What goods are exempted from Trump's new 10% tariff?
What's the story
US President Donald Trump has announced a temporary 10% global import duty, effective for 150 days. The move comes after the Supreme Court struck down previous tariffs imposed by his administration under the International Emergency Economic Powers Act of 1977. The new tariffs, which will come into force on Tuesday, were announced via executive orders signed by Trump.
Tariff replacement
New tariffs to replace existing ones
The new tariffs will replace the existing ones, which range from 10% to 50%, under the International Emergency Economic Powers Act of 1977 (IEEPA). Trump has also ordered fresh investigations under other laws that could let him reimpose these tariffs. The move is part of his administration's strategy to tackle "large and serious" balance-of-payments issues with other countries.
Tariff exemptions
Exemptions under new tariff
The new 10% tariff, while applicable to all countries including India, has certain exemptions. These include aerospace products, passenger cars and some light trucks, goods from Mexico and Canada under the US-Mexico-Canada trade agreement, pharmaceuticals as well as certain critical minerals and agricultural products. The White House fact sheet said some goods are exempted due to US economy needs or to ensure duties effectively address "fundamental international payments problems."
Additional exemptions
More exemptions listed under new tariff
Other exemptions include metals used in currency and bullion, energy and energy products, natural resources and fertilizers that can't be produced or grown in the US. Many agricultural products such as beef, tomatoes, oranges as well as pharmaceuticals and certain electronics are also exempt. The 10% tariff order justified using Section 122 of Trade Act of 1974 to address "large and serious" balance-of-payments issues.