Investing.com -- President Trump has escalated the tariff on goods from the People’s Republic of China to 20%. The increase comes as a response to China’s failure to address the influx of fentanyl into the United States.

The President signed an executive order titled "Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China". The order was enacted under the authority vested in the President by the Constitution and the laws of the United States, including the International Emergency Economic Powers Act, the National Emergencies Act, section 604 of the Trade Act of 1974, and section 301 of title 3, United States Code.

The order amends a previous one, Executive Order 14195, signed on February 1, 2025. The initial order claimed that the failure of the Chinese government to control the sustained influx of synthetic opioids, including fentanyl, from China to the United States posed an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.

President Trump invoked his authority under section 1702(a)(1)(B) of the International Emergency Economic Powers Act to impose ad valorem tariffs on articles that are products of China. This was defined by the Federal Register notice described in section 2(d) of Executive Order 14195, as amended by Executive Order 14200 of February 5, 2025.

The new executive order determines that China has not taken sufficient steps to alleviate the illicit drug crisis through cooperative enforcement actions and that the crisis described in Executive Order 14195 has not abated. As a result, the tariff on Chinese goods has been increased from 10% to 20%.

The order also states that it should not be construed to impair or otherwise affect the authority granted by law to an executive department, agency, or the head thereof. It also does not affect the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

The order will be implemented consistent with applicable law and subject to the availability of appropriations. It 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. The order was signed at the White House on March 3, 2025.

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