U.S. Tariffs on Imports from China and China Retaliatory Responses, February 2025

On February 1, 2025, U.S. President Donald J. Trump signed executive orders calling for an increase in the ad valorem rates of duties on imports of most products from China, Canada, and Mexico based on national security and public health concerns. The legal basis for the orders is the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), Section 604 of the Trade Act of 1974, and Title 3, Section 301, of the United States Code.

The tariffs on imports from China (including products of Hong Kong) became effective at 12:01 a.m. Eastern Standard Time on February 4, 2025, while the tariffs on imports from Canada and Mexico currently are to become effective on March 4.

The government of the People’s Republic of China (PRC) responded to the U.S. tariffs with several retaliatory measures, including additional tariffs on imports of selected U.S.-origin items and new restrictions on exports of certain critical metals and related technologies and information used in the development of advanced technology and military products.

It is important for companies and individuals in the U.S. and China who may be affected by these policies to understand the products to which the new tariffs and other restrictions apply, the duty rates, and the specific conditions of the trade rules.

U.S. Tariffs on Imports from China

The President issued Executive Order 14195 “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China” on February 1, 2025. The order declared and reiterated a national emergency under the NEA and IEEPA in response to illicit trafficking of fentanyl and other synthetic opioids into the U.S. and the failure of the PRC government “to arrest, seize, detain, or otherwise intercept chemical precursor suppliers, money launderers, other [transnational criminal organizations], criminals at large, and drugs.” The President invoked his authority under Section 1702(a)(1)(B) of IEEPA to impose ad valorem tariffs on articles that are products of the PRC.

Terms of the Executive Order

The executive order imposes a 10% ad valorem rate of duty (in addition to any other duties, fees, exactions, or charges) on all articles that are products of the PRC, as defined by a Federal Register notice, with some exceptions.

The 10% duty rate applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on February 4, 2025. Goods entered for consumption are goods imported to the U.S. for commercial, business, or personal use that go directly into U.S. commerce without any time or use restrictions. Goods withdrawn from warehouse for consumption are items imported to the U.S. and placed, without payment of duties at that time, in a bonded warehouse for purposes such as storage, repacking, or sorting and which are later withdrawn from the warehouse for use.

Goods entered for consumption or withdrawn from warehouse for consumption that were loaded onto a vessel at the port of loading or were in transit on the final mode of transport prior to entry into the U.S. before 12:01 a.m. Eastern Time on February 1, 2025, are not subject to the additional duty if the importer certifies to U.S. Customs and Border Protection (CBP) in the manner specified in the Federal Register notice.

The executive order also stated that:

• The U.S. Secretary of Homeland Security would identify in the Federal Register notice the necessary modifications to the Harmonized Tariff Schedule of the United States (HTSUS), which lays out the tariff rates and statistical categories for all goods imported to the U.S.

• PRC products (except for those eligible for admission under “domestic status”) that are subject to the duties and are admitted to a U.S. foreign trade zone on or after 12:01 a.m. Eastern Time on February 4, 2025, must be admitted to the zone as “privileged foreign status” goods. Upon their entry for consumption, the items will be subject to the duty rates that applied at the time of their admission to the foreign trade zone.

• No drawback will be available with respect to the new duties. Drawback is the refund of certain duties, taxes, and fees for some imported goods that are later exported or destroyed.

• Duty-free de minimis treatment (which applies to certain low-value shipments generally imported to the U.S. directly by consumers) will not be available for items subject to the duties. [Please note, however, that duty-free de minimis treatment for otherwise eligible covered items was temporarily reinstated by Executive Order 14200 of February 5, 2025. According to that executive order, duty-free de minimis treatment will no longer be available for those items upon notification by the Secretary of Commerce to the President that “adequate systems are in place to fully and expediently process and collect tariff revenue” on the items.]

Items in transactions that IEEPA does not authorize the President to regulate or prohibit are excluded from the duties. These include:

• Donations of articles such as food, clothing, and medicine that are intended to be used for the relief of human suffering, except in certain cases specified by U.S. law;

• Information or informational materials such as publications, films, posters, photographs, and artworks, except for those subject to certain security-oriented controls; and

• Baggage accompanying travelers for their personal use.

