[House Document 119-37]
[From the U.S. Government Publishing Office]



119th Congress, 1st Session - - - - - - - - - - - - - House Document 119-37





 
               ACTIONS TAKEN TO  DEAL WITH THE UNUSUAL AND
                EXTRAORDINARY THREAT TO THE UNITED STATES'
                ECONOMY AND  NATIONAL  SECURITY  POSED  BY
                THE UNDERLYING  CONDITIONS  OF  OUR  TRADE
                WITH FOREIGN NATIONS

                               __________


                                MESSAGE

                                  from

                    THE PRESIDENT OF THE UNITED STATES

                              transmitting

     DECLARING   A   NATIONAL   EMERGENCY    IN    EXECUTIVE    ORDER
      14257 OF  APRIL 2,  2025,  ARISING  FROM  NON-RECIPROCAL  TRADE
      AS    EVIDENCED    BY   LARGE   AND   PERSISTENT   ANNUA   U.S.
      GOODS  TRADE  DEFICITS,  PURSUANT TO 50 U.S.C. 1703(b);  PUBLIC
      LAW 95-223, SEC. 204(b); (91 STAT. 1627) AND 50 U.S.C. 1641(b);
      PUBLIC LAW 94-412, SEC. 401(b); (90 STAT. 1257)




                [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]




  April 8, 2025.--Message and accompanying papers referred to the Com-
   mittees on Foreign Affairs and Ways and Means,  and  ordered  to be 
   printed
     
                                  ------
                                 
                   U.S. GOVERNMENT PUBLISHING OFFICE
 
59-011                    WASHINGTON : 2025































To the Congress of the United States:
    Consistent with applicable law, including the National 
Emergencies Act (50 U.S.C. 1601 et seq.) (NEA) and the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) (IEEPA), I am providing notice of certain actions I have 
taken to deal with the unusual and extraordinary threat to the 
United States' economy and national security posed by the 
underlying conditions of our trade with foreign nations, 
including a lack of reciprocity in our bilateral trade 
relationships, disparate tariff rates and non-tariff barriers, 
and foreign economic policies that suppress domestic wages and 
consumption, as indicated by large and persistent annual U.S. 
goods trade deficits. That threat has its source in whole or 
substantial part outside the United States in the domestic 
economic policies of key trading partners and structural 
imbalances in the global trading system. In my judgment, action 
under the NEA and IEEPA is necessary and appropriate to deal 
with the unusual and extraordinary threat to the national 
security and economy of the United States.
    Executive Order 14257 of April 2, 2025 (Regulating Imports 
with a Reciprocal Tariff to Rectify Trade Practices that 
Contribute to Large and Persistent Annual United States Goods 
Trade Deficits) (the ``Executive Order''), declares a national 
emergency arising from non-reciprocal trade as evidenced by 
large and persistent annual U.S. goods trade deficits. Such 
trade deficits have led to the hollowing out of our 
manufacturing base; inhibited our ability to scale advanced 
domestic manufacturing capacity; undermined critical supply 
chains; and rendered our defense-industrial base dependent on 
foreign adversaries.
    To deal with this national emergency, I have determined 
that it is necessary and appropriate to impose additional ad 
valorem duties on imports of goods from our trading partners 
under IEEPA. The additional ad valorem duties shall be imposed 
on imports of goods from all U.S. trading partners at varying 
rates, subject to exceptions specified in the Executive Order. 
The specific foreign trading partners, and the applicable duty 
rate for each trading partner, are listed in Annexes I and III 
of the Executive Order. It is necessary to apply additional 
duties on the imports of goods from all U.S. trading partners 
to reduce the overall U.S. global goods trade deficit and 
incentivize trading partners to take significant steps to 
remedy non-reciprocal trade practices, as well as align 
sufficiently with the United States on economic and national 
security matters.
    My Administration, will continue to consult with the 
Congress on our efforts to deal with the unusual and 
extraordinary threat described in this report and the Executive 
Order. As described in the Executive Order, the United States 
Trade Representative, in consultation with the Secretary of 
State, the Secretary of the Treasury, the Secretary of 
Commerce, the Secretary of Homeland Security, the Assistant to 
the President for Economic Policy, the Senior Counselor for 
Trade and Manufacturing, and the Assistant to the President for 
National Security Affairs, is authorized to submit recurring 
and final reports to the Congress on this national emergency.
    The Executive Order further explains the circumstances that 
necessitate the exercise of authority under IEEPA and the NEA; 
why I found that those circumstances constitute an unusual and 
extraordinary threat, which has its source in whole or 
substantial part outside the United States, to the national 
security and economy of the United States; the authorities 
exercised and the actions to be taken to deal with those 
circumstances; why I determined that such actions are necessary 
to deal with those circumstances; and the foreign countries 
with respect to which such actions are to be taken and why such 
actions are to be taken with respect to those countries.
    I am enclosing a copy of the Executive Order I have issued.

