Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border
March 6, 2025
Action Summary
- Objective: Amend tariffs under Executive Order 14193 to support the U.S. automotive industry and address the flow of illicit drugs across the northern border.
- Background: Recognizes the significance of the U.S. automotive sector for employment, innovation, and national security; aims to prevent disruptions in the supply chain by adjusting tariffs on Canadian articles.
- Tariff Adjustments:
- Products entered duty-free under general note 11 to the HTSUS (including provisions in subchapters XXIII of chapter 98 and XXII of chapter 99) are excluded from additional ad valorem duties.
- The additional ad valorem duty on potash not covered under the free duty provision is reduced from 25% to 10%.
- Effective Date: Modifications apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on March 7, 2025.
- General Provisions:
- Does not impair the authority of executive departments or the Director of the Office of Management and Budget.
- Implementation is subject to applicable law and appropriations.
- No party may claim any legal or equitable right or benefit against the United States or its agencies based on this order.
Risks & Considerations
- The Executive Order focuses on adjusting tariffs related to the automotive industry and the flow of goods across the northern border, which could impact trade relations and economic stability. This may indirectly affect research funding and partnerships that Vanderbilt University has with automotive companies or related industries.
- Changes in tariffs and trade policies could lead to fluctuations in the economic environment, potentially affecting the job market for graduates in fields related to economics, international relations, and trade.
- The reduction in duties on certain goods, such as potash, may influence agricultural and environmental research programs at Vanderbilt, as these changes could affect the supply chain and market dynamics for related industries.
- Vanderbilt University may need to monitor these changes closely to assess any potential impacts on its international collaborations and partnerships, particularly those involving Canadian institutions or industries.
Impacted Programs
- Vanderbilt’s Owen Graduate School of Management may need to adjust its curriculum to address the evolving trade policies and their implications for business strategy and international trade.
- The Department of Economics could see increased demand for expertise in trade policy analysis and economic forecasting, providing opportunities for research and collaboration with government and industry partners.
- Vanderbilt’s School of Engineering might explore new research opportunities in automotive technology and supply chain optimization, given the focus on minimizing disruptions in the automotive industry.
- The Office of International Affairs may need to evaluate and potentially strengthen its partnerships with Canadian institutions to ensure continued collaboration and exchange of knowledge.
Financial Impact
- Adjustments in tariffs and trade policies could lead to changes in funding opportunities for research and development projects, particularly those related to automotive and trade industries.
- Vanderbilt University might experience shifts in its funding landscape, necessitating strategic adjustments in grant applications and partnerships to align with new economic priorities.
- There may be opportunities for Vanderbilt to secure funding for research in trade policy, economic impact analysis, and international relations, particularly through collaborations with federal agencies and industry partners.
- Changes in the economic environment could affect the job market for graduates, potentially influencing enrollment and tuition revenue in related programs.
Relevance Score: 3 (The order presents moderate risks involving compliance or economic impacts that may affect university programs and partnerships.)
Key Actions
- Vanderbilt’s Office of Federal Relations should monitor changes in trade policies, particularly those affecting the automotive industry, as these could impact research collaborations and funding opportunities related to automotive innovation and supply chain management.
- The Vanderbilt Center for Transportation and Operational Resiliency could explore research opportunities in optimizing supply chains in light of the adjusted tariffs, potentially partnering with industry stakeholders to address challenges and innovations in cross-border trade.
- Vanderbilt’s Economic Development Office should assess the potential impacts of tariff adjustments on local and regional economies, particularly in sectors related to automotive production, to inform strategic planning and community engagement efforts.
Opportunities
- The executive order presents an opportunity for Vanderbilt’s School of Engineering to engage in research and development projects focused on automotive technologies and supply chain efficiencies, leveraging the university’s expertise to contribute to national economic and security interests.
- Vanderbilt can capitalize on the focus on reducing trade barriers by developing partnerships with Canadian institutions and companies, enhancing cross-border research collaborations and educational exchanges.
- The reduction in tariffs on potash could present opportunities for Vanderbilt’s Department of Earth and Environmental Sciences to explore research initiatives related to agricultural and environmental impacts, potentially securing funding for projects that address sustainability and resource management.
Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with changes in trade policies and explore new research opportunities.)
Timeline for Implementation
- Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on March 7, 2025.
Relevance Score: 5
Impacted Government Organizations
- Office of Management and Budget (OMB): The order explicitly safeguards the functions of the OMB concerning budgetary, administrative, or legislative proposals.
- U.S. Customs and Border Protection (CBP): By modifying tariff policies and duties on goods entering the country, the order indirectly affects CBP’s role in enforcing border trade regulations.
- United States Trade Representative (USTR): As the order amends trade-related duties and tariffs, it implicates the USTR in the oversight and adjustment of trade policy with Canada.
- Department of Commerce: Highlighted by the discussion of the American automotive industry, this department is implicated in ensuring economic and national security policies that support domestic manufacturing.
Relevance Score: 2 (A moderate number of Federal Agencies are impacted by the modifications to trade and tariff policy.)
Responsible Officials
- N/A – The text does not specify any individual official or agency responsible for implementation, but rather directs that the order be implemented consistent with applicable law without naming a specific entity.
Relevance Score: 1 (As no specific implementation official is identified, the directives affect only basic administrative levels.)