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11 November 2025

United States Begins Implementing U.S.-China Trade Arrangement, Lowers Fentanyl-Related Tariffs And Delays Reciprocal Tariff Rate Hike

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Kelley Drye & Warren LLP

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On November 4, 2025, President Trump issued two Executive Orders to carry out U.S. commitments pursuant to a trade arrangement reached October 30 with the People's Republic of China (PRC).
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On November 4, 2025, President Trump issued two Executive Orders to carry out U.S. commitments pursuant to a trade arrangement reached October 30 with the People's Republic of China (PRC). Together, the orders (1) reduce by half the fentanyl-related IEEPA tariffs on imports from China; and (2) extend for one year the pause on implementation of China's higher IEEPA Reciprocal Tariff rate.

The order Modifying Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China reduces from 20% to 10% the fentanyl-related IEEPA tariffs first imposed on Chinese imports into the United States in February 2025 (the tariffs were initially imposed at a rate of 10% before President Trump doubled them a month later). The reduced rate of 10% is effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on November 10, 2025.

The order Modifying Reciprocal Tariff Rates Consistent with the Economic and Trade Arrangement Between the United States and the People's Republic of China further suspends for one year the scheduled increase in China's Reciprocal Tariff rate from 10% to 34%. The United States will maintain the current 10% Reciprocal Tariff rate until 12:01 a.m. EST on November 10, 2026.

Both orders direct the President's trade and economic team to monitor conditions and developments and provide that the President may modify the orders – and, thus, the tariff rates – as necessary should the PRC fail to implement its commitments.

Under the bilateral arrangement, the United States has also agreed to: extend until November 10, 2026, certain Section 301 tariff exclusions previously set to expire on November 29, 2025; suspend until November 10, 2026, the implementation of the U.S. Commerce Department Bureau of Industry and Security's interim final rule titled Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities (the so-called "Affiliates Rule," which we have previously written about here ); and suspend until November 10, 2026, the implementation of its remedy in response to the Section 301 investigation on China's Targeting the Maritime, Logistics, and Shipbuilding Sectors for Dominance. We are awaiting formal notice and implementation of these commitments.

For its part, the PRC has committed to a number of actions including, but not limited to: stopping the flow of fentanyl precursors into the United States; eliminating global export controls on rare earth elements and other critical minerals; suspending or removing many retaliatory tariffs and non-tariff countermeasures taken against the United States; removing measures imposed in retaliation for the U.S. Section 301 shipbuilding remedy; and purchasing U.S. soybeans and other agricultural exports.

Additional details can be found in the Fact Sheet published by the White House on November 1, 2025.

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