Washington, September 5, 2025: US President Donald Trump has signed an executive order granting tariff exemptions to countries that have struck reciprocal trade agreements with Washington, with the changes set to take effect from Monday.
The move marks a significant shift in Trump’s tariff-heavy trade strategy, which has defined his second term as he seeks to reorder the global trading system, reduce US trade deficits, and pressure partners into concessions.
The order identifies more than 45 product categories eligible for zero import tariffs from “aligned partners,” including industrial metals such as nickel and gold, as well as key pharmaceutical compounds and chemicals. It also creates new carve-outs for select agricultural products, aircraft parts, and non-patented pharmaceutical articles.
According to the White House, the cuts will apply to goods that cannot be grown, mined, or produced in sufficient volume within the US. Exemptions cover items such as natural graphite, neodymium magnets, LEDs, and medical reagents, while eliminating earlier exemptions on certain plastics and polysilicon used in solar panels.
Graphite and nickel—essential for stainless steel and electric vehicle batteries—are among the most notable items now exempt from tariffs for qualifying partners. Gold imports, including bullion and leaf, will also be covered, offering relief to Switzerland, which currently faces a 39% tariff amid stalled trade negotiations.
Trump said tariff reductions will depend on “the scope and economic value of a trading partner’s commitments” as well as US national interests. The executive order empowers the US Trade Representative, Commerce Department, and customs officials to waive tariffs on eligible imports from reciprocal trade deal countries without requiring further presidential approval.
The exemptions align US tariff policy with commitments under existing framework agreements, including those with Japan and the European Union.
