Modifying The Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements
This Presidential Action modifies existing reciprocal tariffs and outlines procedures for implementing future trade and security agreements.
It updates Annex II of Executive Order 14257 to adjust import duties, citing concerns about large and persistent U.S. goods trade deficits as a threat to national security.
The action also details how the government will manage tariff modifications resulting from framework and final agreements with trading partners, emphasizing a balance between national interests and the need to address the economic and national security challenges posed by trade imbalances.
The Commerce and Trade Representative departments are given implementation authority.
Arguments For
Intended Benefits: Strengthening national security and economy by addressing persistent U.S. goods trade deficits and lack of reciprocity in trade relations.
Evidence cited: References to Executive Orders 14257, 14326, and various proclamations highlight the ongoing need to revise trade policies to alleviate national security threats.
Implementation methods: Modifying Annex II of Executive Order 14257, adjusting the Harmonized Tariff Schedule of the United States (HTSUS), and establishing procedures for implementing framework and final trade agreements.
Legal/historical basis: The order cites several laws, including the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and sections of the Trade Expansion Act of 1962 and the Trade Act of 1974, as legal basis for taking these actions.
Arguments Against
Potential impacts: Negative impacts on certain industries or trading partners could arise from tariff adjustments impacting import costs, leading to price increases.
Implementation challenges: The complexity of implementing modifications across multiple agreements, HTSUS adjustments, and addressing potential legal challenges from affected parties or countries.
Alternative approaches: Exploring solutions outside of tariffs like strengthened domestic industries or renegotiated, non-tariff based trade agreements could achieve some objectives without affecting tariffs.
Unintended effects: Retaliatory tariffs by affected countries or unforeseen economic consequences could diminish benefits outlined in the presidential action.
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (section 232), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, it is hereby ordered:
This introductory section establishes the legal authority for the President's actions, referencing several key acts empowering the executive branch to manage trade matters in cases of national emergency.
The order is based on the President's constitutional powers and several specific trade-related laws.
Section 1. Background. In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), I found that conditions reflected in large and persistent annual U.S. goods trade deficits, including the consequences of those deficits, constitute an unusual and extraordinary threat to the national security and economy of the United States that has its source in whole or substantial part outside the United States. I declared a national emergency with respect to that threat, and to deal with that threat, I imposed certain ad valorem duties that I deemed necessary and appropriate. In Annex II to Executive Order 14257, I set forth a list of certain goods that, in my judgment, should not be subject to the ad valorem rates of duty imposed pursuant to that order.
This section provides context by referring to prior Executive Order 14257, which declared a national emergency due to significant U.S. goods trade deficits.
It explains that the existing tariffs were imposed to address national security concerns and explains the prior actions taken.
This section lays the foundation for the current order explaining the ongoing situation and the need to address it.
In section 4 of Executive Order 14257, section 5 of Executive Order 14326 of July 31, 2025 (Further Modifying the Reciprocal Tariff Rates), and other Executive Orders issued to address the national emergency declared in Executive Order 14257, I directed various officials to monitor the circumstances involving the emergency declared in Executive Order 14257 and to recommend to me additional action that would more effectively deal with the emergency conditions described in Executive Order 14257. Based on this monitoring, among other things, I have received additional information and recommendations from these officials. After considering the information and recommendations these officials have provided to me, among other things, I have determined that it is necessary and appropriate to modify Annex II to Executive Order 14257 as shown in the updated version of Annex II that is attached to this order. In my judgment, these modifications are necessary and appropriate to deal with the national emergency declared in Executive Order 14257.
This section details ongoing efforts to monitor the effects of previous executive orders and discusses the receipt of new information and recommendations.
The President outlines the resulting conclusion to implement changes reflected in the attached Annex II of the order to more effectively address the national emergency.
Further, in section 4(c) of Executive Order 14257, I noted that I might further decrease or limit in scope the duties imposed under Executive Order 14257, as amended, if any trading partner takes significant steps to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters. Accordingly, I later temporarily suspended the individual ad valorem rate of duty for certain trading partners to reflect the fact that some trading partners had signaled a willingness to undertake meaningful economic and national security commitments with the United States designed to combat the emergency declared in Executive Order 14257. In Executive Order 14326, I noted that certain foreign trading partners had agreed, or were on the verge of agreeing, to meaningful trade and security agreements with the United States, with the conclusion of the agreements to be completed in the future.
This section explains that the President's previous orders allowed for reductions in tariffs if trading partners demonstrate willingness to align on economic and security matters.
It acknowledges instances where tariffs were temporarily suspended and the anticipation of future trade agreements.
In my judgment, it is necessary and appropriate to take steps contemplated in certain current and forthcoming trade and security framework agreements (framework agreements) between a foreign trading partner and the United States. I determine that any modification of tariffs required to implement current and forthcoming framework agreements is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 and to reduce or eliminate the threats to national security found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended; and Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States). Except in rare circumstances, I will refrain from narrowing the scope of the reciprocal tariff or any relevant section 232 tariff before the conclusion of a final trade and security agreement (final agreement) between the foreign trading partner and the United States.
