The White House issued Executive Order 14298 on May 12, 2025, modifying additional ad valorem duties on articles from the People’s Republic of China. The order suspends previous duty rates for an initial period of 90 days and imposes a new 10 percent additional ad valorem duty rate on imports from the PRC, including Hong Kong and Macau. The changes take effect at 12:01 a.m. eastern daylight time on May 14, 2025.
What it means
The executive order adjusts tariff structures established by earlier actions, including Executive Order 14257 from April 2, 2025, which declared a national emergency due to persistent U.S. goods trade deficits and imposed duties to address threats to national security and the economy. Subsequent orders, including Executive Order 14259 on April 8 and Executive Order 14266 on April 9, had amended reciprocal tariffs and updated duties on low-value imports. The order reflects discussions with the PRC to address trade reciprocity and security concerns, as well as retaliation announced by the State Council Tariff Commission of the PRC.
The order removes the modified additional ad valorem rates imposed by Executive Orders 14259 and 14266. It amends the Harmonized Tariff Schedule of the United States (HTSUS) to suspend the application of additional ad valorem duties on PRC imports for 90 days. The new 10 percent rate represents a suspension of 24 percentage points from the previous rate. Specific HTSUS headings are amended: heading 9903.01.63 and subdivision (v)(xiii)(10) of U.S. note 2 to subchapter III of chapter 99 replace “125%” with “34%” and are suspended for 90 days. Heading 9903.01.25 is amended to delete the existing article description and insert new text regarding articles from countries other than those in headings 9903.01.26–9903.01.33.
The order also adjusts duties under Executive Order 14256. The ad valorem duty rate in section 2(c)(i) is decreased from 120 percent to 54 percent. The per postal item containing goods duty of $100 in section 2(c)(ii) remains in effect. A scheduled increase to $200 per postal item, effective June 1, 2025, is removed from subdivision (w) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, which is also amended to replace “120 percent” with “54 percent.” The Secretary of Commerce, Secretary of Homeland Security, and United States Trade Representative are directed to implement the order.
Key facts
- Executive Order 14298 issued May 12, 2025
- New 10 percent additional ad valorem duty rate on PRC imports, including Hong Kong and Macau
- Suspension of previous duties for an initial period of 90 days
- Effective time: 12:01 a.m. eastern daylight time on May 14, 2025
- HTSUS heading 9903.01.63 rate changed from 125% to 34%, suspended for 90 days
- Executive Order 14256 ad valorem duty rate decreased from 120 percent to 54 percent
- $100 per postal item duty remains in effect; scheduled increase to $200 removed
- Implementation directed to Secretary of Commerce, Secretary of Homeland Security, and U.S. Trade Representative
Source: Executive Order 14298 (The White House)