U.S. President Donald Trump signed an executive order on September 5 introducing “reciprocal tariff rates.” The move allows the U.S. to reduce tariffs on certain qualifying imports to 0%, with the order set to take effect on September 8.
Products That Qualify
According to the order, eligible items include those that cannot be cultivated, mined, or produced sufficiently in the U.S. Products cited include:
- Graphite
- Tungsten
- Uranium
- Gold bars
- Special spices
- Coffee
- Antibiotics
Conditional on Trade Agreements
Trump clarified that tariff exceptions would depend on “the scope and value of commitments” made by U.S. trading partners, along with national interests and the underlying national emergency tied to tariffs. Final agreements with specific countries will determine the range of goods qualifying for 0% tariffs.
Japan’s Recent Deal a Case in Point
The U.S. recently signed a “final agreement” with Japan, ensuring most-favored-nation status for pharmaceuticals and semiconductors while maintaining 0% tariffs on aircraft and aircraft parts. Analysts say this illustrates how the new order could be applied in future trade negotiations.