The President justifies the need to consider existing and future trade agreements as crucial for dealing with the national security emergency.
This section highlights the connection between tariff modifications and existing proclamations that address metal imports and auto imports.
It declares a preference for holding off on tariff reductions until final agreements with trading partners are successfully concluded.
For example, the United States and the European Union recently announced a landmark “Framework on an Agreement on Reciprocal, Fair, and Balanced Trade” (Framework Agreement). In the joint statement announcing the Framework Agreement, the United States committed to reduce the reciprocal tariff imposed under Executive Order 14257, as amended, on certain products of the European Union to zero percent and to reduce tariffs imposed under section 232 for automobiles and automobile parts originating from the European Union if the European Union takes certain steps. In my judgment, it is necessary and appropriate to implement the tariff modifications described in the Framework Agreement. These modifications are necessary and appropriate to deal with the national emergency declared in Executive Order 14257 and to reduce or eliminate the threat to national security found in Proclamation 9888, as amended.
The President uses the U.S.-EU Framework Agreement as an example to illustrate the process of tariff reduction based on reciprocal trade commitments.
The agreement outlines conditions for reducing tariffs on both reciprocal and section 232 tariffs (related to autos and auto parts) to zero.
The President explains how this aligns with the overall goal of addressing national security concerns.
Similarly, I determine that it is necessary and appropriate to implement the terms of any final agreement between a foreign trading partner and the United States related to the national emergency declared in Executive Order 14257. In my judgment, the modifications required to implement the terms of such a final agreement are necessary and appropriate to deal with the national emergency declared in Executive Order 14257 and to reduce or eliminate the threats to national security I have found pursuant to section 232.
This section reinforces the commitment to implement tariff modifications as part of final agreements with trading partners.
The President affirms the necessity of these modifications based on a national security rationale derived from section 232.
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. My willingness to reduce the reciprocal tariff to zero percent for a given import or to modify tariffs imposed under section 232 will depend on numerous factors, including the scope and economic value of a trading partner’s commitments to the United States in its agreement on reciprocal trade, the national interests of the United States, the need to deal with the national emergency declared in Executive Order 14257, and the need to reduce or eliminate the threats to national security I have found pursuant to section 232. The list of imports for which I may be willing to provide a zero percent reciprocal tariff rate is set forth in the Annex to this order entitled “Potential Tariff Adjustments for Aligned Partners,” which contains products that cannot be grown, mined, or naturally produced in the United States or grown, mined, or naturally produced in sufficient quantities in the United States to satisfy domestic demand; certain agricultural products; aircraft and aircraft parts; and non-patented articles for use in pharmaceutical applications. Given the complex, fact-specific, and sensitive nature of negotiations and the national emergency declared in Executive Order 14257, among other relevant considerations, the imports that might receive a reciprocal tariff rate of zero percent may be different for each final agreement between a foreign trading partner and the United States.
This section clarifies the President's approach towards framework versus final agreements, indicating that while generally preferring final agreements, exceptions are possible.
The factors considered for tariff reductions are highlighted, and a list of qualifying import categories is mentioned.
It ends by emphasizing the flexible and case-by-case nature of negotiations.
Sec. 2. Updating Scope of Duties Globally. (a) The updated version of Annex II to Executive Order 14257 is attached to this order and shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 3 days after the date of this order.
(b) The Harmonized Tariff Schedule of the United States (HTSUS) shall be modified as provided in Annex I to this order. These modifications shall enter into effect on the date set forth in Annex I to this order.
This section details the implementation of the tariff changes.
Subsection (a) states that the updated Annex II will immediately affect goods imported three days after the order's release.
Subsection (b) mandates modifications to the HTSUS as outlined in Annex I, specifying the effective date within Annex I.
Sec. 3. Framework Agreements. (a) Upon the conclusion of any framework agreement of a kind described in section 1 of this order, the Secretary of Commerce and the United States Trade Representative shall determine whether the United States must take any action to implement such framework agreement. Doing so shall include determining whether any condition or conditions to an action by the United States has occurred or will occur before the relevant action by the United States.
(b) If the Secretary of Commerce and the United States Trade Representative determine that an action must be taken to implement a framework agreement pursuant to subsection (a) of this section and that any condition or conditions to such action have occurred or will occur before the relevant action by the United States, the Secretary of Commerce and the United States Trade Representative shall take the necessary and appropriate actions to implement such framework agreement in accordance with this order.
(c) The Secretary of Commerce and the United States Trade Representative shall act in a manner consistent with the national interests of the United States, the purpose of this order, the need to deal with the national emergency declared in Executive Order 14257, and the need to reduce or eliminate the threats to national security I have found pursuant to section 232.
This section outlines the process for managing framework agreements.
