Urgent Crackdown on the Synthetic Opioid Supply Chain: A Critical Policy Shift

Addressing the Synthetic Opioid Crisis

By the authority granted to me as the President of the United States under the Constitution and relevant federal laws—including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), Section 604 of the Trade Act of 1974 (19 U.S.C. 2483), and Section 301 of Title 3, United States Code—I hereby enact and enforce the following provisions to combat the escalating threats posed by the synthetic opioid supply chain.

On February 1, 2025, Executive Order 14195 was enacted to impose new trade restrictions on China in response to its role in facilitating the distribution of synthetic opioids, including fentanyl, to the United States. The unrelenting influx of these substances, largely originating from China, has been deemed a national security risk and an economic threat. The illicit drug crisis fueled by synthetic opioids has led to thousands of deaths annually, destabilizing communities, burdening healthcare systems, and creating significant law enforcement challenges. The inability or unwillingness of the Chinese government to curb this crisis through stringent enforcement and regulatory measures has necessitated additional actions on the part of the United States.

Strengthening National Security and Public Health

The synthetic opioid crisis has had devastating consequences on communities across the United States. With this policy, we take decisive action to disrupt the supply chain, enforce stricter trade regulations, and hold accountable those who enable the illicit distribution of synthetic opioids.

As part of this initial effort, I exercised my authority under Section 1702(a)(1)(B) of IEEPA to introduce ad valorem tariffs on certain imports from China. These tariffs, defined by a Federal Register notice referenced in Section 2(d) of Executive Order 14195 and later amended by Executive Order 14200 on February 5, 2025, were intended to impose economic consequences on China for its failure to mitigate the global opioid epidemic.

Despite the enforcement of these measures, recent assessments indicate that China has not undertaken sufficient actions to disrupt the supply chain of synthetic opioids. Reports suggest that illicit production and trafficking remain pervasive, and intermediaries continue to exploit regulatory loopholes. Given that the crisis persists with no significant intervention from the Chinese government, it is necessary to escalate trade measures as a means of compelling greater accountability.

Enforcement and Regulatory Measures

The administration is committed to implementing stronger enforcement actions, increasing penalties, and leveraging economic power to deter the continued influx of synthetic opioids into our country. Further details on tariff adjustments and regulatory enforcement will follow in subsequent provisions.

Considering the continued inaction on the part of China in addressing the synthetic opioid crisis, an amendment is being introduced to further increase economic pressure. Effective immediately, Section 2(a) of Executive Order 14195 is revised as follows:

• The previous tariff rate of 10 percent on specified Chinese goods is hereby replaced with a new tariff rate of 20 percent.
• This revision reflects the urgent need for enhanced deterrence against the facilitation of illicit drug trafficking through economic leverage.
• The updated tariff structure will apply to the same categories of goods identified in previous executive orders, ensuring continuity in enforcement and compliance.

This increase in trade restrictions aims to incentivize the Chinese government to take substantive actions, such as strengthening their regulatory frameworks, increasing law enforcement collaboration, and closing existing legal loopholes that allow drug manufacturers and traffickers to operate with impunity.

Implementation and Legal Considerations

(a) Nothing in this order shall be interpreted as restricting or undermining:

• The legal powers conferred to executive departments, agencies, or their respective leadership under existing U.S. laws.
• The responsibilities and authority of the Director of the Office of Management and Budget in relation to budgetary, administrative, or legislative measures associated with this order.

(b) The provisions outlined herein shall be executed in full compliance with applicable federal laws and will be subject to the availability of funds allocated for their enforcement. The implementation of the revised tariff policy will be overseen by designated federal agencies to ensure adherence and effectiveness.

(c) This executive order does not create any new legal rights or enforceable claims for individuals or entities against the U.S. government, its agencies, officials, employees, or other affiliated entities.

Conclusion and Forward Strategy

The fentanyl crisis continues to pose a grave challenge to public health and national security. The failure of the Chinese government to take aggressive steps in addressing this issue has necessitated a more stringent economic response. The revised tariff policy underscores the urgency of immediate intervention and reinforces the U.S. government’s commitment to curbing the synthetic opioid epidemic.

Through this executive order, we seek not only to hold China accountable for its role in the crisis but also to disrupt the financial incentives that allow illicit drug networks to thrive. Further assessments will be conducted to determine the impact of these measures, and additional sanctions or regulatory adjustments may be considered if the situation does not improve.

The United States remains open to diplomatic engagement with China to establish cooperative enforcement mechanisms, exchange intelligence on drug trafficking operations, and develop regulatory measures that benefit both nations in the long term. However, in the absence of tangible progress, further economic penalties and trade restrictions may be introduced to escalate pressure on China’s industries.

THE WHITE HOUSE,
March 3, 2025.

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Source: The White House