Vanderbilt’s Law School to engage in policy analysis and advocacy. By providing evidence-based recommendations, the school can influence how trade policies are developed and implemented.

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

Average Relevance Score: 4.2

Timeline for Implementation

April 9, 2025: HTSUS modifications for goods entered for consumption take effect.
May 2, 2025: Duty-free de minimis treatment is terminated at 12:01 a.m. EDT and the first phase of postal item duty increases begins.
June 1, 2025: The second phase of postal item duty increases takes effect.

The directives include multiple timelines; the shortest deadline is the HTSUS modification taking effect on April 9, 2025, which is less than 30 days after the order issuance.

Relevance Score: 5

Impacted Government Organizations

Department of Commerce (Secretary of Commerce): Charged with implementing the modifications to the Harmonized Tariff Schedule and ensuring that trade policies are effectively enforced.
Department of Homeland Security (Secretary of Homeland Security): Responsible for supporting the implementation of the order through its security and regulatory oversight functions.
United States Trade Representative (USTR): Tasked with executing trade negotiations and responding to retaliatory measures from trading partners.
Department of State (Secretary of State): Provides consultation on the international diplomatic implications of the revised tariff measures.
Department of the Treasury (Secretary of the Treasury): Involved in evaluating the economic and fiscal impacts of the tariff adjustments and related trade policies.
Assistant to the President for Economic Policy: Advises on economic policy implications and assists in coordinating policy actions across agencies.
Senior Counselor for Trade and Manufacturing: Provides strategic guidance on trade and manufacturing issues affected by the tariff modifications.
Assistant to the President for National Security Affairs: Advises on the national security implications of the tariff and trade policy adjustments.
International Trade Commission (Chair of ITC): Plays a key role in reviewing and classifying the modifications to trade measures and tariffs under the HTSUS.

Relevance Score: 3 (Multiple agencies, totaling 9 distinct entities, are directly impacted by this executive action.)

Responsible Officials

Secretary of Commerce – Charged with implementing modifications to the Harmonized Tariff Schedule and other trade-related regulations.
Secretary of Homeland Security – Responsible for taking necessary actions as directed in this order, ensuring compliance and enforcement of the new tariff measures.
United States Trade Representative – Tasked with implementing and effecting trade policy adjustments and tariff modifications in response to retaliatory measures.
In consultation with:
- Secretary of State – Advising on international implications of the modified tariffs.
- Secretary of the Treasury – Providing fiscal oversight and guidance on economic policies related to the order.
- Assistant to the President for Economic Policy – Consulting on economic impacts and implementation strategies.
- Senior Counselor for Trade and Manufacturing – Offering expertise to ensure effective administration of the order.
- Assistant to the President for National Security Affairs – Assisting on national security considerations inherent in the economic actions.
- Chair of the International Trade Commission – Advising on trade ramifications and compliance with international trade laws.

Relevance Score: 5 (Directives affect Cabinet-level and senior White House officials, highlighting significant national security and economic implications.)