The CBP Federal Register Notice

The CBP Notice on “Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s February 1, 2025 Executive Order Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China” was published in the Federal Register on February 5, 2025. The notice identifies the specific changes to the HTSUS necessary to implement the executive order. The notice modifies Subchapter III of Chapter 99 of the HTSUS, effective as of 12:01 a.m. Eastern Standard Time on February 4, 2025. The notice applies to articles that are products of China, including products of Hong Kong. CBP subsequently amended this notice to reinstate de minimis treatment temporarily for eligible goods. The amended notice was published in the Federal Register on February 12, 2025.

The notice establishes four new HTSUS headings.

9903.01.20 “Except for products described in headings 9903.01.21, 9903.01.22, or 9903.01.23 articles the product of China and Hong Kong, as provided for in U.S. note 2(s) to this subchapter.” This heading applies to the goods subject to the new 10% ad valorem duty rate. According to note 2(s), this heading does not apply to items described in the new headings 9903.01.21, 9903.01.22, or 9903.01.23 or to products for personal use included in accompanied baggage of persons arriving in the U.S. Items in 9903.01.20 are also subject to the general duty rates that apply to products of China and Hong Kong that are entered under subheadings in Chapters 1 to 97 of the HTSUS. Products of China and Hong Kong in 9903.01.20 that are eligible for the de minimis exemption continue to qualify for the exemption, but the de minimis exemption will cease to be available once the Secretary of Commerce notifies the President that adequate systems are in place “to fully and expediently process and collect tariff revenue applicable” for the covered articles. Note 2(s) contains additional language that may affect some importers’ products.

9903.01.21 “Articles the product of China and Hong Kong that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, as provided for in U.S. note 2(t) to this subchapter.” This heading applies to certain items that are exempted from the new duty rates, except in circumstances described in note 2(t). The importer must declare the goods under the heading 9903.01.21 to qualify for the exemption.

9903.01.22 “Articles the product of China and Hong Kong that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.” This heading applies to certain items that are exempted from the new duty rates. The importer must declare the goods under the heading 9903.01.22 to qualify for the exemption.

9903.01.23 “Except for products described in headings 9903.01.21 and 9903.01.22, and other than products for personal use included in accompanied baggage of persons arriving in the United States, articles the product of China and Hong Kong that: (1) were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the United States, before 12:01 a.m. eastern standard time on February 1, 2025; and (23) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 4, 2025, and before 12:01 a.m. eastern standard time on March 7, 2025.” The importer may certify to CBP that these items are not subject to the additional duty by declaring the goods under the heading 9903.01.23.

PRC Responses to U.S. Tariffs

The PRC government responded to the U.S. tariffs in multiple ways, including by applying new duties to imports of selected U.S. products, tightening controls on exports of certain critical metals, and adding U.S. companies to the PRC’s Unreliable Entity List.

Tariffs on Imports from the U.S.

On February 4, 2025, the State Council Tariff Commission issued Announcement No. 1 of 2025 “Announcement of the State Council Tariff Commission on Imposing Additional Tariffs on Some Imported Goods Originating from the United States.” The announcement came in response to the U.S. imposition of tariffs, which the announcement characterized as “seriously violat[ing] the rules of the World Trade Organization” and “undermin[ing] the normal and economic trade cooperation between China and the U.S.”

In the announcement, the State Council imposed the following tariffs on imports of specified U.S.-origin goods, effective February 10, 2025:

• A 15% tariff on imports of coal and liquefied natural gas (LNG); and

• A 10% tariff on imports of crude oil, agricultural machinery, large-displacement cars, and pickup trucks.

According to the announcement, the PRC General Administration of Customs (GAC) will levy the tariffs on the basis of the current applicable tariff rates, current bonded and tax reduction and exemption policies remain unchanged, and the additional tariffs will not be reduced or exempted.

Annex 1 to the announcement identifies the specific goods subject to the 15% additional tariff and their tariff codes in the Tariff Code of the PRC (2025):

• 2701.11.00 Unformed anthracite;

• 2701.12.10 Coking coal;

• 2701.12.90 Unformed other bituminous coal;

• 2701.19.00 Unformed other coal;

• 2701.20.00 Briquettes, briquettes and similar solid fuels made from coal;

• 2702.10.00 Unformed lignite;

• 2702.20.00 Formed lignite; and

• 2711.11.00 Liquefied natural gas.

