On September 5, 2025, the White House issued a new Executive Order that modifies the scope of reciprocal tariffs and establishes procedures for implementing the framework and final trade agreements. This action builds on the April 2, 2025, Executive Order 14257 and subsequent modifications, citing a national emergency tied to persistent U.S. trade deficits and their stated impact on economic and national security. The order both narrows and expands tariff coverage, creates a new framework for implementing trade deals, and updates the Harmonized Tariff Schedule of the United States (HTSUS).
WHITE HOUSE FACT SHEET: President Donald J. Trump Modifies the Scope of Reciprocal Tariffs and Establishes Procedures for Implementing Trade Deals
EXECUTIVE ORDER: Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements
WHAT CHANGES WERE MADE TO THE SCOPE OF RECIPROCAL TARIFFS?
The new Executive Order revises Annex II of EO 14257 effective at 12:01 AM EST on September 8, 2025.
The following changes took effect:
- Goods added to Annex II and now excluded from reciprocal tariff coverage are certain bullion-related articles, specific pharmaceutical products, and critical minerals under Section 232 review. This means these items will no longer face reciprocal tariffs.
- Goods removed from Annex II, which will now become subject to reciprocal tariffs, include aluminum hydroxide, resin, and silicones. These products will face new tariff obligations.
These modifications align tariff coverage with current investigations and update the scope of exemptions first established in April 2025.
WHAT IS ANNEX III: POTENTIAL TARIFF ADJUSTMENTS FOR ALIGNED PARTNERS?
The order establishes a new annex titled Potential Tariff Adjustments for Aligned Partners (PTAAP). Annex III identifies categories of products that may receive Most-Favored-Nation (MFN) or reduced reciprocal tariff treatment upon the conclusion of a binding trade and security agreement.
The categories include:
- Aircraft and aircraft parts
- Generic pharmaceuticals and active ingredients
- Natural resources unavailable or insufficient in the United States
- Agricultural products not produced domestically at scale
Eligibility under Annex III depends on a trading partner's commitments in framework or final agreements, including steps to mitigate trade deficits and align with U.S. security objectives.
HOW WILL THE PTAAP FRAMEWORK AND FINAL AGREEMENTS BE IMPLEMENTED?
The White House delegated implementation authority to the Secretary of Commerce and the U.S. Trade Representative.
Their responsibilities include:
- Determining whether conditions in framework agreements have been met before adjusting tariffs.
- Taking necessary actions to implement tariff reductions under final agreements.
- Coordinating with U.S. Customs and Border Protection to process refunds of duties if retroactive relief is required.
The decision to lower reciprocal tariffs to zero or adjust related Section 232 measures will depend on the scale of commitments and the alignment of national interests.
WHAT PRODUCTS ARE IMMEDIATELY AFFECTED UNDER ANNEX I AND II?
The White House announcement also makes several technical modifications to the Harmonized Tariff Schedule of the United States (HTSUS):
- Annex I includes new tariff provisions for critical minerals, chemicals, metals, and semiconductor-related products, and excludes specific provisions, including aluminum hydroxide, resins, and silicones. (Note: Annex I is referenced in the Executive Order as amending HTSUS provisions, but the full text has not been publicly released.)
- Annex II revises the scope of reciprocal tariffs by expanding coverage to additional products, while exempting certain bullion-related articles, pharmaceuticals, and critical minerals under Section 232 review.
All modifications apply to goods entered for consumption or withdrawn from the warehouse on or after September 8, 2025.
WHAT ARE THE COMPLIANCE IMPLICATIONS FOR U.S. IMPORTERS?
Importers should take the following steps to prepare for the updated tariff environment:
- Review Annex I and Annex II to confirm whether product classifications are newly subject to reciprocal tariffs or excluded.
- Evaluate shipments in transit before September 8, 2025, to determine eligibility for the prior tariff regime.
- Monitor forthcoming framework and final agreements to identify opportunities for tariff relief under Annex III.
- Coordinate with customs brokers to align entry procedures, recordkeeping, and compliance strategies with updated enforcement provisions.
HOW SHOULD IMPORTERS DECLARE EXEMPTIONS UNDER ANNEX II?
U.S. Customs and Border Protection (CBP) guidance states that importers must use subheading 9903.01.32 when declaring exemptions for products listed in Annex II. This secondary classification must be reported alongside the applicable HTSUS provision to claim the exemption from reciprocal tariffs provided in subheading 9903.01.25 or in subheadings 9903.02.02–9903.02.71.
For entries pre-filed with subheading 9903.01.32 that involve products added to or removed from Annex II effective September 8, 2025, importers must correct entries within ten days of release from CBP custody to ensure accurate tariff treatment.
The Secretary of Commerce and the U.S. Trade Representative may expand exemptions in connection with framework or final trade agreements, allowing additional products to qualify under Annex II as agreements are implemented.
HOW DO THESE TARIFF REVISIONS RELATE TO THE FEDERAL CIRCUIT'S IEEPA RULING?
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs. That decision limits reliance on IEEPA for tariff-setting and paused further proceedings until October 14, 2025, while the U.S. Supreme Court considers the appeal. The September 5 Executive Order lists IEEPA among its authorities even as the statute's use for tariff actions remains under judicial review.
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