Yesterday, President Trump signed an Executive Order that modified the existing U.S. regime of “Reciprocal” tariffs established pursuant to the International Emergency Economic Powers Act. First, a revised set of generally applicable product exclusions, including modest product additions and a few product exclusions, will take effect for products entered on or after September 8, 2025. Second, the Executive Order also provides some clarity regarding the scope of potential tariff dealmaking with U.S. trading partners and the process for implementing those deals. The President ordered most of these revisions for the purpose of implementing some of the recently announced “Framework” agreements made with other countries. For companies watching those negotiations, yesterday’s Order provides greater guidance in interpreting the meaning of general terms referenced in such “Framework” agreements.
IEEPA Product Exclusions Revised Again
When the Reciprocal Tariff regime was originally established, it included a list of goods, denoted by headings and subheadings of the Harmonized Tariff Schedule of the United States (“HTSUS”), that were excluded from those tariffs. However, the Reciprocal Tariff Executive Order contained an open-ended section on modification authority which made clear that the provisions were subject to change. Indeed, less than a week after the Reciprocal Tariffs entered into force, the list of excluded goods was expanded to include a broad swathe of consumer electronics.
Yesterday’s Executive Order marks the first contraction of the excluded goods list. Eight HTSUS subheadings are to be removed, effective beginning with entries made September 8, 2025. The removed products include aluminum hydroxide and certain other chemical products, most of which relate to plastics.
Thirty-nine HTSUS subheadings are to be newly added to the excluded goods list. These products would then benefit from product exclusions, with effect from September 8, 2025. The added products include certain graphite, ores, organic chemicals, wood pulp, gold and other precious metals, zinc powder, NIB magnets, LEDs, and various articles containing nickel.
The Executive Order otherwise instructs various cabinet officials, led by the Secretary of Commerce and U.S. Trade Representative, to monitor conditions including “the U.S. trade deficit, the lack of reciprocity in our bilateral trade relationships, disparate tariff rates and non-tariff barriers, U.S. trading partners’ economic policies that suppress domestic wages and consumption imports, the strength of our domestic manufacturing base, [and] the strength of our defense industrial base.” As has been seen in the Section 232 context, where the findings of a monitoring program were cited in the imposition of tariffs on automobiles, the Reciprocal Tariff monitoring arrangement may yield further modification of those tariffs, possibly including the list of excluded products.
The complete list of the soon-to-be excluded and included HTSUS subheadings, along with their associated product descriptions, are provided at the end of this Insight.
Product-Specific Reciprocal Tariff Modification in the Context of “Dealmaking”
In addition to generally applicable product exclusion changes summarized above, the Order also contains a 72-page Annex III, which lists products “for which [the U.S.] may be willing to provide a zero percent reciprocal tariff rate” in the context of a trade deal.
The products are summarized as “products that cannot be grown, mined, or naturally produced in the United States or grown, mined, or naturally produced in sufficient quantities in the United States to satisfy domestic demand; certain agricultural products; aircraft and aircraft parts; and non-patented articles for use in pharmaceutical applications.” The list includes at least one HTSUS subheading in every chapter except Chapters 17, 22, 24, 27, 37, 41, 42, 43, 47, 49, 52-67, 69, 77, 78, 82, 86, 87, 89, 92, 93, 95, 97.
But, notwithstanding the long list, most HTSUS subheadings are subject to one of the following “scope limitations”:
- “EX” (defined and limited by the product description),
- “Aircraft” (only civil aircraft, ground flight simulators, and parts of each), and
- “Pharma” (only non-patented articles for use in pharmaceutical applications).
These scope limitations are especially prevalent in relationship to HTSUS chapters with the most covered subheadings: 28, 29, and 30 (Pharma); and 73, 84, 85, and 90 (Aircraft).
