President Donald Trump signed an executive order on Sept. 5 modifying the scope of reciprocal tariffs, including possible adjustments to tariffs on certain items for “aligned partners” that reach reciprocal trade and security deals with the United States.
The changes will take effect on Sept. 8, according to the fact sheet.
The excluded items include bullion-related articles such as gold and silver, along with certain critical minerals and pharmaceutical products currently under Section 232 probes, which are being conducted to examine the national security implications of importing the products.
The order also lists four categories of goods subject to “potential tariff adjustments for aligned partners,” with tariff rates to be lowered if a trading partner reaches a reciprocal trade deal with the U.S. government that “helps mitigate national emergency relating to the trade deficit.”
The categories cover aircraft and aircraft parts, certain generic pharmaceuticals and their ingredients, scarce natural resources and related derivative products, as well as agricultural products that are insufficiently produced in the United States.
The White House said that Trump “will evaluate the extent of a trading partner’s commitments to address U.S. trade concerns” when deciding which products within these categories qualify for a tariff reduction.
In his order, Trump said he may cut reciprocal tariffs to zero percent on certain imports, depending on “the scope and economic value” of a trading partner’s commitments to the United States in its reciprocal trade deal, along with U.S. national interests and security purposes.
“Given the complex, fact-specific, and sensitive nature of negotiations and the national emergency declared in Executive Order 14257, among other relevant considerations, the imports that might receive a reciprocal tariff rate of zero percent may be different for each final agreement between a foreign trading partner and the United States,” he stated.
The order also states that certain aluminum hydroxide, resin, and silicone products will now be subject to reciprocal tariffs imposed on trading partners.
On April 2, Trump announced a 10 percent baseline tariff on nearly all countries, along with reciprocal tariffs that vary depending on their trade barriers with the United States, in a move to address trade deficits.
Victoria Friedman contributed to this report.
