US President Donald Trump has signed an executive order on Sept 5 reshaping his tariff programme, exempting key minerals such as gold bullion, graphite, tungsten and uranium, while imposing fresh levies on silicone products, reports Bloomberg.
The changes are set to take effect tomorrow under an executive order issued on Friday.
Trump’s directive could also speed implementation of bespoke trade deals between the US and other countries, making it easier for Washington to lift tariffs on aircraft parts, generic pharmaceuticals and certain products that can’t be grown, mined or naturally produced domestically – such as specialty spices and coffee, as well as obscure metals.
The measure formalises a plan to exempt gold bars from tariffs, after a US Customs and Border Protection ruling weeks ago stunned traders and caused confusion by indicating bullion would be subject to import taxes.
Changes were made on recommendations from US officials, the president’s order says. According to the measure, “these modifications are necessary and appropriate to deal with the national emergency” that Trump first declared when imposing his country-level tariffs in April.
Under the procedural shift, the US Trade Representative and Commerce Department would be empowered to take action to implement framework agreements with other nations, such as the deals Trump has inked with the European Union, Japan and South Korea. That would remove the need for Trump to enact those changes through his own executive orders.
The EU’s trade chief, Maros Sefcovic, welcomed the step, writing yesterday in a post on X that it “paves the way for car and parts tariffs to drop to 15 per cent and secures key exemptions from the 15pc cap.”
The EU has been anxious to avoid higher US tariffs on its auto sector. While Friday’s order doesn’t provide immediate relief, it’s being seen as a positive step.
Trump’s global tariffs are the centrepiece of his sweeping effort to address trade imbalances that he’s decried as a threat to national security. Before ramping up dozens of country-specific rates last month, the president struck agreements with several economies to set lower rates in exchange for foreign capitals removing barriers on American goods.
The tariffs, and some of the deals, were put together in a frenzied manner over the course of several months and prompted complaints that they could disrupt key markets and drive up the price of goods that cannot be grown or produced in the US.
Reciprocal tariffs are being lifted for a slew of minerals, including critical materials used in aerospace, consumer electronics, medical devices and other technology.
Pharmaceuticals such as psuedoephedrine, antibiotics and other medications – which are already subject to a separate ongoing Commerce Department trade investigation – also are winning fresh relief.
In addition to silicone products, the president is extending his reciprocal tariffs to resin and aluminium hydroxide.
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