President Trump Executive Order Modifies Scope of Reciprocal Tariffs
The below was taken in part from CSMS# 66151866 and the NCBFAA:
President Trump issued an Executive Order Friday evening, Sept. 5th, 2025, that modifies the scope of the Annex II list of reciprocal tariffs which become effective at 12:01 AM ET on Sept. 8th, 2025.
President Trump has “determined that it is necessary and appropriate to modify the scope of the articles listed in Annex II to deal with the national emergency and protect America’s economic and national security.”
According to a White House fact sheet, some goods have been added to Annex II, meaning they will no longer be subject to reciprocal tariffs. These goods include bullion-related articles and certain critical minerals and pharmaceutical products subject to pending Section 232 investigations, while other goods have been removed from Annex II, meaning they are now subject to reciprocal tariffs. These goods include certain aluminum hydroxide, resin, and silicone products.
The modified Annex II is available here.
“Except in rare circumstances, I will refrain from narrowing the scope of the reciprocal tariff or any relevant section 232 tariff before the conclusion of a final trade and security agreement (final agreement) between the foreign trading partner and the United States,” President Trump stated in the Executive Order.
The Executive Order establishes the “Potential Tariff Adjustments for Aligned Partners” (PTAAP) Annex, which contains the list of products for which the President may be willing to apply only the Most-Favored-Nation (MFN) tariff upon the conclusion of any future reciprocal trade and security deal. These products fall in four categories:
- certain aircraft and aircraft parts;
- certain generic pharmaceuticals and their ingredients;
- unavailable natural resources and closely related derivative products; and
- certain agricultural products not grown or produced in sufficient quantity in the United States to meet domestic demand.
To earn a reduction of reciprocal tariffs for some or all of the products listed in the PTAAP Annex, a trading partner must conclude a deal with the United States that helps mitigate the national emergency relating to the trade deficit. Additionally, the President will evaluate the extent of a trading partner’s commitments to address U.S. trade concerns, among other things, when determining which products on the PTAAP Annex qualify for a tariff reduction.
GUIDANCE
PRODUCTS THAT HAVE BEEN ADDED TO OR REMOVED FROM ANNEX II
The modification pursuant to the September 5th, 2025 Executive Order shall be effective with respect to such goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM ET on September 8th, 2025. Only products that are properly classified in the headings and subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) that are listed in Annex II are exempted from the tariff action imposed by Executive Order 14257, as amended.
Importers should report the secondary classification under subheading 9903.01.32 for products properly classified in the heading and subheadings of the HTSUS that are identified in Annex II to declare the exemption from the reciprocal tariff provided in subheading 9903.01.25, or in subheadings 9903.02.02 – 9903.02.71.
For any entries that were pre-filed with subheading 9903.01.32 and that are entered for consumption or withdrawn from warehouse for consumption on or after September 8th, 2025, that include products added to or removed from Annex II, importers should take action as necessary to correct entries to reflect the correct reciprocal tariff applicability as soon as possible no later than within ten days of the cargo’s release from CBP custody.
TRADE AND SECURITY AGREEMENTS
The Secretary of Commerce and the United States Trade Representative have been granted the authority to determine if an action is appropriate to implement framework and/or final agreements in accordance with the September 5th, 2025 Executive Order. Framework or final agreements may include additional product exemptions as deemed appropriate by the Secretary of Commerce and the United States Trade Representative.
RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any further questions.
