Executive Order 14298 modifies earlier tariff actions against China in response to ongoing trade discussions between the United States and the People's Republic of China (PRC). The order frames these discussions as a "significant step by the PRC toward remedying non-reciprocal trade arrangements" that had prompted the national emergency declaration in Executive Order 14257 of April 2, 2025. This action represents a temporary easing of trade tensions while maintaining pressure on China to address what the administration characterizes as persistent U.S. goods trade deficits that constitute an "unusual and extraordinary threat" to U.S. national security and economy. The order acknowledges previous retaliatory measures taken by China's State Council Tariff Commission against earlier U.S. tariff actions.
The order specifically suspends for 90 days the higher tariff rates previously imposed on Chinese imports, reducing the additional ad valorem duty rate from 34% to 10% on goods from China (including Hong Kong and Macau), effective May 14, 2025. This adjustment involves technical modifications to the Harmonized Tariff Schedule of the United States (HTSUS), including amendments to heading 9903.01.25 and the reduction of duties in heading 9903.01.63 from 125% to 34%, with the latter being suspended for the 90-day period. Additionally, the order decreases the ad valorem duty rate on certain low-value imports from 120% to 54% while maintaining a per postal item duty of $100 that had been scheduled to increase to $200 on June 1, 2025.
Implementation responsibilities fall to the Secretaries of Commerce and Homeland Security and the U.S. Trade Representative, who are directed to consult with other senior officials including the Secretaries of State and Treasury, the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Senior Counselor to the President for Trade and Manufacturing. These officials are authorized to employ powers granted under the International Emergency Economic Powers Act to implement the order, including through temporary suspension or amendment of regulations. The temporary nature of these tariff reductions—specifically limited to a 90-day period—suggests the administration is using tariff policy as leverage in ongoing trade negotiations with China, with the possibility of reinstating higher rates if discussions do not yield desired outcomes by mid-August 2025.