                                                   Donald J. Trump.
    The White House, April 7, 2025.























                            Executive Order

                              ----------                              

   Regulating Imports With a  Reciprocal Tariff to  Rectify
    Trade Practices That Contribute to Large and Persistent
    Annual United States Goods Trade Deficits

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including the International Emergency Economic Powers Act 4c 
(50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act 
(50 U.S.C. 1601 et seq.) (NEA), section 604 of the Trade Act of 
1974, as amended (19 U.S.C. 2483), and section 301 of title 3, 
United States Code.
    I, DONALD J. TRUMP, President of the United States of 
America, find that underlying conditions, including a lack of 
reciprocity in our bilateral trade relationships, disparate 
tariff rates and non-tariff barriers, and U.S. trading 
partners' economic policies that suppress domestic wages and 
consumption, as indicated by large and persistent annual U.S. 
goods trade deficits, constitute an unusual and extraordinary 
threat to the national security and economy of the United 
States. That threat has its source in whole or substantial part 
outside the United States in the domestic economic policies of 
key trading partners and structural imbalances in the global 
trading system. I hereby declare a national emergency with 
respect to this threat.
    On January 20, 2025, I signed the America First Trade 
Policy Presidential Memorandum directing my Administration to 
investigate the causes of our country's large and persistent 
annual trade deficits in goods, including the economic and 
national security implications and risks resulting from such 
deficits, and to undertake a review of, and identify, any 
unfair trade practices by other countries. On February 13, 
2025, I signed a Presidential Memorandum entitled ``Reciprocal 
Trade and Tariffs,'' that directed further review of our 
trading partners' non-reciprocal trading practices, and noted 
the relationship between non-reciprocal practices and the trade 
deficit. On April 1, 2025, I received the final results of 
those investigations, and I am taking action today based on 
those results.
    Large and persistent annual U.S. goods trade deficits have 
led to the hollowing out of our manufacturing base; inhibited 
our ability to scale advanced domestic manufacturing capacity; 
undermined critical supply chains; and rendered our defense-
industrial base dependent on foreign adversaries. Large and 
persistent annual U.S. goods trade deficits are caused in 
substantial part by a lack of reciprocity in our bilateral 
trade relationships. This situation is evidenced by disparate 
tariff rates and non-tariff barriers that make it harder for 
U.S. manufacturers to sell their products in foreign markets. 
It is also evidenced by the economic policies of key U.S. 
trading partners insofar as they suppress domestic wages and 
consumption, and thereby demand for U.S. exports, while 
artificially increasing the competitiveness of their goods in 
global markets. These conditions have given rise to the 
national emergency that this order is intended to abate and 
resolve.
    For decades starting in 1934, U.S. trade policy has been 
organized around the principle of reciprocity. The Congress 
directed the President to secure reduced reciprocal tariff 
rates from key trading partners first through bilateral trade 
agreements and later under the auspices of the global trading 
system. Between 1934 and 1945, the executive branch negotiated 
and signed 32 bilateral reciprocal trade agreements designed to 
lower tariff rates on a reciprocal basis. After 1947 through 
1994, participating countries engaged in eight rounds of 
negotiation, which resulted in the General Agreements on 
Tariffs and Trade (GATT) and seven subsequent tariff reduction 
rounds.
    However, despite a commitment to the principle of 
reciprocity, the trading relationship between the United States 
and its trading partners has become highly unbalanced, 
particularly in recent years. The post-war international 
economic system was based upon three incorrect assumptions: 
first, that if the United States led the world in liberalizing 
tariff and non-tariff barriers the rest of the world would 
follow; second, that such liberalization would ultimately 
result in more economic convergence and increased domestic 
