The Glossary
Fentanyl Tariff
The IEEPA tariff justified by precursor-chemical flows — 10% in Feb 2025, 20% in March, 10% after Busan.
Definition
In February 2025 the U.S. imposed a 10% tariff on Chinese goods under IEEPA, explicitly tied to the flow of fentanyl precursor chemicals; the rate doubled to 20% on March 4. The Busan Agreement of October 30, 2025 halved it back to 10% — cutting the overall U.S. duty level on Chinese goods from roughly 57% to 47% — in exchange for Chinese controls on precursor exports announced November 10, 2025.
Why it matters
Linking tariffs to drug enforcement rather than trade balances created a novel bargaining chip: measurable by seizure and licensing statistics, and usable to justify rates no trade rationale could carry.