Annex 2 identifies the specific goods subject to the 10% additional tariff and their tariff codes:

• 2709.00.00 Crude oil;

• 8419.33.10 Frozen or spray agricultural product dryers;

• 8419.34.00 Dryers for agricultural products, except frozen and spray types;

• 8424.41.00 Portable sprayers for agriculture or gardening;

• 8424.49.00 Other sprayers for agriculture or gardening;

• 8424.82.00 Other sprayers or spreaders for agriculture or gardening;

• 8432.10.00 Plows;

• 8432.21.00 Disc harrows;

• 8432.29.00 Other tillage machines such as harrows and tillers;

• 8432.31.11 No-till grain planters;

• 8432.31.19 Other no-till direct planters;

• 8432.31.21 No-till potato planters;

• 8432.31.29 Other no-till direct planting machines;

• 8432.31.31 No-till rice transplanting machines;

• 8432.31.39 Other no-till direct transplanting machines;

• 8432.39.11 Other grain planters;

• 8432.39.19 Other planters;

• 8432.39.21 Other potato planters;

• 8432.39.29 Other planters;

• 8432.39.31 Other rice transplanters;

• 8432.39.39 Other transplanters;

• 8432.41.00 Manure applicators;

• 8432.42.00 Fertilizer applicators;

• 8432.80.10 Lawn and sports field rollers;

• 8432.80.90 Other unlisted land preparation or tillage machinery;

• 8433.11.00 Motorized rotary mowers;

• 8433.19.00 Other mowers for lawns, parks, etc.;

• 8433.20.00 Other mowers;

• 8433.30.00 Other hay cutting and drying machines;

• 8433.40.00 Hay balers;

• 8433.51.00 Combine harvesters;

• 8433.52.00 Other threshers;

• 8433.53.00 Root or tuber harvesters;

• 8433.59.10 Sugarcane harvesters;

• 8433.59.90 Other harvesters;

• 8433.60.10 Egg cleaning, sorting and grading machines;

• 8433.60.90 Fruit or other agricultural product cleaning, sorting and grading machines;

• 8434.10.00 Milking machines;

• 8436.10.00 Animal feed preparation machines;

• 8436.21.00 Poultry incubators and brooders;

• 8436.29.00 Poultry feeding machines;

• 8436.80.00 Other machines for agriculture, forestry, horticulture, etc.;

• 8437.10.10 Optical color difference grain particle sorting machine (color sorter);

• 8437.10.90 Other machines for cleaning, sorting or grading crops;

• 8437.80.00 Grain milling machines;

• 8438.60.00 Machines for processing fruits, nuts or vegetables;

• 8479.20.00 Machines for extracting and processing animal fats, vegetable fixed fats or microbial fats;

• 8701.10.00 Single-axle tractors;

• 8701.30.00 Crawler tractors and tractors;

• 8701.91.10 Tractors with power ≤ 18 kW;

• 8701.92.10 Tractors with power > 18 kW but ≤ 37 kW;

• 8701.93.10 Tractors with power > 37 kW but ≤ 75 kW;

• 8701.94.10 Tractors with power > 75 kW ≤ 130 kW;

• 8701.95.10 Tractors with power > 130 kW;

• 8703.23.61 Passenger cars equipped with spark ignition engines only, 2.5L < displacement ≤3L;

• 8703.23.62 Off-road vehicles equipped with spark ignition engines only, 2.5L < displacement ≤ 3L;

• 8703.23.63 Small buses equipped with spark ignition engines only, 2.5L < displacement ≤ 3L;

• 8703.23.69 Other vehicles equipped with spark ignition engines only, 2.5L < displacement ≤ 3L;

• 8703.24.11 Passenger cars equipped with spark ignition engines only, 3L < displacement ≤ 4L;

• 8703.24.12 Off-road vehicles equipped with spark ignition engines only, 3L < displacement ≤ 4L;

• 8703.24.13 Small buses equipped with spark ignition engines only, 3L < displacement ≤ 4L;

• 8703.24.19 Other vehicles equipped with spark ignition engines only, 3L < displacement ≤ 4L;