consumption among U.S. trading partners converging towards the 
share in the United States; and third, that as a result, the 
United States would not accrue large and persistent goods trade 
deficits.
    This framework set in motion events, agreements, and 
commitments that did not result in reciprocity or generally 
increase domestic consumption in foreign economies relative to 
domestic consumption in the United States. Those events, in 
turn, created large and persistent annual U.S. goods trade 
deficits as a feature of the global trading system.
    Put simply, while World Trade Organization (WTO) Members 
agreed to bind their tariff rates on a most-favored-nation 
(MFN) basis, and thereby provide their best tariff rates to all 
WTO Members, they did not agree to bind their tariff rates at 
similarly low levels or to apply tariff rates on a reciprocal 
basis. Consequently, according to the WTO, the United States 
has among the lowest simple average MFN tariff rates in the 
world at 3.3 percent, while many of our key trading partners 
like Brazil (11.2 percent), China (7.5 percent), the European 
Union (EU) (5 percent), India (17 percent), and Vietnam (9.4 
percent) have simple average MFN tariff rates that are 
significantly higher.
    Moreover, these average MFN tariff rates conceal much 
larger discrepancies across economies in tariff rates applied 
to particular products. For example, the United States imposes 
a 2.5 percent tariff on passenger vehicle imports (with 
internal combustion engines), while the European Union (10 
percent), India (70 percent), and China (15 percent) impose 
much higher duties on the same product. For network switches 
and routers, the United States imposes a 0 percent tariff, but 
for similar products, India (10 percent) levies a higher rate. 
Brazil (18 percent) and Indonesia (30 percent) impose a higher 
tariff on ethanol than does the United States (2.5 percent). 
For rice in the husk, the U.S. MFN tariff is 2.7 percent (ad 
valorem equivalent), while India (80 percent), Malaysia (40 
percent), and Turkey (an average of 31 percent) impose higher 
rates. Apples enter the United States duty-free, but not so in 
Turkey (60.3 percent) and India (50 percent).
    Similarly, non-tariff barriers also deprive U.S. 
manufacturers of reciprocal access to markets around the world. 
The 2025 National Trade Estimate Report on Foreign Trade 
Barriers (NTE) details a great number of non-tariff barriers to 
U.S. exports around the world on a trading-partner by trading-
partner basis. These barriers include import barriers and 
licensing restrictions; customs barriers and shortcomings in 
trade facilitation; technical barriers to trade (e.g., 
unnecessarily trade restrictive standards, conformity 
assessment procedures, or technical regulations); sanitary and 
phytosanitary measures that unnecessarily restrict trade 
without furthering safety objectives; inadequate patent, 
copyright, trade secret, and trademark regimes and inadequate 
enforcement of intellectual property rights; discriminatory 
licensing requirements or regulatory standards; barriers to 
cross-border data flows and discriminatory practices affecting 
trade in digital products; investment barriers; subsidies; 
anticompetitive practices; discrimination in favor of domestic 
state-owned enterprises, and failures by governments in 
protecting labor and environment standards; bribery; and 
corruption.
    Moreover, non-tariff barriers include the domestic economic 
policies and practices of our trading partners, including 
currency practices and value-added taxes, and their associated 
market distortions, that suppress domestic consumption and 
boost exports to the United States. This lack of reciprocity is 
apparent in the fact that the share of consumption to Gross 
Domestic Product (GDP) in the United States is about 68 
percent, but it is much lower in others like Ireland (27 
percent), Singapore (31 percent), China (39 percent), South 
Korea (49 percent), and Germany (50 percent).
    At the same time, efforts by the United States to address 
these imbalances have stalled. Trading partners have repeatedly 
blocked multilateral and plurilateral solutions, including in 
the context of new rounds of tariff negotiations and efforts to 
discipline non-tariff barriers. At the same time, with the U.S. 
economy disproportionately open to imports, U.S. trading 
partners have had few incentives to provide reciprocal 
treatment to U.S. exports in the context of bilateral trade 
