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TMTPOST -- U.S. President Donald Trump on Friday took actions to pave the way for possible exemptions from reciprocal tariffs under agreements finalized with trading partners despite uncertain fate of these levies amid legal battles.
Credit：Freepik
Trump signed an executive order to modify the scope of reciprocal tariffs and establish procedures for implementing trade and security agreement. The president determined any modification of tariffs required to implement current and forthcoming framework agreements is necessary and appropriate to the deal with the national emergency declared in his previous executive order citing the relevant emergency law, according to the order released by the White House on Friday.
The order attached a list of imports of which Trump may be willing to provide a zero reciprocal tariff rate. The list identifies more than 45 categories for zero import tariffs from "aligned partners" who clinch framework pacts to cut reciprocal tariffs and duties imposed under Section 232 of the Trade Expansion Act of 1962 aiming to protect national security.
The list contains products that cannot be grown, mined, or naturally produced in the U.S. or grown, mined, or naturally produced in sufficient quantities in the country to satisfy domestic demand; certain agricultural products; aircraft and aircraft parts; and non-patented articles for use in pharmaceutical applications.
Specifically, the zero-tariff items identified in the order include graphite and various forms of nickel, a key ingredient in stainless steel manufacturing and electric vehicle (EV) batteries, various types of gold imports. Natural graphite, neodymium magnets, light-emitting diodes (LEDs) and certain plastics and polysilicon, a key component of solar panels, are also be included in the list.
「Though I am generally unwilling for framework agreements to narrow the scope of the reciprocal tariffs or modify any relevant section 232 tariff before the conclusion of a final agreement, final agreements with the United States may include such modifications,」 said Trump in the order. He stated his willingness to exempt imports from reciprocal tariffs or to reduce sectoral tariffs under Section 232 will depend on numerous factors, including the scope and economic value of a trading partner』s commitments to the U.S. in its agreement on reciprocal trade.
The order suggested Trump could implement zero reciprocal tariffs as soon as Monday as the modification is set to come into effect at at 12:01 a.m. eastern daylight time (EDT) three days after the date of this order.
The order came as Trump and his team determined to prevent trade deals with trading partners from increasing legal challenges to the existing tariffs in place.
Earlier Friday, U.S. Commerce Secretary Howard Lutnick echoed Trump』s stance. He said in a interview that the trade deals will stay in place even though the Trump administration is under legal fight around tariffs.
"These big deals are going to stay. We have lots of other authorities that the president can use," Lutnick said. "The 232s — so everything we just did with Japan — that holds, right? That's durable, that stays. Europe - that stays. These are autos, pharmaceuticals, semiconductors, those all stay."
The Trump administration is taking steps to overturn a federal appeals court』s ruling that the president』s use of emergency powers to impose worldwide tariffs is unlawful. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C. found Trump overstepped his presidential powers with his global tariffs.
The court said in a filling on August 29 that it agreed that the International Emergency Economic Powers Act of 1977 (IEEPA) 』s grant of presidential authority to 「regulate」 imports does not authorize the tariffs imposed by his five executive orders. The ruling shot down most of tariffs that the Trump administration has implemented so far this year, including reciprocal tariffs on all the trading partners and trafficking tariffs hitting Canada, Mexico and China.
The Trump administration on Wednesday night appealed to the Supreme Court and urging the court to quickly take up the case in bid to protect his worldwide tariffs, according to recent reported fillings . The administration submitted a motion, asking the Supreme Court to expedite consideration of the case so that oral arguments can be heard heard as soon as the first week of November.