Section (a) designates the Secretaries of Commerce and the U.S. Trade Representative as the responsible parties to review, determine, and implement any required actions arising from framework agreements, including reviewing the conditions that trigger such an action.
Section (b) reiterates the action to be taken, should such actions be required, to implement the agreement.
Section (c) instructs these Secretaries to act in accordance with the best interests of the United States, as outlined in the national security emergency declaration of 14257, and section 232.
Sec. 4. Final Agreements. (a) Upon the conclusion of any final agreement of a kind described in section 1 of this order, the Secretary of Commerce and the United States Trade Representative shall take the necessary and appropriate actions to implement the final agreement in accordance with this order.
(b) In implementing any final agreement, the Secretary of Commerce and the United States Trade Representative shall act in a manner consistent with the national interests of the United States, the purpose of this order, the need to deal with the national emergency declared in Executive Order 14257, and the need to reduce or eliminate the threats to national security I have found pursuant to section 232.
This section details the implementation procedure for final agreements, similar to section 3 but with a focus on final, rather than framework, agreements.
It specifies the actions required upon conclusion of final agreements, again outlining the need to align actions with the national security objectives.
Sec. 5. Monitoring and Recommendations. (a) The Secretary of Commerce and the United States Trade Representative, in consultation with any officials they deem appropriate, shall continue to monitor the conditions underlying the national emergency declared in Executive Order 14257, including the U.S. trade deficit, the lack of reciprocity in our bilateral trade relationships, disparate tariff rates and non-tariff barriers, U.S. trading partners’ economic policies that suppress domestic wages and consumption imports, the strength of our domestic manufacturing base, the strength of our defense industrial base, and any other relevant factors. The Secretary of Commerce and the United States Trade Representative shall, from time to time, update me on the status of these conditions.
(b) The Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, the Senior Counselor for Trade and Manufacturing, and the Assistant to the President for National Security Affairs, shall continue to inform me of any circumstance that, in their opinion, might indicate the need for further action and shall continue to recommend to me additional action that, in their opinion, will more effectively deal with the emergency declared in Executive Order 14257.
(c) The Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, the Senior Counselor for Trade and Manufacturing, and the Assistant to the President for National Security Affairs, shall advise me of the conclusion of any agreement on reciprocal trade with a particular trading partner.
This section details ongoing monitoring and reporting obligations.
Subsection (a) mandates continued monitoring of several economic and security factors.
Subsection (b) requires regular updates and recommendations for future actions.
Subsection (c) requires notification of completed reciprocal trade agreements.
Sec. 6. Delegation. (a) Consistent with applicable law, the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative are directed and authorized to take all necessary actions to implement and effectuate this order and any actions taken under section 3 or section 4 of this order — including through temporary suspension or amendment of regulations or through notices in the Federal Register and by adopting rules, regulations, or guidance — and to employ all powers granted to the President, including those granted by IEEPA and section 232, as may be necessary to implement and effectuate this order.
(b) The Secretary of Commerce and the United States Trade Representative, in consultation with the Commissioner of U.S. Customs and Border Protection (CBP), the Chair of the United States International Trade Commission, and any other senior official they deem appropriate, shall determine whether modifications to the HTSUS are necessary to effectuate this order and any actions taken under section 3 or section 4 of this order and may direct such modifications through notice in the Federal Register.
(c) If implementation of a framework agreement or final agreement of a kind described in section 1 of this order requires a refund of duties collected, CBP shall provide the refund to the extent consistent with law. Any refunds shall be processed pursuant to applicable law and CBP’s standard procedures for such refunds.
(d) Consistent with applicable law, the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative may redelegate any of these functions within their respective department or agency.
(e) All executive departments and agencies shall take all appropriate measures within their authority to implement this order.
This section outlines the delegation of authority for order implementation.
Subsection (a) grants broad authority to several Secretaries to execute the order.
Subsection (b) addresses HTSUS modifications through a notice in the Federal Register.
Subsection (c) covers duty refunds.
Subsection (d) allows for internal redelegations and Subsection (e) affirms the responsibility of other parts of the executive branch to support and implement the action.
Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of Commerce.
This section addresses general provisions and limitations.
Subsection (a) clarifies that this order does not override existing legal authorities.
Subsection (b) underscores the need for legal compliance and budget availability.
Subsection (c) states that this order does not grant any legal right.
Subsection (d) specifies the Department of Commerce's responsibility for the cost of publishing the order.
DONALD J. TRUMP
THE WHITE HOUSE,
September 5, 2025.
This section indicates the President's signature and the date of the order.
ANNEX I
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 3 days after the date of this order, subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS shall be amended by inserting in numerical order the following provisions of the HTSUS:
Annex I specifies additions to be made to the HTSUS (Harmonized Tariff Schedule of the United States), effective three days after the release of this President's order.
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 3 days after the date of this order, subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS shall be amended by removing the following provisions of the HTSUS:
This section of Annex I specifies provisions to be removed from the HTSUS, along with the effective date.
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