negotiations.
    These structural asymmetries have driven the large and 
persistent annual U.S. goods trade deficit. Even for countries 
with which the United States may enjoy an occasional bilateral 
trade surplus, the accumulation of tariff and non-tariff 
barriers on U.S. exports may make that surplus smaller than it 
would have been without such barriers. Permitting these 
asymmetries to continue is not sustainable in today's economic 
and geopolitical environment because of the effect they have on 
U.S. domestic production. A nation's ability to produce 
domestically is the bedrock of its national and economic 
security.
    Both my first Administration in 2017, and the Biden 
Administration in 2022, recognized that increasing domestic 
manufacturing is critical to U.S. national security. According 
to 2023 United Nations data, U.S. manufacturing output as a 
share of global manufacturing output was 17.4 percent, down 
from a peak in 2001 of 28.4 percent.
    Over time, the persistent decline in U.S. manufacturing 
output has reduced U.S. manufacturing capacity. The need to 
maintain robust and resilient domestic manufacturing capacity 
is particularly acute in certain advanced industrial sectors 
like automobiles, shipbuilding, pharmaceuticals, technology 
products, machine tools, and basic and fabricated metals, 
because once competitors gain sufficient global market share in 
these sectors, U.S. production could be permanently weakened. 
It is also critical to scale manufacturing capacity in the 
defense-industrial sector so that we can manufacture the 
defense materiel and equipment necessary to protect American 
interests at home and abroad.
    In fact, because the United States has supplied so much 
military equipment to other countries, U.S. stockpiles of 
military goods are too low to be compatible with U.S. national 
defense interests. Furthermore, U.S. defense companies must 
develop new, advanced manufacturing technologies across a range 
of critical sectors including bio-manufacturing, batteries, and 
microelectronics. If the United States wishes to maintain an 
effective security umbrella to defend its citizens and 
homeland, as well as for its allies and partners, it needs to 
have a large upstream manufacturing and goods-producing 
ecosystem to manufacture these products without undue reliance 
on imports for key inputs.
    Increased reliance on foreign producers for goods also has 
compromised U.S. economic security by rendering U.S. supply 
chains vulnerable to geopolitical disruption and supply shocks. 
In recent years, the vulnerability of the U.S. economy in this 
respect was exposed both during the COVID-19 pandemic, when 
Americans had difficulty accessing essential products, as well 
as when the Houthi rebels later began attacking cargo ships in 
the Middle East.
    The decline of U.S. manufacturing capacity threatens the 
U.S. economy in other ways, including through the loss of 
manufacturing jobs. From 1997 to 2024, the United States lost 
around 5 million manufacturing jobs and experienced one of the 
largest drops in manufacturing employment in history. 
Furthermore, many manufacturing job losses were concentrated in 
specific geographical areas. In these areas, the loss of 
manufacturing jobs contributed to the decline in rates of 
family formation and to the rise of other social trends, like 
the abuse of opioids, that have imposed profound costs on the 
U.S. economy.
    The future of American competitiveness depends on reversing 
these trends. Today, manufacturing represents just 11 percent 
of U.S. gross domestic product, yet it accounts for 35 percent 
of American productivity growth and 60 percent of our exports. 
Importantly, U.S. manufacturing is the main engine of 
innovation in the United States, responsible for 55 percent of 
all patents and 70 percent of all research and development 
(R&D) spending. The fact that R&D expenditures by U.S. 
multinational enterprises in China grew at an average rate of 
13.6 percent a year between 2003 and 2017, while their R&D 
expenditures in the United States grew by an average of just 5 
percent per year during the same time period, is evidence of 
the strong link between manufacturing and innovation. 
Furthermore, every manufacturing job spurs 7 to 12 new jobs in 
other related industries, helping to build and sustain our 
economy.
    Just as a nation that does not produce manufactured 
products cannot maintain the industrial base it needs for 
