Further Modifying Reciprocal Tariff Rates to Reflect Ongoing Discussions with The People’s Republic of China

8/11/2025

Executive Orders

View Original

Action Summary

Background and Context:
- Initiated under authorities including IEEPA, National Emergencies Act, and the Trade Act of 1974.
- Related to Executive Order 14257, which identified large and persistent U.S. trade deficits as a national security and economic threat.
Previous Measures:
- Executive Orders 14257, 14259, and 14266 imposed ad valorem duties on imports from the People’s Republic of China (PRC) due to lack of trade reciprocity and retaliatory measures from the PRC.
Recent Modifications:
- Executive Order 14298 (May 12, 2025) modified tariff rates by suspending previously imposed additional ad valorem duties for a period of 90 days, replacing them with new duty rates for PRC articles.
- The suspension originally set to expire on August 12, 2025, is now extended until November 10, 2025.
Purpose of the Order:
- To address national and economic security concerns amid ongoing discussions with the PRC regarding non-reciprocal trade practices.
Implementation:
- The Secretary of Commerce, Secretary of Homeland Security, and United States Trade Representative, in coordination with other key officials and agencies, are directed to implement this order.
- Agencies are authorized to amend or temporarily suspend regulations or notices to effectuate these changes.
General Provisions:
- Clarifies that the order does not impair the lawful authority or functions of executive agencies or the Director of the Office of Management and Budget.
- The order is subject to applicable law, appropriations, and does not create any enforceable rights against the United States or its agents.
- The cost for the publication of the order shall be borne by the Office of the United States Trade Representative.

Risks & Considerations

The ongoing modifications to reciprocal tariff rates with the People’s Republic of China (PRC) could impact Vanderbilt University’s international collaborations and partnerships, particularly those involving research and academic exchanges with Chinese institutions.
Changes in tariff rates may affect the cost of imported goods and materials used in university research and operations, potentially leading to increased expenses for certain projects or programs.
The uncertainty surrounding trade negotiations and tariff suspensions could create a volatile economic environment, which may influence the university’s financial planning and budgeting processes.
Vanderbilt may need to monitor the situation closely to assess any potential impacts on its supply chain, particularly for technology and equipment sourced from China.

Impacted Programs

Vanderbilt’s International Programs may need to evaluate the implications of these trade policies on student and faculty exchanges, as well as collaborative research initiatives with Chinese institutions.
The Office of Financial Affairs might need to consider potential cost increases in imported goods and adjust financial strategies accordingly to mitigate any negative impacts on the university’s budget.
Research Departments that rely on imported materials or equipment from China may need to explore alternative suppliers or adjust project timelines to accommodate potential delays or cost changes.

Financial Impact

The suspension and modification of tariff rates could lead to fluctuations in the cost of goods and services, impacting the university’s operational expenses and financial planning.
Vanderbilt may need to allocate additional resources to manage potential increases in costs associated with research materials and equipment sourced from China.
There could be opportunities for the university to engage in policy discussions or advocacy efforts related to international trade and its impact on higher education and research institutions.

Relevance Score: 3 (The executive order presents moderate risks involving compliance and potential financial impacts on university operations.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor ongoing trade discussions between the United States and the People’s Republic of China. Understanding the implications of these discussions on trade policies can help the university anticipate changes that may affect research funding, international collaborations, and supply chain logistics.
The Owen Graduate School of Management could explore opportunities to conduct research on the economic impacts of reciprocal tariff modifications. This research can provide valuable insights into how these changes affect global trade dynamics and inform strategic decisions for businesses and policymakers.
Vanderbilt’s International Student and Scholar Services should assess the potential impact of trade policy changes on international students and scholars from China. By understanding these impacts, the university can better support its international community and maintain strong global partnerships.
The Department of Political Science should analyze the broader geopolitical implications of the executive order. This analysis can contribute to academic discourse and provide a deeper understanding of the intersection between trade policies and national security concerns.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Center for International Business to engage in policy analysis and advocacy. By providing evidence-based recommendations, the center can influence how trade policies are shaped and implemented, potentially enhancing Vanderbilt’s role as a thought leader in international trade.
Vanderbilt can capitalize on the increased focus on trade reciprocity by developing new programs and partnerships with Chinese educational institutions. This could include joint research initiatives, student exchange programs, and collaborative curriculum development, enhancing Vanderbilt’s reputation and reach in the global education sector.

Relevance Score: 3 (Some adjustments are needed to processes or procedures due to potential impacts on international collaborations and research funding.)

Average Relevance Score: 3.2

Timeline for Implementation

90-day suspension originally scheduled to expire at 12:01 a.m. EDT on August 12, 2025.
Extended suspension now in effect until 12:01 a.m. EST on November 10, 2025.

The effective deadline for complying with the directives is based on the extended suspension set to expire on November 10, 2025, which is the shortest time span requiring action from the issuing date of August 11, 2025.

Relevance Score: 2

Impacted Government Organizations

Department of Commerce (Secretary of Commerce): Responsible for implementing tariff changes and overseeing modifications to the Harmonized Tariff Schedule.
Department of Homeland Security (Secretary of Homeland Security): Engaged in addressing the national security aspects associated with the economic measures.
Office of the United States Trade Representative: Charged with executing negotiations and trade policies with foreign governments, particularly with the People’s Republic of China.
Department of State (Secretary of State): Consulted on the international dimensions of trade and diplomatic responses to tariff adjustments.
Department of the Treasury (Secretary of the Treasury): Involved in ensuring financial and regulatory compliance related to trade measures.
Office of the Assistant to the President for National Security Affairs: Provides strategic advice on national security issues arising from trade policies.
Office of the Assistant to the President for Economic Policy: Advises on economic implications and helps coordinate policy adjustments stemming from the order.
Senior Counselor to the President for Trade and Manufacturing: Offers guidance on trade and manufacturing issues in light of modified tariff rates.
United States International Trade Commission: Monitors trade practices and analyzes data to assess the impact of tariff changes.
United States Postal Service (Postmaster General): Directed to take necessary actions in implementing the order’s provisions.

Relevance Score: 3 (Multiple Federal agencies across various departments are affected by the order.)

Responsible Officials

Secretary of Commerce – Charged with implementing changes to the Harmonized Tariff Schedule and any related regulatory modifications.
Secretary of Homeland Security – Responsible for implementing necessary actions as directed in this order.
United States Trade Representative – Tasked with executing trade-related directives and coordinating with other agencies.
Secretary of State – Consulted to provide diplomatic input and support on trade discussions.
Secretary of the Treasury – Consulted to ensure financial and economic implications are addressed.
Assistant to the President for National Security Affairs – Consulted for integrating national security considerations.
Assistant to the President for Economic Policy – Consulted for economic policy alignment and impact analysis.
Senior Counselor to the President for Trade and Manufacturing – Consulted for specialized input on trade and manufacturing issues.
Chair of the United States International Trade Commission – Consulted for expertise on trade regulations and dispute resolution.
Postmaster General – Consulted to manage any postal regulatory adjustments related to this order.

Relevance Score: 5 (Directives affect Cabinet officials and other high-level agencies responsible for national security and economic policies.)