Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China
Signed: March 3, 2025
Published: March 7, 2025
Document Number: 2025-03775
đSummary
This executive order increases the U.S. tariff rate on covered goods that are products of the Peopleâs Republic of China from 10% to 20%, as part of efforts to address the synthetic opioid (including fentanyl) supply chain affecting the United States. It affects importers, businesses, and consumers involved with or purchasing the covered China-made products, as well as federal agencies that administer and collect tariffs at the border. The key change it mandates is a single update to the earlier order: raising the ad valorem duty rate to 20% because the U.S. government determined China has not taken adequate steps to reduce the illicit drug crisis and the situation has not improved. It also states that agencies must carry it out under existing law and available funding, and that it does not create new legal rights for private parties.
đźBusiness Impact
This order doubles the ad valorem tariff on covered products of China from 10% to 20%, hitting businesses that import China-origin goodsâespecially manufacturers, wholesalers, retailers/eâcommerce sellers, and any sector with China-heavy inputs (electronics, machinery, chemicals/pharma intermediates, consumer goods). Companies will need to reassess landed cost and customs compliance (correct country-of-origin and tariff classification, documentation, and broker instructions) and may find opportunities in shifting sourcing to nonâPRC suppliers, renegotiating Incoterms/pricing, or qualifying products for nonâPRC origin through supply-chain redesign. Immediate actions: identify all SKUs/components subject to the PRC duties, model margin/price impacts and update quotes/contracts, and accelerate contingency sourcing (dual-source, nearshore, or inventory pullâforward) while tightening import controls to avoid misclassification or origin errors that can trigger penalties.
Full Text
Executive Order 14228 of March 3, 2025
Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
Section 1 . Background. With Executive Order 14195 of February 1, 2025 (Imposing Duties to Address the Synthetic Opioid Supply Chain in the People's Republic of China), I determined that the failure of the Government of the People's Republic of China (PRC) to act to blunt the sustained influx of synthetic opioids, including fentanyl, flowing from the PRC to the United States constituted an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States. To address that threat, I invoked my authority under section 1702(a)(1)(B) of IEEPA to impose ad valorem tariffs on articles that are products of the PRC, as defined by the Federal Register notice described in section 2(d) of Executive Order 14195, as amended by Executive Order 14200 of February 5, 2025 (Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China).
Pursuant to section 3 of Executive Order 14195, I have determined that the PRC has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions, and that the crisis described in Executive Order 14195 has not abated.
Sec. 2 . Amendment. In recognition of the fact that the PRC has not taken adequate steps to alleviate the illicit drug crisis, section 2(a) of Executive Order 14195 is hereby amended by striking the words “10 percent” and inserting in lieu thereof the words “20 percent”.
Sec. 3 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 11464)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 3, 2025.