September 5th the White House released an Executive Order which (a) modifies the scope of the reciprocal tariffs and (b) establishes the procedures for implementing trade and security agreements.
• Annex II of the Executive Order modifies the list of products which are exempted from reciprocal tariffs.
Some products have been added to Annex II, which means that they will no longer be subject to reciprocal tariffs. These products include bullion-related articles and certain critical minerals and pharmaceutical products which are subject to pending Section 232 investigations.
The exemption for the new products added to Annex II will apply to imports which are entered or withdrawn from warehouse for consumption on or after September 8, 2025. The Executive Order does not provide for the new exemptions to be applied retroactively.
The following metal and mineral products have been added to Annex II:
2604.00.00 Nickel ores and concentrates
2609.00.00 Tin ores and concentrate
2612.20.00 Thorium ores and concentrates
2613.90.00 Molybdenum ores and concentrates, not roasted
2825.40.00 Nickel oxides and hydroxides
2833.24.00 Nickel sulfate
7202.60.00 Ferronickel
7501.10.00 Nickel mattes
7502.10.00 Nickel, not alloyed
7502.20.00 Nickel alloys
7503.00.00 Nickel waste and scrap
7504.00.00 Nickel powders and flakes
7903.90.30 Zinc powder
Some products have been removed from Annex II, which means that they are now subject to reciprocal tariffs. These products include certain aluminum hydroxide, resin, and silicone products.
The changes to Annex II will apply to imports which are entered or withdrawn from warehouse for consumption on or after September 8, 2025.
The general rules for the administration of the reciprocal tariffs were not changed by Friday’s Executive Order. Thus, the baseline and country-specific reciprocal tariff rates continue to apply, and the exemptions in addition to the products listed in Annex II also continue to apply. These include, for example, the exemptions for products subject to Section 232 tariffs.
• Annex III to the Executive Order contains a list of products which may be exempted from future trade agreements. It is also attached.
These products fall into four general categories: (1) certain aircraft and aircraft parts; (2) certain generic pharmaceuticals and their ingredients; (3) unavailable natural resources and closely related derivative products; and (4) certain agricultural products not grown or produced in sufficient quantity in the United States to meet domestic demand.
The White House has stated that negotiations for trade deals are currently ongoing with Indonesia, Korea, the Philippines, and Vietnam.