The annex provides that “[o]nly items that are properly classified in the listed provisions of the HTSUS are potentially eligible to be exempted from [reciprocal tariffs],” but of course as with any negotiating position it is subject to change and there may be potential for other items to receive a reduced reciprocal tariff rate without a complete “exemption.” The Order also notes that the products on Annex III to which favorable treatment is extended may vary between each “Final” agreement (detailed further below), noting “the complex, fact-specific, and sensitive nature of negotiations” between the United States and its foreign trading partners. Moreover, it is important to note that this list is specific to reciprocal tariffs and does not preclude or narrow the potential for separate action to exempt items from Section 232 tariffs.
Clarifying the Process for Implementing Trade Deals
Since undertaking tariff negotiations, the Trump Administration has announced numerous deals, including those with the European Union, Japan, the United Kingdom, Indonesia, and Vietnam. The process by which each has been announced and implemented has varied considerably. Yesterday’s Executive Order clarifies the Trump Administration’s view of how implementation is intended to work.
It breaks deals into two broad stages: “Framework” deals and “Final” deals. The Framework deals are essentially preliminary deals, with broad terms having been agreed upon but details remaining to be defined.
Essentially, the Order provides that some implementation of a Framework deal may occur, but implementation of any major changes would presumptively come in the context of a Final deal. Notably, however, the Order expressly contemplates deals encompassing Section 232 tariffs as well as reciprocal tariffs, an “all-in” characterization that the Administration had seemed to shy away from in other contexts, notwithstanding the inclusion of both types of tariffs in many announced deals. Furthermore, the Order references possible duty refunds in the context of both Framework and Final deals.
With respect to Framework deals, the Order expresses a “general unwilling[ness]” to narrow the scope of reciprocal tariffs or modify Section 232 tariffs. However, it nevertheless requires the Secretary of Commerce and the U.S. Trade Representative to determine whether to begin implementing a deal at the Framework stage. This determination will consider whether “any condition or conditions to such action have occurred or will occur before the relevant action by the United States,” and otherwise empowers these officials to take the necessary implementing actions.
For Final deals, the provision is simpler. The Order instructs the Secretary of Commerce and U.S. Trade Representative to “take the necessary and appropriate actions to implement the final agreement.” This is further supported by an assertedly broad delegation of authority under IEEPA and Section 232.
Putting these standing orders in place has the potential to streamline the implementation process, and hand a greater proportion of day-to-day decision-making to the Secretary of Commerce and U.S. Trade Representative in particular.
Adjusting Supply Chains and Negotiating
The attorneys, licensed customs brokers, compliance professionals, economists, and trade specialists of Cassidy Levy Kent regularly assist companies in evaluating their supply chains to ensure compliant market access and adjust for tariff-related developments, both mitigating burdens and taking advantage of opportunities. Cassidy Levy Kent also leverages its thorough understanding of relevant legal regimes to advise companies, governments, and other interested entities on tariff policy and procedures.
