Further Modifying the Reciprocal Tariff Rates
1. Purpose
Executive Order 14326 aims to address U.S. trade deficits by modifying tariff rates on goods from certain trading partners, amidst a declared national emergency.
2. Key Actions And Directives
- Tariff Modifications: Adjusts duties in the Harmonized Tariff Schedule of the United States (HTSUS) as outlined in Annex II, effective 7 days post-order.
- Duty Exemption for Transit Goods: Goods already in transit before new duties are imposed will not incur additional charges.
- Ad Valorem Duties for Non-listed Partners: Goods from unlisted foreign trading partners will incur an extra 10% ad valorem duty.
- Penalties for Evasion: Transshipped goods attempting to evade duties will attract a 40% additional duty and potential fines.
3. Important Points
- Trade Deficit Addressed: Targets large and persistent U.S. goods trade deficits as declared in previous executive orders.
- Legal Authorities Cited: Cites legal frameworks including the International Emergency Economic Powers Act and the National Emergencies Act as authority for actions.
- Enforcement Limitations: Order does not create enforceable rights against the United States or its entities.
- Implementation Responsibility: Delegates implementation responsibilities to the Secretary of Commerce, Secretary of Homeland Security, and U.S. Trade Representative.
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