national security, neither can a nation long survive if it 
cannot produce its own food. Presidential Policy Directive 21 
of February 12, 2013 (Critical Infrastructure Security and 
Resilience), designates food and agriculture as a ``critical 
infrastructure sector'' because it is one of the sectors 
considered ``so vital to the United States that [its] 
incapacity or destruction . . . would have a debilitating 
impact on security, national economic security, national public 
health or safety, or any combination of those matters.'' 
Furthermore, when I left office, the United States had a trade 
surplus in agricultural products, but today, that surplus has 
vanished. Eviscerated by a slew of new non-tariff barriers 
imposed by our trading partners, it has been replaced by a 
projected $49 billion annual agricultural trade deficit.
    For these reasons, I hereby declare and order:
    Section 1. National Emergency. As President of the United 
States, my highest duty is ensuring the national and economic 
security of the country and its citizens.
    I have declared a national emergency arising from 
conditions reflected in large and persistent annual U.S. goods 
trade deficits, which have grown by over 40 percent in the past 
5 years alone, reaching $1.2 trillion in 2024. This trade 
deficit reflects asymmetries in trade relationships that have 
contributed to the atrophy of domestic production capacity, 
especially that of the U.S. manufacturing and defense-
industrial base. These asymmetries also impact U.S. producers' 
ability to export and, consequentially, their incentive to 
produce.
    Specifically, such asymmetry includes not only non-
reciprocal differences in tariff rates among foreign trading 
partners, but also extensive use of non-tariff barriers by 
foreign trading partners, which reduce the competitiveness of 
U.S. exports while artificially enhancing the competitiveness 
of their own goods. These non-tariff barriers include technical 
barriers to trade; non-scientific sanitary and phytosanitary 
rules; inadequate intellectual property protections; suppressed 
domestic consumption (e.g., wage suppression); weak labor, 
environmental, and other regulatory standards and protections; 
and corruption. These non-tariff barriers give rise to 
significant imbalances even when the United States and a 
trading partner have comparable tariff rates.
    The cumulative effect of these imbalances has been the 
transfer of resources from domestic producers to foreign firms, 
reducing opportunities for domestic manufacturers to expand 
and, in turn, leading to lost manufacturing jobs, diminished 
manufacturing capacity, and an atrophied industrial base, 
including in the defense-industrial sector. At the same time, 
foreign firms are better positioned to scale production, 
reinvest in innovation, and compete in the global economy, to 
the detriment of U.S. economic and national security.
    The absence of sufficient domestic manufacturing capacity 
in certain critical and advanced industrial sectors--another on 
outcome of the large and persistent annual U.S. goods trade 
deficits--also compromises U.S. economic and national security 
by rendering the U.S. economy less resilient to supply chain 
disruption. Finally, the large, persistent annual U.S. goods 
trade deficits, and the concomitant loss of industrial 
capacity, have compromised military readiness; this 
vulnerability can only be redressed through swift corrective 
action to rebalance the flow of imports into the United States. 
Such impact upon military readiness and our national security 
posture is especially acute with the recent rise in armed 
conflicts abroad. I call upon the public and private sector to 
make the efforts necessary to strengthen the international 
economic position of the United States.
    Sec. 2. Reciprocal Tariff Policy. It is the policy of the 
United States to rebalance global trade flows by imposing an 
additional ad valorem duty on all imports from all trading 
partners except as otherwise provided herein. The additional ad 
valorem duty on all imports from all trading partners shall 
start at 10 percent and shortly thereafter, the additional ad 
valorem duty shall increase for trading partners enumerated in 
Annex I to this order at the rates set forth in Annex I to this 
order. These additional ad valorem duties shall apply until 
such time as I determine that the underlying conditions 
described above are satisfied, resolved, or mitigated.
    Sec. 3. Implementation. (a) Except as otherwise provided in 
