Over 45 product categories, including nickel and pharmaceuticals, will see zero tariffs for partners with trade agreements.
Exemptions target goods not produced sufficiently in the U.S. while supporting strategic imports like EV materials and medical compounds.
The move aligns tariffs with negotiated deals, pressuring allies to commit to reciprocal trade terms.
U.S. President Donald Trump signed an executive order that would grant some tariff exemptions to trading partners that make agreements on industrial exports, including nickel, gold, and other metals, as well as pharmaceutical compounds and chemicals.
According to Reuters, in an attempt to reduce U.S. trade deficits, reorganise the global trading system, and pressure trading partners into making concessions during negotiations, Trump has spent his first seven months in office accumulating significant tariff increases.
With the signing of framework agreements to reduce Trump's "reciprocal" tariffs and taxes imposed under the Section 232 national security statute, his most recent order designates over 45 categories for zero import tariffs from "aligned partners."
The decision issued Friday, September 6, 2025, aligns U.S. tariffs with its obligations under current framework agreements, including those with allies like the European Union and Japan.
Reuters reported that it stated that the exemptions for nations with trade agreements with the United States will start on Monday, September 8, 2025, at 12:01 a.m. EDT/0401 GMT.
According to Trump's directive, the "scope and economic value of a trading partner’s commitments to the United States in its agreement on reciprocal trade" as well as American national interests determine whether he is willing to lower tariffs.
Products that "cannot be grown, mined, or naturally produced in the United States" or that are not produced in large enough quantities to satisfy domestic demand are included in the cuts.
According to a White House official, it also develops new carve-outs for non-patented medicinal items, aircraft and parts, and certain agricultural products.
Without a fresh executive order from Trump, the U.S. Trade Representative, the Commerce Department, and customs will be able to waive duties on covered imports in cases where a nation has reached a "reciprocal" trade agreement with the United States, the official said.
Graphite and other kinds of nickel, a crucial component in the production of stainless steel and electric vehicle batteries, are among the zero-tariff commodities mentioned in the order.
Compounds found in generic medications, such as the anaesthetic lidocaine and test reagents for medical diagnosis, are also covered.
Reportedly, the order covers a wide range of gold imports, including powders, leaves, and bullion. One important supply from Switzerland is subject to 39 per cent U.S. taxes because a trade agreement has not yet been established.
The directive also removes prior tariff exemptions on specific polymers and polysilicon, a crucial component of solar panels, and allows duties to be dropped on natural graphite, neodymium magnets, and light-emitting diodes (LEDs).
