Trump signs executive order exempting some goods from reciprocal tariffs
What's the story
US President Donald Trump has signed an executive order exempting certain goods from reciprocal tariffs. The move is aimed at "aligned partners" who strike deals on industrial exports such as nickel, gold, and other metals, as well as pharmaceutical compounds and chemicals. The tariff exemptions will come into effect from Monday, the White House has announced.
Tariff details
Exemptions only for aligned partners
The executive order identifies over 45 categories of goods that will be exempt from import tariffs. However, these exemptions are only applicable to "aligned partners" who agree to a deal with the US. This deal should help mitigate the national emergency relating to the trade deficit in order to "earn a reduction of reciprocal tariffs."
PTAAP Annex
New annex lists products subject to future deals
The order establishes the 'Potential Tariff Adjustments for Aligned Partners' (PTAAP) Annex. This new section lists products that may only be subject to the Most-Favored-Nation (MFN) tariff after any future reciprocal trade and security deal is concluded. The move is part of Trump's broader strategy to incentivize manufacturing in America and protect US industries from unfair trade practices.
Economic impact
Trump's tariff policies boost US economy
The White House document highlights that Trump's tariff policies have led to major investments in the US, bolstering the US economy. These measures are aimed at addressing unfair trade practices that have hurt American workers for years. By imposing tariffs on countries with nonreciprocal trade practices, Trump is "incentivizing manufacturing on American soil and defending our industries," the document adds.