What’s behind the Executive Order on Tariff Policy? What you need to know

On September 5, President Trump signed a sweeping Executive Order that reconfigures the U.S. tariff regime—marking a pivotal shift in trade and national-economic strategy. Here's what you need to know:

What Did the Order Do?

1. Updated Reciprocal Tariff Exemptions: The Executive Order revises the "Annex II" list of imported goods exempt from reciprocal tariffs. Effective September 8, more than 45 new categories are shielded.
2. New Products Now Subject to Tariffs: Select materials including but not limited to such items as aluminum hydroxide, resins and silicone products are now subject to tariffs.
3. Introduced the “Potential Tariff Adjustments for Aligned Partners” (PTAAP) Framework: A new "Annex III" has been created, listing goods eligible for 0% reciprocal tariffs, provided countries enter into reciprocal trade and security agreements with the United States. This empowers the United States Trade Representative (USTR) and the Department of Commerce to fast-track tariff exemptions on countries that enter into agreements with the U.S.
4. Clarification on International Deals: The broader PTAAP framework now extends similar mechanisms to other aligned partners such as the European Union (EU), providing avenues for tariff relief in exchange for negotiated commitments.

What Comes Next?

This executive order clarifies ongoing trade negotiations by providing a more streamlined process for zero-tariff imports on certain goods.

Businesses should analyze their supply chains to determine whether key inputs are now exempt or have been included in the tariff-eligible category.

See a listing of Harmonized Tariff Schedule (HTS) Codes impacted by these changes.