this order, all articles imported into the customs territory of 
the United States shall be, consistent with law, subject to an 
additional ad valorem rate of duty of 10 percent. Such rates of 
duty shall apply with respect to goods entered for consumption, 
or withdrawn from warehouse for consumption, on or after 12:01 
a.m. eastern daylight time on April 5, 2025, except that goods 
loaded onto a vessel at the port of loading and in transit on 
the final mode of transit before 12:01 a.m. eastern daylight 
time on April 5, 2025, and entered for consumption or withdrawn 
from warehouse for consumption after 12:01 a.m. eastern 
daylight time on April 5, 2025, shall not be subject to such 
additional duty.
    Furthermore, except as otherwise provided in this order, at 
12:01 a.m. eastern daylight time on April 9, 2025, all articles 
from trading partners enumerated in Annex I to this order 
imported into the customs territory of the United States shall 
be, consistent with law, subject to the country-specific ad 
valorem rates of duty specified in Annex I to this order. Such 
rates of duty shall apply with respect to goods entered for 
consumption, or withdrawn from warehouse for consumption, on or 
after 12:01 a.m. eastern daylight time on April 9, 2025, except 
that goods loaded onto a vessel at the port of loading and in 
transit on the final mode of transit before 12:01 a.m. eastern 
daylight time on April 9, 2025, and entered for consumption or 
withdrawn from warehouse for consumption after 12:01 a.m. 
eastern daylight time on April 9, 2025, shall not be subject to 
these country-specific ad valorem rates of duty set forth in 
Annex I to this order. These country-specific ad valorem rates 
of duty shall apply to all articles imported pursuant to the 
terms of all existing U.S. trade agreements, except as provided 
below.
    (b) The following goods as set forth in Annex II to this 
order, consistent with law, shall not be subject to the ad 
valorem rates of duty under this order: (i) all articles that 
are encompassed by 50 U.S.C. 1702(b); (ii) all articles and 
derivatives of steel and aluminum subject to the duties imposed 
pursuant to section 232 of the Trade Expansion Act of 1962 and 
proclaimed in Proclamation 9704 of March 8, 2018 (Adjusting 
Imports of Aluminum Into the United States), as amended, 
Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel 
Into the United States), as amended, and Proclamation 9980 of 
January 24, 2020 (Adjusting Imports of Derivative Aluminum 
Articles and Derivative Steel Articles Into the United States), 
as amended, Proclamation 10895 of February 10, 2025 (Adjusting 
Imports of Aluminum Into the United States), and Proclamation 
10896 of February 10, 2025 (Adjusting Imports of Steel into the 
United States); (iii) all automobiles and automotive parts 
subject to the additional duties imposed pursuant to section 
232 of the Trade Expansion Act of 1962, as amended, and 
proclaimed in Proclamation 10908 of March 26, 2025 (Adjusting 
Imports of Automobiles and Automobile Parts Into the United 
States); (iv) other products enumerated in Annex II to this 
order, including copper, pharmaceuticals, semiconductors, 
lumber articles, certain critical minerals, and energy and 
energy products; (v) all articles from a trading partner 
subject to the rates set forth in Column 2 of the Harmonized 
Tariff Schedule of the United States (HTSUS); and (vi) all 
articles that may become subject to duties pursuant to future 
actions under section 232 of the Trade Expansion Act of 1962.
    (c) The rates of duty established by this order are in 
addition to any other duties, fees, taxes, exactions, or 
charges applicable to such imported articles, except as 
provided in subsections (d) and (e) of this section below.
    (d) With respect to articles from Canada, I have imposed 
additional duties on certain goods to address a national 
emergency resulting from the flow of illicit drugs across our 
northern border pursuant to Executive Order 14193 of February 
1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs 
Across Our Northern Border), as amended by Executive Order 
14197 of February 3, 2025 (Progress on the Situation at Our 
Northern Border), and Executive Order 14231 of March 2, 2025 
(Amendment to Duties To Address the Flow of Illicit Drugs 
Across Our Northern Border). With respect to articles from 
Mexico, I have imposed additional duties on certain goods to 
address a national emergency resulting from the flow of illicit 
