US President Trump has officially reduced the tariff on Chinese exports to the US related to fentanyl from 20% to 10%, fulfilling a key aspect of the comprehensive trade agreement reached with Chinese leader Xi Jinping and marking a major concession towards China.
According to an executive order released by the White House on the 4th, the tariff rate for fentanyl-related Chinese imports to the US will be lowered from the current 20% to 10%, taking effect on November 10.
In the executive order, Trump stated: “The People’s Republic of China has committed to take major measures to prevent the flow of fentanyl into the United States, including stopping the shipment of certain designated chemicals to North America and strictly controlling the export of other chemicals to various countries around the world.”
Previously, Trump had increased tariffs on China over the fentanyl issue, aiming to pressure Beijing to step up efforts to combat the trafficking of this deadly drug and its precursor chemicals. On October 30, after meeting with Chinese President Xi Jinping in Busan, South Korea, Trump agreed to lower the tariff rate, citing progress in China’s efforts on this front.
Trump stated that the US State Department and Department of Homeland Security will continue to monitor China's implementation of the agreement.
Trump said: “If the People's Republic of China fails to fulfill the commitments described in Section 1 of this order, I may modify this order as necessary.”
Bloomberg analysts remarked that reducing the fentanyl-related tariff represents a significant concession to China; the US-China trade truce agreement will also extend the suspension period of another 24% tariff by one year. Nevertheless, the overall tariff situation remains unclear; some goods are excluded from benchmark tariffs, while others still face the original tariffs.