Trump signs order granting tariff exemptions on several goods to ‘aligned partners’
Trump signs executive order granting tariff exemptions on metals, pharmaceuticals, and chemicals for US trade partners with reciprocal agreements
US President Donald Trump has signed an executive order providing some tariff exemptions to trading partners who enter into agreements with the US regarding industrial exports of nickel, gold and other metals. The order also covers pharmaceutical compounds and chemicals.
According to the order, the exemptions for countries with U.S. trade deals are set to begin at 12:01 a.m. EDT/0401 GMT on Monday.
Over 45 categories identified
Over 45 categories have been identified in the latest order by Trump for exemption from reciprocal tariffs from "aligned partners" who have entered into framework pacts to avail exemption from "reciprocal" tariffs and duties imposed under the Section 232 national security statute. The order was signed on Friday (September 4).
“Today’s (September 5) Order establishes the 'Potential Tariff Adjustments for Aligned Partners' (PTAAP) Annexe, which contains the list of products for which the President may be willing to apply only the Most-Favoured-Nation (MFN) tariff upon the conclusion of any future reciprocal trade and security deal,” stated a release by the White House.
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Four categories of exempted imports
It further states that the exempted products are divided into four categories, such as certain generic pharmaceuticals and their ingredients; unavailable natural resources and closely related derivative products; and certain agricultural products not grown or produced in sufficient quantity in the United States to meet domestic demand.
The order further stated that to earn a reduction of reciprocal tariffs for some or all of the “products listed in the PTAAP Annexe”, a trading partner must conclude a deal with the United States that helps mitigate the national emergency relating to the trade deficit.
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Tariff reduction depends on multiple factors
Trump stated in the order that his willingness to reduce tariffs will depend on several factors, including the scope and economic value of a trading partner’s commitments to the United States in its agreement on reciprocal trade and the US’ national interests.
“My willingness to reduce the reciprocal tariff to zero percent for a given import or to modify tariffs imposed under section 232 will depend on numerous factors, including the scope and economic value of a trading partner’s commitments to the United States in its agreement on reciprocal trade, the national interests of the United States, the need to deal with the national emergency declared in Executive Order 14257, and the need to reduce or eliminate the threats to national security I have found pursuant to section 232,” Trump stated in the order.