Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment

The order directs Federal agencies to modify reciprocal tariff rates in response to trading partner retaliation and alignment. If a trading partner retaliates against the U.S. through import duties on U.S. exports or other measures, the Harmonized Tariff Schedule of the United States (HTSUS) may be modified to increase or expand the duties imposed. Conversely, if a trading partner takes significant steps to remedy non-reciprocal trade arrangements and align with the U.S. on economic and national security matters, the HTSUS may be modified to decrease or limit the duties imposed. The order modifies the rate paid by China to 125%. The _de minimus rate, for small shipments, is modified from 90% to 120%. [_Editor: The 125% referenced above does not include the 20% tariff ordered previously; [the cumulative rate](https://www.cbc.ca/news/world/us-china-goods-tariffs-1.7506901) is 145%._]