The White House Announces Modified Scope of Reciprocal Tariffs

In addition to expanding tariff exemptions to more than 45 goods, a new annex was established to outline potential tariff reductions under future trade agreements.

On September 5, 2025, the White House issued an executive order modifying the scope of U.S. reciprocal tariffs and establishing procedures for implementing future trade and security agreements.

The order revises the list of products covered by existing reciprocal tariffs and establishes a framework for granting tariff relief once reciprocal commitments are secured with trading partners.

According to the order, while the U.S. is generally unwilling to narrow the scope of reciprocal tariffs or alter section 232 tariffs before a final agreement, such changes may be included in future trade deals.

Updates to existing tariff exemptions

The latest executive order states that over 45 categories of goods could receive zero import tariffs from “aligned partners” that reach framework agreements to reduce both reciprocal tariffs and duties imposed under Section 232.

The order modifies Annex II of Executive Order 14257, which lists goods excluded from reciprocal tariffs. The changes include:

• Newly added exemptions, such as bullion, critical minerals, and certain pharmaceutical products
• Goods removed from the exemption list and now subject to tariffs, such as aluminum hydroxide, resins, and silicones

The modified Annex II will take effect on September 8, 2025.

Introduction of potential tariff adjustments annex

A new annex titled Potential Tariff Adjustments for Aligned Partners (PTAAP) has been established, as per the executive order.  

It lists categories of goods that may qualify for zero tariffs or Most-Favored-Nation (MFN) tariff treatment for reciprocal agreements. 

• Certain aircraft and aircraft parts
• Certain generic pharmaceuticals and their ingredients
• Unavailable natural resources and closely related derivative products
• Certain agricultural products that are not grown or produced in sufficient quantities in the U.S.

While the PTAAP annex serves as a reference point for negotiations with trading partners, reduced reciprocal tariffs require a trading partner to reach an agreement that addresses U.S. trade concerns.  

Next steps for U.S. importers

If you import goods into the U.S., we recommend you take the following next steps:

• Check whether your products are now exempt or classified under tariffs
• Review your supply chain contracts and pricing models to account for potential cost changes as of September 8, 2025
• Consult your customs broker to confirm tariff classifications and validate exemption eligibility 

How Cole International can help

At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consultingservices to help businesses navigate these changes.

Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance processes.

Please contact one of our trade professionals to ensure business continuity and explore opportunities to reduce your costs under the revised tariff framework.