Modifying Reciprocal Tariff Rates Consistent with the Economic and Trade Arrangement Between the United States and the People’s Republic of China

11/4/2025

Executive Orders

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Action Summary

Purpose: Address persistent U.S. goods trade deficits and national security concerns by modifying tariff regimes with the People’s Republic of China.
Background:
- Initiated under Executive Order 14257 due to significant trade deficits and associated threats.
- Subsequent orders (14259, 14266) raised tariffs in response to Chinese retaliation.
New Tariff Regime & Arrangement:
- Following negotiations with China and a meeting with President Xi Jinping, a historic deal—the Kuala Lumpur Joint Arrangement—was reached.
- Under the Arrangement, China commits to suspending export controls on critical materials, curtailing retaliatory actions against U.S. industries, and boosting U.S. agricultural exports.
- In return, the U.S. will suspend the heightened reciprocal tariffs until 12:01 a.m. EST on November 10, 2026, with a replacement of a 10% additional ad valorem duty during the suspension period.
Implementation & Monitoring:
- Tariff suspension implemented through specific Harmonized Tariff Schedule provisions.
- The Secretary of the Treasury, the Secretary of Commerce, and the U.S. Trade Representative, in collaboration with other relevant agencies, will monitor conditions and report regularly.
- Contingency measures include potential modifications if China fails to meet its commitments.
Delegation and Legal Provisions:
- Delegates authority to Treasury, Commerce, Homeland Security, and USTR to adopt necessary regulations or guidance.
- Order includes severability, non-waiver of agency authority, and cost provisions for publication.

Risks & Considerations

The Executive Order modifies reciprocal tariff rates with China, which may have implications for research and development projects and partnerships at Vanderbilt University, particularly those involving advanced manufacturing, technology, and agriculture. The adjustments in tariff rates could affect the cost of materials and equipment used in research.
There is a potential risk that the suspension of heightened tariffs could be temporary and subject to change if the PRC fails to uphold its commitments. This uncertainty could impact long-term strategic planning and budgeting within the university.
Given the focus on rare earth elements and critical minerals, there might be an increased interest in research and expertise in these areas. Vanderbilt could play a role in contributing expertise and innovation in the development and application of these materials.
The arrangement to expand Chinese purchases of U.S. agricultural exports may bolster the agricultural sector, which could enhance funding opportunities for related research programs at Vanderbilt.
The Executive Order underscores the importance of national security and the defense industrial base. Vanderbilt’s programs related to defense and national security studies may receive increased attention and potential funding opportunities.

Impacted Programs

Vanderbilt School of Engineering might see changes in research funding and collaboration opportunities related to semiconductor manufacturing and trade policy impacts.
Vanderbilt Law School could offer insights and develop expertise in international trade law, given the legal complexities involved in trade agreements and tariffs.
Vanderbilt Institute for Energy and Environment may find new research avenues related to securing critical minerals vital to energy and national defense sectors.
The Department of Earth and Environmental Sciences could expand its focus on rare earth elements and critical mineral research, aligning with national interest and potential funding sources.
Vanderbilt’s Agricultural Economics Program could benefit from increased focus on agricultural exports and trade dynamics, potentially leading to new research and funding opportunities.

Financial Impact

The reduction in tariffs may lower costs for imported research materials and equipment, potentially benefiting the university’s operational budget and research funding allocations.
Changes in agricultural trade policies could lead to increased funding opportunities for Vanderbilt’s agricultural and environmental research programs, enhancing their financial sustainability and growth potential.
Should the arrangement lead to economic growth and stability, Vanderbilt may experience positive impacts on endowment performance and fundraising efforts, as broader economic health often correlates with philanthropic giving.
If tariffs are reinstated due to noncompliance, Vanderbilt may need to adjust budgets rapidly to accommodate increased costs for imported goods and services, impacting financial planning and resource allocation.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential strategic adjustments.)

Key Actions

Vanderbilt’s Department of Economics should conduct an analysis on the potential impacts of the Kuala Lumpur Joint Arrangement, focusing on trade relations with China. Understanding these economic shifts could help inform Vanderbilt’s research priorities and collaborations with international partners.
The Office of Federal Relations should closely monitor updates from the Secretary of the Treasury and the United States Trade Representative regarding the implementation of the PRC’s commitments. This could present opportunities for receiving federal funding or aid if the university aligns its initiatives with national economic priorities.
Vanderbilt’s School of Engineering may explore partnerships with semiconductor manufacturers affected by the PRC’s commitments to address retaliatory actions. This could enhance research opportunities and student internships in cutting-edge technological fields.
The Agricultural Research and Extension Program should assess the implications of increased U.S. agricultural exports to China. This might lead to new research funding opportunities or partnerships that could enhance the university’s profile in agricultural sciences.

Opportunities

The order’s emphasis on strengthening the manufacturing and defense industrial base of the United States provides an opportunity for Vanderbilt’s School of Engineering to participate in federally supported research and development projects, potentially securing grants and enhancing its contribution to national defense technologies.
Vanderbilt can capitalize on the increased focus on agricultural exports by expanding its initiatives related to agricultural research, which could involve collaborative projects with businesses and governmental agencies, thereby increasing its influence and funding in this sector.
The commitment to postpone and eliminate global export controls on rare earth elements and other critical minerals can serve as a basis for Vanderbilt’s Science and Technology Centers to pursue innovative research in material sciences, with potential funding from federal agencies keen on supporting advancements in this area.

Relevance Score: 3 (The order presents opportunities for some adjustments in processes and collaborations, particularly in research and international partnerships.)

Average Relevance Score: 2.8

Timeline for Implementation

Suspension of heightened reciprocal tariffs is to remain in effect until 12:01 a.m. EST on November 10, 2026.

Relevance Score: 1

Impacted Government Organizations

Department of the Treasury: Responsible for monitoring economic conditions, overseeing tariff suspensions and modifications, and updating the President on trade deficit conditions and the implementation of the PRC’s commitments.
Department of Commerce: Tasked with monitoring U.S. trade conditions, contributing to the analysis of the national emergency related to trade deficits, and providing updates on trade policies.
United States Trade Representative (USTR): Charged with overseeing trade negotiations, monitoring the PRC’s implementation of commitments under the Arrangement, and advising on trade-related national security concerns.
Department of State: Consulted for its expertise in international relations and trade diplomacy, especially concerning the arrangements with the People’s Republic of China.
Department of Homeland Security: Involved in the monitoring process to ensure that national security is not compromised amid the adjustments to trade policies.
Office of Management and Budget (OMB): Its role is protected under general provisions to ensure continuity in budgetary and administrative processes relevant to the implementation of this order.

Relevance Score: 3 (Six key Federal Agencies are impacted by the order.)

Responsible Officials

Secretary of the Treasury – Charged with monitoring trade deficits, updating the President on economic conditions, and ensuring the suspension of heightened reciprocal tariffs is implemented effectively.
Secretary of Commerce – Tasked with monitoring relevant trade conditions and advising on economic policy as part of the oversight of tariff implementations.
United States Trade Representative – Responsible for coordinating trade negotiations with the People’s Republic of China, monitoring the implementation of the PRC’s commitments under the Arrangement, and updating the President on progress.
Secretary of Homeland Security – Authorized, along with other officials, to take necessary actions and adopt rules or regulations to effectuate this order.

Relevance Score: 4 (Directives affect agency heads responsible for national trade and security policies.)