Inside Trump’s new executive order allowing tariff exemptions for aligned partners

US President Donald Trump signed an executive order creating tariff exemptions for trading partners that secure framework agreements on industrial exports and reciprocal trade.

The exemptions, which cover more than 45 categories of goods, are set to take effect at 12:01 a.m. EDT (0401 GMT) on Monday, September 8, 2025.

The order extends to materials such as nickel, gold, pharmaceutical compounds, chemicals, and other items not readily produced in the United States.

It follows months of tariff hikes imposed by Trump under the Section 232 national security statute as part of his broader effort to restructure global trade relationships and reduce US deficits.

Trump has now signed around 200 executive orders.

Framework deals as a condition

According to the executive order, tariff exemptions depend on the “scope and economic value of a trading partner’s commitments to the United States” as well as national interests.

Trading partners with reciprocal agreements can see tariffs waived on listed goods without requiring additional executive orders.

A White House official said the carveouts also extend to some agricultural products, aircraft and parts, and non-patented materials used in pharmaceuticals.

The official noted that the new system provides the US Trade Representative, the Commerce Department, and customs authorities with flexibility to act directly once reciprocal deals are signed.

Scope of covered goods

Among the zero-tariff items are graphite and nickel, both important for stainless steel manufacturing and electric vehicle batteries.

The order also includes compounds used in generic drugs, such as lidocaine and reagents for diagnostic testing.

Gold imports, ranging from powders and leaf to bullion, are part of the list as well.

Switzerland, a major supplier of gold to the United States, has faced tariffs of 39% due to the absence of a trade deal.

Other products included are neodymium magnets, light-emitting diodes (LEDs), and natural graphite.

At the same time, the order removes exemptions for certain plastics and polysilicon, which are widely used in solar panel manufacturing.

The latest move aligns US tariffs with commitments already made in agreements with allies, including Japan and the European Union.

The exemptions are designed to incentivise additional partners to strike reciprocal deals while underscoring the administration’s focus on linking tariff reductions to negotiated concessions.

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