drugs and illegal migration across our southern border pursuant 
to Executive Order 14194 of February 1, 2025 (Imposing Duties 
To Address the Situation at Our Southern Border), as amended by 
Executive Order 14198 of February 3, 2025 (Progress on the 
Situation at Our Southern Border), and Executive Order 14227 of 
March 2, 2025 (Amendment to Duties To Address the Situation at 
Our Southern Border). As a result of these border emergency 
tariff actions, all goods of Canada or Mexico under the terms 
of general note 11 to the HTSUS, including any treatment set 
forth in subchapter XXIII of chapter 98 and subchapter XXII of 
chapter 99 of the HTSUS, as related to the Agreement between 
the United States of America, United Mexican States, and Canada 
(USMCA), continue to be eligible to enter the U.S. market under 
these preferential terms. However, all goods of Canada or 
Mexico that do not qualify as originating under USMCA are 
presently subject to additional ad valorem duties of 25 
percent, with energy or energy resources and potash imported 
from Canada and not qualifying as originating under USMCA 
presently subject to the lower additional ad valorem duty of 10 
percent.
    (e) Any ad valorem rate of duty on articles imported from 
Canada or Mexico under the terms of this order shall not apply 
in addition to the ad valorem rate of duty specified by the 
existing orders described in subsection (d) of this section. If 
such orders identified in subsection (d) of this section are 
terminated or suspended, all items of Canada and Mexico that 
qualify as originating under USMCA shall not be subject to an 
additional ad valorem rate of duty, while articles not 
qualifying as originating under USMCA shall be subject to an ad 
valorem rate of duty of 12 percent. However, these ad valorem 
rates of duty on articles imported from Canada and Mexico shall 
not apply to energy or energy resources, to potash, or to an 
article eligible for duty-free treatment under USMCA that is a 
part or component of an article substantially finished in the 
United States.
    (f) More generally, the ad valorem rates of duty set forth 
in this order shall apply only to the non-U.S. content of a 
subject article, provided at least 20 percent of the value of 
the subject article is U.S. originating. For the purposes of 
this subsection, ``U.S. content'' refers to the value of an 
article attributable to the components produced entirely, or 
substantially transformed in, the United States. U.S. Customs 
and Border Protection (CBP), to the extent permitted by law, is 
authorized to require the collection of such information and 
documentation regarding an imported article, including with the 
entry filing, as is necessary to enable CBP to ascertain and 
verify the value of the U.S. content of the article, as well as 
to ascertain and verify whether an article is substantially 
finished in the United States.
    (g) Subject articles, except those eligible for admission 
under ``domestic status'' as defined in 19 CFR 146.43, which 
are subject to the duty specified in section 2 of this order 
and are admitted into a foreign trade zone on or after 12:01 
a.m. eastern daylight time on April 9, 2025, must be admitted 
as ``privileged foreign status'' as defined in 19 CFR 146.41.
    (h) Duty-free de minimis treatment under 19 U.S.C. 
1321(a)(2)(A)-(B) shall remain available for the articles 
described in subsection (a) of this section. Duty-free de 
minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall remain 
available for the articles described in subsection (a) of this 
section until notification by the Secretary of Commerce to the 
President that adequate systems are in place to fully and 
expeditiously process and collect duty revenue applicable 
pursuant to this subsection for articles otherwise eligible for 
de minimis treatment. After such notification, duty-free de 
minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall not be 
available for the articles described in subsection (a) of this 
section.
    (i) The Executive Order of April 2, 2025 (Further Amendment 
to Duties Addressing the Synthetic Opioid Supply Chain in the 
People's Republic of China as Applied to Low-Value Imports), 
regarding low-value imports from China is not affected by this 
order, and all duties and fees with respect to covered articles 
shall be collected as required and detailed therein.
    (j) To reduce the risk of transshipment and evasion, all ad 
