Washington, Aug 8, 2025 – U.S. President Donald Trump has signed a sweeping executive order granting tariff exemptions to countries that enter into industrial export agreements with the United States. The order, effective from Monday noon, is aimed at reshaping global trade, reducing America’s trade deficit, and incentivizing allies to expand cooperation.
What the Order Covers
The new policy eliminates tariffs on more than 45 categories of goods, including:
-
Nickel and natural graphite – essential for stainless steel and electric vehicle batteries.
-
Pharmaceutical compounds such as lidocaine and diagnostic test materials.
-
Gold products including bullion, powder, and leaf.
-
Selected agricultural goods, aircraft parts, and non-petitioned medical products.
According to the White House, these exemptions primarily cover goods that the U.S. cannot produce domestically or in sufficient quantity.
Who Benefits
Partner countries that sign the Framework Agreement with the U.S. will qualify for zero import tariffs. These agreements require reciprocal reductions in tariffs and trade barriers. Early beneficiaries are expected to include U.S. allies such as Japan and the European Union (EU).
However, countries without agreements – like Switzerland, currently facing a 39% tariff on certain exports – will remain outside the exemption list until they strike a deal with Washington.
Structural Changes in Trade Policy
One notable provision allows the U.S. Trade Representative (USTR), Commerce Department, and Customs to independently approve tariff waivers under the framework, eliminating the need for repeated executive orders.
At the same time, Trump rescinded some earlier exemptions, including those on plastics and polysilicon, critical for solar panel manufacturing.
Strategic Goals and Impact
The Trump administration emphasized that the policy is designed to:
-
Protect American industrial interests.
-
Encourage supply diversification for resources like critical minerals.
-
Strengthen trade ties with partners willing to cooperate on reciprocal terms.
Economists suggest the move could reorganize global supply chains and potentially boost U.S. industries reliant on imported raw materials, but it may also trigger fresh disputes with countries excluded from the exemptions.
With the executive order now in force, the global trade community is closely watching how partner nations respond — and whether this step reshapes the balance of industrial exports worldwide.