Amendment to Duties to Address the Situation at our Southern Border
March 2, 2025
Action Summary
- Presidential Authority: Issued under Constitutional and statutory powers, including the International Emergency Economic Powers Act, National Emergencies Act, and others.
- Amendment Overview: Revises Executive Order 14194 (and its subsequent amendment 14198) concerning duties to address the situation at the Southern border.
- Revised Duty-Free Provision: Updates section 2(g) to allow duty-free de minimis treatment for eligible articles until the Secretary of Commerce confirms that systems are established to process and collect applicable tariff revenue.
- General Provisions:
- No Impairment: The order does not diminish existing legal authority of executive departments or affect the roles of key administrative officials.
- Compliance: Must be implemented in accordance with applicable laws and subject to available appropriations.
- Non-Enforceability: Does not create any enforceable rights or benefits against the United States or its agents.
Risks & Considerations
- The amendment to the Executive Order regarding duties at the Southern Border could impact trade and economic relations, particularly with countries that are major trading partners. This may lead to changes in the cost of goods and services, affecting the broader economic environment.
- There is a potential risk of increased administrative burden on businesses and institutions involved in importing goods, as they may need to adapt to new systems for processing and collecting tariff revenue.
- The cessation of duty-free de minimis treatment could lead to higher costs for imported goods, which may affect research and operational budgets at Vanderbilt University if it relies on imported materials or equipment.
- Changes in trade policy could influence the economic landscape, potentially affecting funding and grants available for research and development, particularly in areas related to international trade and economics.
Impacted Programs
- Vanderbilt’s Owen Graduate School of Management may need to adjust its curriculum to address changes in trade policy and economic conditions, providing students with updated knowledge and skills relevant to the evolving business environment.
- The Department of Economics could see increased demand for expertise in trade policy analysis and economic forecasting, presenting opportunities for research and collaboration with government and industry partners.
- Vanderbilt’s Procurement Office might need to reassess its supply chain strategies to mitigate potential cost increases and ensure the continued availability of necessary resources.
Financial Impact
- The potential increase in costs for imported goods due to the cessation of duty-free de minimis treatment could impact Vanderbilt’s operational expenses, necessitating budget adjustments.
- Changes in trade policy may influence the availability of federal and private funding for research projects, particularly those related to international trade, economics, and public policy.
- Vanderbilt University may need to explore new partnerships and funding opportunities to offset any negative financial impacts resulting from changes in trade policy.
Relevance Score: 3 (The order presents moderate risks involving compliance and potential economic impacts on university operations.)
Key Actions
- Vanderbilt’s Office of Federal Relations should monitor changes in trade policies, particularly those affecting duty-free de minimis treatment, as these could impact research and procurement activities involving international goods. Understanding these changes will help the university adapt its procurement strategies and manage costs effectively.
- The Department of Economics could explore research opportunities related to the economic impacts of changes in tariff policies at the southern border. This research could provide valuable insights into trade dynamics and inform policy discussions.
Opportunities
- The amendment to the executive order presents an opportunity for Vanderbilt’s Law School to engage in legal analysis and scholarship on the implications of trade and tariff policies. This could enhance the university’s reputation as a thought leader in international trade law.
- By collaborating with industry partners, Vanderbilt can leverage its expertise in supply chain management to develop innovative solutions that address challenges posed by changes in trade policies. This could lead to new research initiatives and partnerships.
Relevance Score: 3 (Some adjustments are needed to processes or procedures due to potential impacts on procurement and research activities.)
Timeline for Implementation
N/A – The directive’s execution is contingent upon a notification by the Secretary of Commerce with no specific timeline established.
Relevance Score: 1
Impacted Government Organizations
- Department of Commerce: The order directs the Secretary of Commerce to notify the President when appropriate systems are in place for processing and collecting tariff revenue, making this department central to the amendment.
- Office of Management and Budget (OMB): The order specifically preserves the OMB’s functions regarding budgetary, administrative, and legislative proposals, ensuring its continued operational independence.
Relevance Score: 1 (Only a small number of Federal agencies are explicitly impacted by the amendment.)
Responsible Officials
- Secretary of Commerce – Responsible for notifying the President when adequate systems are established to process and collect tariff revenue under the amended duty-free de minimis treatment provisions.
Relevance Score: 5 (Directly impacts a Cabinet-level official responsible for implementing the directive.)