valorem rates of duty imposed by this order or any successor 
orders with respect to articles of China shall apply equally to 
articles of both the Hong Kong Special Administrative Region 
and the Macau Special Administrative Region.
    (k) In order to establish the duty rates described in this 
order, the HTSUS is modified as set forth in the Annexes to 
this order. These modifications shall enter into effect on the 
dates set forth in the Annexes to this order.
    (l) Unless specifically noted herein, any prior 
Presidential Proclamation, Executive Order, or other 
Presidential directive or guidance related to trade with 
foreign trading partners that is inconsistent with the 
direction in this order is hereby terminated, suspended, or 
modified to the extent necessary to give full effect to this 
order.
    Sec. 4. Modification Authority. (a) The Secretary of 
Commerce and the United States Trade Representative, in 
consultation with the Secretary of State, the Secretary of the 
Treasury, the Secretary of Homeland Security, the Assistant to 
the President for Economic Policy, the Senior Counselor for 
Trade and Manufacturing, and the Assistant to the President for 
National Security Affairs, shall recommend to me additional 
action, if necessary, if this action is not effective in 
resolving the emergency conditions described above, including 
the increase in the overall trade deficit or the recent 
expansion of non-reciprocal trade arrangements by U.S. trading 
partners in a manner that threatens the economic and national 
security interests of the United States.
    (b) Should any trading partner retaliate against the United 
States in response to this action through import duties on U.S. 
exports or other measures, I may further modify the HTSUS to 
increase or expand in scope the duties imposed under this order 
to ensure the efficacy of this action.
    (c) Should any trading partner take significant steps to 
remedy non-reciprocal trade arrangements and align sufficiently 
with the United States on economic and national security 
matters, I may further modify the HTSUS to decrease or limit in 
scope the duties imposed under this order.
    (d) Should U.S. manufacturing capacity and output continue 
to worsen, I may further modify the HTSUS to increase duties 
under this order.
    Sec. 5. Implementation Authority. The Secretary of Commerce 
and the United States Trade Representative, in consultation 
with the Secretary of State, the Secretary of the Treasury, the 
Secretary of Homeland Security, the Assistant to the President 
for Economic Policy, the Senior Counselor for Trade and 
Manufacturing, the Assistant to the President for National 
Security Affairs, and the Chair of the International Trade 
Commission are hereby authorized to employ all powers granted 
to the President by IEEPA as may be necessary to implement this 
order. Each executive department and agency shall take all 
appropriate measures within its authority to implement this 
order.
    Sec. 6. Reporting Requirements. The United States Trade 
Representative, in consultation with the Secretary of State, 
the Secretary of the Treasury, the Secretary of Commerce, the 
Secretary of Homeland Security, the Assistant to the President 
for Economic Policy, the Senior Counselor for Trade and 
Manufacturing, and the Assistant to the President for National 
Security Affairs, is hereby authorized to submit recurring and 
final reports to the Congress on the national emergency 
declared in this order, consistent with section 401(c) of the 
NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 
1703(c)).
    Sec. 7. General Provisions. (a) Nothing in this order shall 
be construed to impair or otherwise affect:
          (i) the authority granted by law to an executive 
        department, agency, or the head thereof; or
          (ii) the functions of the Director of the Office of 
        Management and Budget relating to budgetary, 
        administrative, or legislative proposals.
    (b) This order shall be implemented consistent with 
applicable law and subject to the availability of 
appropriations.
    (c) This order is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law 
or in equity by any party against the United States, its 
departments, agencies, or entities, its officers, employees, or 
agents, or any other person.

                                                   Donald J. Trump.
    The White House, April 2, 2025.
    
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