US President Donald Trump has signed an executive order allowing tariff exemptions for countries with trade deals, starting Monday. The exemptions cover more than 45 categories, including industrial metals, pharmaceutical compounds, and chemicals. The move comes after Trump imposed steep tariffs during his first seven months in office to reshape global trade and push partners into new agreements.
The order aligns US tariffs with commitments under existing deals with allies like Japan and the European Union. Zero tariffs will apply to imports that the United States cannot produce in sufficient amounts, such as nickel, graphite, and pharmaceutical reagents. According to a White House official, carveouts will also apply to some agricultural goods, aircraft parts, and items used in medicine.
Pakistan, which signed a trade deal with Washington in July, cut reciprocal tariffs from 29 percent to 19 percent. That agreement also opened the door for cooperation on Pakistan’s oil reserves. However, it remains unclear if Pakistan will benefit from Trump’s latest order. Trump said tariff reductions will depend on the scope of commitments in reciprocal deals and their value to US interests.
The exemptions include critical items like graphite, nickel for stainless steel and electric vehicle batteries, and medical compounds such as lidocaine. They also cover different forms of gold, from bullion to powders, which are key imports from countries like Switzerland that have struggled under US tariffs. At the same time, the order eliminates earlier exemptions on plastics and polysilicon, vital for solar panel production.
Trump emphasized that his administration’s trade policy remains focused on protecting US industry while rewarding aligned partners. Officials confirmed that the order empowers the US Trade Representative and Commerce Department to waive tariffs on covered imports without needing a new directive from the president. The exemptions are set to take effect at 12:01 a.m. EDT on Monday.