Trump Signs Executive Order Granting Tariff Exemptions to Trade Partners.
U.S. President Donald Trump has signed an executive order offering tariff exemptions to countries that enter framework agreements with the United States. These exemptions apply to over 45 categories of industrial imports, including metals like nickel and gold, pharmaceutical compounds, and chemicals.
The move marks a shift in Trump’s trade strategy, following months of imposing steep tariffs under the Section 232 national security statute to reduce trade deficits and pressure trading partners. The new order aligns U.S. tariffs with existing deals involving allies such as Japan and the European Union.
Under the order, countries that strike reciprocal trade agreements with the U.S. may benefit from zero tariffs on items that are either not produced domestically or are in short supply. These include graphite, neodymium magnets, LEDs, and certain pharmaceutical ingredients, such as lidocaine. Some agricultural products, aircraft parts, and non-patented pharmaceutical items are also eligible.
A White House official confirmed that the order empowers the U.S. Trade Representative, Commerce Department, and customs authorities to waive tariffs on qualifying imports without requiring further executive action.
Notably, the order removes previous exemptions on certain plastics and polysilicon—key materials in solar panel production—while allowing tariff-free imports of various forms of gold, including bullion from Switzerland, which has yet to finalise a trade deal with the U.S.
Trump emphasised that tariff reductions will depend on the economic value and scope of a partner’s commitments, as well as U.S. national interests.
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