Trump signs tariff order, may grant 'most-favoured nation' rates on imports

The order lists over 45 categories of goods that could get zero tariffs if partner nations strike reciprocal trade deals, covering metals, drugs, aircraft parts and other imports

The White House said on Friday (September 5) that President Donald Trump signed an executive order to revise reciprocal tariffs and set up new rules for implementing trade and security agreements.

 

According to officials, the order lists products on which Trump may apply tariffs only to most-favoured nations. These products fall into four groups, including certain types of aircraft and aircraft parts, as well as generic medicines and their ingredients.

 

The order also opens the door for exemptions. From Monday, US trading partners that strike framework deals with Washington on industrial goods such as nickel, gold, and other metals, as well as chemicals and pharmaceutical compounds, could see zero tariffs on more than 45 categories of imports, Reuters reported.

 

A White House official said the exemptions cover items that “cannot be grown, mined, or naturally produced in the United States” or are not available in sufficient amounts to meet local demand. Some carve-outs will also apply to agricultural products, aircraft parts, and generic drug ingredients.

 

Imports such as graphite, nickel used in stainless steel and electric vehicle batteries, anaesthetics like lidocaine, reagents for medical tests, and different types of gold are included. The order also removes earlier exemptions on some plastics and polysilicon, a key material for solar panels.     

 

Conditions for tariff reductions

 

Trump said that lowering tariffs depends on the “scope and economic value of a trading partner’s commitments” in reciprocal trade agreements and on US national interests.

 

If a country has a reciprocal deal with Washington, the US Trade Representative, Commerce Department, and customs officials can waive tariffs without requiring another executive order.

 

Trade disputes and ongoing legal battle

 

Trump has spent much of his first seven months in office raising tariffs to reshape the global trading system, reduce US trade deficits, and pressure countries into making concessions.

 

At the same time, his administration is fighting legal challenges. This week, the White House asked the US Supreme Court to quickly take up a case that questions Trump’s authority to impose sweeping import tariffs under federal law, Associated Press reported.     

 

  The request came after the US Court of Appeals for the Federal Circuit ruled that most of Trump’s tariffs were an unlawful use of emergency powers, though it left them in place for now.

 

Solicitor General D John Sauer, in a petition filed late Wednesday, urged the justices to hear the case in early November. The filing is expected to be formally added to the court’s docket soon. 

(With agency inputs)