• 8703.24.21 Passenger cars equipped with spark ignition engines only, with a displacement of > 4L;

• 8703.24.22 Off-road vehicles equipped with spark ignition engines only, with a displacement of > 4L;

• 8703.24.23 Small buses equipped with spark ignition engines only, with a displacement of > 4L;

• 8703.24.29 Other vehicles equipped with only spark ignition engines, with a displacement of > 4L;

• 8704.21.00 Trucks equipped with only compression ignition engines, with a vehicle weight of ≤ 5 tons;

• 8704.31.00 Trucks equipped with only spark ignition engines, with a vehicle weight of ≤ 5 tons;

• 8704.41.00 Hybrid trucks equipped with compression ignition engines, with a vehicle weight of ≤ 5 tons;

• 8704.51.00 Hybrid trucks equipped with spark ignition engines, with a vehicle weight of ≤ 5 tons;

• 8704.60.00 Pure electric trucks; and

• 8716.20.00 Agricultural self-loading or dump trailers and semi-trailers.

Critical Metal Export Restrictions

On February 4, 2025, the PRC government issued Announcement No. 10 of 2025 of the Ministry of Commerce (MOFCOM) and the GAC on the “Decision to Implement Export Control on Items Related to Tungsten, Tellurium, Bismuth, Molybdenum and Indium.” In the announcement, the MOFCOM Bureau of Industrial Security and Import and Export Control imposed export licensing requirements on certain items, in accordance with the PRC Export Control Law and Regulations on Export Control of Dual-Use Items. The export licensing requirements, effective as of the date of publication (February 4, 2025), apply to the following items:

Tungsten-related items:

1C117.d. Tungsten-related materials:

• 1. Ammonium paratungstate (reference customs commodity number: 2818.01.00)

• 2. Tungsten oxide (reference customs commodity numbers: 2825.90.12.00, 2825.90.19.10, 2825.90.19.20)

• 3. Tungsten carbide not controlled under 1C226 (reference customs commodity number: 2849.90.20.00)

1C117.c. Tungsten in a solid state, having all of the following:

• 1. Solid tungsten (excluding particles and powder) having any of the following characteristics:

  • a. Tungsten and tungsten alloys with a tungsten content of 97% or more (by weight) not controlled under 1C226 or 1C241 (reference customs commodity numbers: 8101.94.00.01, 8101.99.10.01, 8101.99.90.01)

  • b. Tungsten doped with copper with a tungsten content of 80% or more (by weight) (reference customs commodity numbers: 8101.94.00.01, 8101.99.10.01, 8101.99.90.01)

  • c. Tungsten doped with silver (silver content is greater than or equal to 2%) with a tungsten content greater than or equal to 80% (by weight) (reference customs commodity numbers: 7106.91.90.01, 7106.92.90.01)

• 2. Can be machined into any of the following products

  • a. Cylinders with a diameter greater than or equal to 120 mm and a length greater than or equal to 50 mm

  • b. Pipes with an inner diameter greater than or equal to 65 mm, a wall thickness greater than or equal to 25 mm, and a length greater than or equal to 50 mm

  • c. Blocks with a size greater than or equal to 120 mm x 120 mm x 50 mm

1C004 Tungsten-nickel-iron alloys (reference customs commodity numbers: 8101.94.00.01, 8101.99.10.01, 8101.99.90.01) or tungsten-nickel-copper alloys (reference customs commodity numbers: 8101.94.00.01, 8101.99.10.01, 8101.99.90.01) having all of the following characteristics:

• a. Density greater than 17.5 g/cm3

• b. Elastic limit exceeds 800 MPa

• c. The ultimate tensile strength is greater than 1270 MPa

• d. The elongation exceeds 8%

1E004, 1E101.b. Technology and information (including process specifications, process parameters, processing procedures, etc.) for the production of items 1C004, 1C117.c., and 1C117.d.

Tellurium-related items:

6C002.a. Tellurium metal (reference customs commodity number: 2804.50.00.01)

6C002.b. Tellurium compound single crystal or polycrystalline products (including substrates or epitaxial wafers) of any of the following:

• 1. Cadmium telluride (reference customs commodity numbers: 2842.90.20.00, 3818.00.90.21)

• 2. Cadmium zinc telluride (reference customs commodity numbers: 2842.90.90.25, 3818.00.90.21)

• 3. Mercury cadmium telluride (reference customs commodity numbers: 2852.10.00.10, 3818.00.90.21)

6E002 Technology and information for the production of item 6C002 (including process specifications, process parameters, processing procedures, etc.)

