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EO 14298Executive OrderTrump 47 · R

Executive Order 14298

Modifying Reciprocal Tariff Rates To Reflect Discussions With the People's Republic of China

This executive order temporarily reduces additional U.S. tariffs on Chinese imports from 145% to 10% for 90 days following U.S.-China trade discussions, while also lowering de minimis postal duties from 120% to 54%. The modifications take effect May 14, 2025, with certain provisions set to expire after 90 days unless extended.

Federal Register Open PDF 90 FR 21831

Impact dates

  1. 90-day suspension of modified additional ad valorem rates expires (approximate, based on 90 days from May 14, 2025)

  2. 10% additional ad valorem duty on PRC imports takes effect; HTSUS modifications effective; de minimis rate reduction to 54% effective

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Technology & softwareOther industrialAgriculturePharmaAutosSteel & aluminum

Mechanisms

TariffMinimum import price

Role pressure

  • MixedImporter — Immediate cost relief from 145% to 10% for 90 days, but cliff-edge reversion risk creates planning uncertainty; de minimis importers see rate cut but $100/item fee retained
  • MixedDownstream manufacturer — Lower input costs for 90 days improve margins, but temporary nature complicates procurement and pricing decisions; dependent on negotiation outcomes
  • ProtectiveTrading-partner exporter — PRC exporters including Hong Kong and Macau benefit from reduced U.S. tariff barrier for 90-day window, though 10% additional duty still applies
  • AdverseDomestic producer — Competing domestic manufacturers face restored price competition from Chinese imports during 90-day suspension; protected by remaining 10% additional duty and potential reversion

Geographies

USCN

Exposure dates

  • — 10% additional ad valorem duty on PRC imports takes effect; HTSUS modifications effective; de minimis rate reduction to 54% effective
  • — 90-day suspension of modified additional ad valorem rates expires (approximate, based on 90 days from May 14, 2025)

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MAAAlcoaGOOGLAlphabetAAPLAppleADMArcher Daniels MidlandBGBungeCATCaterpillarCENXCentury AluminumCLFCleveland-CliffsCTVACortevaLLYEli LillyFFordFCXFreeport-McMoRanGEVGE VernovaGMGeneral MotorsHONHoneywellHYMTFHyundai MotorQQQInvesco QQQ TrustJNJJohnson & JohnsonMRKMerckMETAMeta PlatformsMSFTMicrosoftNVSNovartisNUENucor

Confidence: high · Policy alerts

Key directives

  • Suspend for 90 days application of additional ad valorem duties on PRC imports imposed under EO 14257/14259/14266, reducing effective additional rate to 10% effective May 14, 2025
  • Remove modified additional ad valorem rates imposed by EO 14259 and EO 14266
  • Amend HTSUS heading 9903.01.25 to revise article description
  • Amend HTSUS heading 9903.01.63 and U.S. note 2 subdivision (v)(xiii)(10) by replacing '125%' with '34%', then suspend both for 90 days
  • Decrease de minimis ad valorem rate from 120% to 54% in EO 14256 section 2(c)(i)
  • Retain $100 per postal item duty and remove scheduled June 1, 2025 increase to $200
  • Modify HTSUS subdivision (w) of U.S. note 2 to subchapter III of chapter 99 to reflect 54% rate and delete June 1, 2025 escalation language
  • Direct Secretaries of Commerce, Homeland Security, and USTR to implement with interagency consultation

Who is ordered

Timeline

Immediate

  • 10% additional ad valorem duty takes effect May 14, 2025 at 12:01 a.m. EDT
  • de minimis rate drops from 120% to 54% effective May 14, 2025
  • $100 per postal item duty retained, June 1 increase to $200 removed

Near term (90d)

  • 90-day suspension period runs through approximately August 12, 2025
  • agencies must implement HTSUS modifications and regulatory changes
  • ongoing U.S.-China discussions expected to continue

Long term

  • Potential reversion to higher tariff rates after 90-day suspension expires
  • possible further modifications based on trade negotiation outcomes
  • structural uncertainty for supply chain planning dependent on bilateral talks

Risks & tensions

  • Temporary 90-day nature creates cliff-edge uncertainty for importers and supply chain planners
  • 34% rate retained in HTSUS amendments but suspended; reversion risk if talks fail
  • De minimis postal provision retains $100/item but removes scheduled escalation, creating ambiguity about future treatment
  • PRC 'intentions' language is aspirational; actual compliance and remedy steps not specified
  • Interagency implementation burden with multiple cabinet secretaries required to coordinate rapidly
Executive Order 14298: Modifying Reciprocal Tariff Rates To Reflect Discussions With the People's Republic of China · Executive Orders