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ANNEX
Goods to Be Added to the List of Reciprocal Tariff Product Exclusions
| 2504.10.10 | Natural graphite, in powder or in flakes, Crystalline flake (not including flake dust) |
| 2604.00.00 | Nickel ores and concentrates |
| 2609.00.00 | Tin ores and concentrates |
| 2612.20.00 | Thorium ores and concentrates |
| 2613.90.00 | Molybdenum ores and concentrates: Other than Roasted |
| 2825.40.00 | Nickel oxides and hydroxides |
| 2833.24.00 | Other than sodium sulfates: Of Nickel |
| 2903.51.10 | 2,3,3,3-Tetrafluoropropene (HFO-1234yf),1,3,3,3-tetrafluoropropene (HFO-1234ze) and (Z)-1,1,1,4,4,4-hexafluoro-2-butene (HFO-1336mzz) |
| 2924.29.01 | p-Acetanisidide;p-Acetoacetotoluidide; 4′-Amino-N-methylacetanilide; 2,5-Dimethoxyacetanilide; andN-(7-Hydroxy-1-naphthyl)acetamide |
| 2924.29.03 | 3,5-Dinitro-o-toluamide |
| 2924.29.23 | 4-Amino acetanilide; 2,2′-Oxamido bis [ethyl-3-(3,5-di-tert-butyl- 4-hydroxyphenyl) propionate]; Aceto acetsulfanilic acid, potassium salt; and N-(2,3-Dihydroxy propyl)-5-N-(2,3-dihydroxy- propyl) acetamido-N’-(2-hydroxyethyl)- 2,4,6-triiodoisophthalamide |
| 2924.29.26 | 3-Aminomethoxybenzanilide |
| 2924.29.28 | N-[[(4-Chlorophenyl)amino]carbonyl]-2,6- difluorobenzamide; and 3,5-Dichloro-N-(1,1-dimethyl-2-propynyl)- benzamide (Pronamide) |
| 2924.29.33 | 3-Hydroxy-2-naphthanilide; 3-Hydroxy-2-naphtho-o-toluidide; 3-Hydroxy-2-naphtho-o-anisidine; 3-Hydroxy-2-naphtho-o-phenetidide; 3-Hydroxy-2-naphtho-4-chloro-2,5- dimethoxyanilide; 3-Hydroxy-3′-nitro-2-naphthanilide; andN,N’-Bis(acetoacetyl-o-toluidine) |
| 2924.29.57 | Diethylaminoacetoxylidide (Lidocaine) |
| 2924.29.80 | 2,2-Dimethylcyclopropylcarboxamide |
| 2926.90.50 | Nonaromatic nitrile-function compounds, nesoi |
| 2933.29.05 | Aromatic or modified aromatic goods: 1-[1-((4-Chloro-2-trifluoromethyl)phenyl)- imino)-2-propoxyethyl]-1H-imidazole (Triflumizole); and Ethylene thiourea |
| 2933.29.60 | Imidazole |
| 4703.11.00 | Unbleached coniferous chemical woodpulp |
| 4703.21.00 | Semibleached or bleached coniferous chemical woodpulp |
| 4703.29.00 | Semibleached or bleached nonconiferous chemical woodpulp |
| 7108.11.00 | Gold, nonmonetary, powder |
| 7108.12.50 | Gold, nonmonetary, other unwrought forms, other |
| 7108.13.10 | Gold, nonmonetary, other semimanufactured forms, gold leaf |
| 7108.13.55 | Gold, nonmonetary, other semimanufactured forms, rectangular or near rectangular shapes, containing 99.5% or more by weight of gold and not otherwise marked or decorated than with weight, purity, or other identifying information |
| 7108.13.70 | Gold, nonmonetary, other semimanufactured forms, other |
| 7108.20.00 | Gold, monetary |
| 7115.90.05 | Articles of precious metal, in rectangular or near rectangular shapes, containing 99.5% or more by weight of a precious metal and not otherwise marked or decorated than with weight, purity, or other identifying information |
| 7115.90.30 | Articles of precious metal or of metal clad with precious metal, other articles of gold, including metal clad with gold |
| 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 |
| 8505.11.0070 | Sintered neodymium-iron-boron magnets |
| 8541.41.00 | Light emitting diodes (LED) |
Goods to Be Removed from the List of Reciprocal Tariff Product Exclusions
| 2818.30.00 | Aluminum hydroxide |
| 3824.99.93 | Chemical products and preparations and residual products of the chemical or allied industries, nesoi |
| 3907.29.00 | Polyethers, other than polyacetals or bis(polyoxyethylene) methylphosphonate, in primary forms |
| 3907.30.00 | Epoxide resins in primary forms |
| 3907.61.00 | Polyethylene terephthalate, having a viscosity number of 78 ml/g or higher |
| 3907.69.00 | Polyethylene terephthalate, having a viscosity number less than 78 ml/g |
| 3907.99.50 | Other polyesters nesoi, saturated, in primary forms |
| 3910.00.00 | Silicones in primary forms |