Bismuth-related items:

6C001.a. Bismuth metal and its products not controlled under 1C229, including but not limited to ingots, blocks, beads, granules, powders and other forms (reference customs commodity numbers: 8106.10.10.91, 8106.10.10.92, 8106.10.10.99, 8106.10.90.90, 8106.90.10.19, 8106.90.10.29, 8106.90.10.99, 8106.90.90.90)

6C001.b. Bismuth germanate (reference customs commodity number: 2841.90.00.41)

6C001.c. Triphenylbismuth (reference customs commodity number: 2931.90.00.32)

6C001.d. Tri-p-ethoxyphenylbismuth (reference customs commodity number: 2931.90.00.32)

6E001 Technology and information for the production of item 6C001 (including process specifications, process parameters, processing procedures, etc.)

Molybdenum-related items:

1C117.b. Molybdenum powder: Molybdenum and alloy particles with a molybdenum content (by weight) greater than or equal to 97% and a particle size less than or equal to 50 x 10^-6 m (μm) for the manufacture of missile components (reference customs commodity number: 8102.10.00.01)

1E101.b. Technology and information for the production of 1C117.b. (including process specifications, process parameters, processing procedures, etc.)

Indium-related items:

3C004.a. Indium phosphide (reference customs commodity number: 2853.90.40.51)

3C004.b. Trimethylindium (reference customs commodity number: 2931.90.00.32)

3C004.c. Triethylindium (reference customs commodity number: 2931.90.00.32)

3E004 Technology and information for the production of item 3C004 (including process specifications, process parameters, processing procedures etc.)

Addition of U.S. Companies to the Unreliable Entity List

Also on February 4, 2025, the PRC government issued Working Mechanism of the Unreliable Entity List Announcement No. 4 of 2025 “Announcement of the Working Mechanism of the Unreliable Entity List on the Inclusion of PVH Group and Illumina Inc. of the United States in the Unreliable Entity List.”

According to MOFCOM Order No. 4 of 2020, which contains the “Provisions on the Unreliable Entity List,” the Working Mechanism (composed of MOFCOM and other agencies) may take action against behaviors of foreign entities added to the list that the PRC government finds to endanger China’s national sovereignty, security, or development interests, violate normal market transaction principles, interrupt normal transactions with Chinese enterprises, other organizations, or individuals, or take discriminatory measures against Chinese enterprises, other organizations, or individuals.

The Working Mechanism may take a variety of “handling measures” with respect to foreign entities on the Unreliable Entity List, including: restricting or prohibiting them from engaging in import or export activities related to China; restricting or prohibiting their investment in China; restricting or prohibiting the entry of relevant personnel and transportation vehicles; restricting or canceling the work, stay, or residence permits of their personnel in China; and imposing a fine according to the severity of the circumstances.

Persons Affected and SECURUS Services

These policies are relevant to a wide range of persons, including:

• Companies in the U.S. that rely on Chinese suppliers for materials, parts, components, and other goods;

• Companies in the U.S. that depend specifically on Chinese suppliers for tungsten, molybdenum, and other critical metal inputs, particularly in the medical, electronics, aerospace, semiconductor, ceramics, rubber, and arms industries;

• U.S. exporters to China and PRC importers and consumers of U.S.-origin coal, LNG, crude oil, agricultural machinery, and certain vehicles; and

• Exporters in the PRC with existing or plans to develop business relationships in the U.S.

SECURUS Strategic Trade Solutions, LLC provides guidance, training, and information to companies and individuals seeking to understand and navigate international trade rules and regulations.

If you have questions about how these policies could affect your business, please contact SECURUS Strategic Trade Solutions at Info@SECURUSTrade.com for a consultation.

Author: Richard Glen Young, Richard.Young@SECURUSTrade.com, February 5, 2025, updated February 13, 2025.

Photo Credit: ABCDstock, “Aerial view of the famous container port cargo terminal scenery in Shanghai, China,” image used under license from Shutterstock.com.