U.S. President Donald J. Trump on Friday signed an executive order modifying the scope of reciprocal tariffs while creating new procedures for implementing trade and security agreements. The order marks a significant step in the administration’s ongoing effort to reshape the global trading system.
Key changes in the tariff list
The order updates the categories of goods subject to reciprocal tariffs under the Section 232 statute. Some items, such as bullion-related imports, critical minerals, and pharmaceutical compounds, have been exempted, while others — including aluminum hydroxide, resin, and silicone — have been added to the tariff list. These changes will take effect September 8, 2025.
The order also carves out exemptions for goods that the U.S. does not produce in sufficient volume, such as nickel, graphite, and gold imports, as well as certain chemicals used in generic pharmaceuticals and diagnostic testing. At the same time, it removes previous exemptions on some plastics and polysilicon, impacting the solar panel industry.
Streamlined procedures for trade deals
For the first time, the White House has set up a formal process empowering the U.S. Trade Representative, the Commerce Department, and Customs to waive tariffs for imports from countries that secure reciprocal trade or security agreements with the United States. This removes the need for new executive orders each time a framework deal is reached.
White House perspective
Trump said the move aligns tariff policy with U.S. national interests while rewarding partners who agree to fairer trade terms. “My willingness to reduce tariffs depends on the scope and economic value of a trading partner’s commitments to the United States in its agreement on reciprocal trade,” the order reads.
Context
The decision comes seven months into Trump’s second term, during which he has steadily raised tariffs to cut the U.S. trade deficit and extract concessions from trading partners. This latest order offers an incentive system — easing tariffs for allies that strike reciprocal deals while keeping pressure on those who don’t.
