Fact Sheets

# Fact Sheet: President Donald J. Trump Modifies the Scope of Reciprocal Tariffs and Establishes Procedures for Implementing Trade Deals

The White House
September 5, 2025

STRENGTHENING THE ECONOMY AND NATIONAL SECURITY THROUGH TARIFFS AND TRADE DEALS: Today, President Donald J. Trump signed an Executive Order modifying the scope of the reciprocal tariffs that he first announced on April 2, 2025, and establishing a framework to implement agreements with our trading partners.

- President Trump is strengthening the international economic position of the United States and protecting American workers by modifying the scope of reciprocal tariffs.
  - On April 2, the President imposed historic global reciprocal tariffs to address the national emergency posed by our large and persistent trade deficit, which is driven by the absence of reciprocity in our trade relationships and other harmful policies perpetuated by other countries, and by the consequences of that trade deficit.
  - These tariffs have applied to nearly all imports, except for certain classes of products, such as articles subject to 50 U.S.C. § 1702(b); articles potentially subject to other tariff regimes like pharmaceuticals, semiconductors, and lumber articles; and articles listed in Annex II of Executive Order 14257.
  - The President has now determined that it is necessary and appropriate to modify the scope of the articles listed in Annex II to deal with the national emergency and protect America’s economic and national security.
    - Some goods have been added to Annex II, meaning they will no longer be subject to reciprocal tariffs. These goods include bullion-related articles and certain critical minerals and pharmaceutical products subject to pending Section 232 investigations.
    - Some goods have been removed from Annex II, meaning they are now subject to reciprocal tariffs. These goods include certain aluminum hydroxide, resin, and silicone products.
  - A modified Annex II is attached to today’s Order, and the modifications will take effect on September 8, 2025.
- President Trump is advancing reciprocal trade by establishing a framework to implement existing and future trade deals.
  - Today’s Order establishes the “Potential Tariff Adjustments for Aligned Partners” (PTAAP) Annex, which contains the list of products for which the President may be willing to apply only the Most-Favored-Nation (MFN) tariff upon the conclusion of any future reciprocal trade and security deal. These products fall in four categories:
    - certain aircraft and aircraft parts;
    - certain generic pharmaceuticals and their ingredients;
    - unavailable natural resources and closely related derivative products; and
    - certain agricultural products not grown or produced in sufficient quantity in the United States to meet domestic demand.
  - To earn a reduction of reciprocal tariffs for some or all of the products listed in the PTAAP Annex, a trading partner must conclude a deal with the United States that helps mitigate the national emergency relating to the trade deficit. Additionally, the President will evaluate the extent of a trading partner’s commitments to address U.S. trade concerns, among other things, when determining which products on the PTAAP Annex qualify for a tariff reduction.
  - The President delegated to senior officials, including the Secretary of Commerce and the United States Trade Representative, the authority to implement deals with our trading partners.

TAKING DECISIVE ACTION TO ADDRESS A NATIONAL EMERGENCY: President Trump is modifying the scope of reciprocal tariffs and streamlining the implementation of trade deals to protect U.S. national security interests, reinforce domestic supply chains, and bolster America’s industrial base.

- President Trump has taken several tariff actions in the interests of the American people, including:
  - Imposing a 20% tariff on China to address the synthetic opioid supply chain, a 25% tariff on Mexico to address the flow of illicit drugs across our southern border, and a 35% tariff on Canada to address the flow of illicit drugs across our northern border.
  - Imposing reciprocal tariffs, with many trading partners subject to individualized, ad valorem reciprocal tariffs, to rectify trade practices that contribute to America’s exploding annual goods trade deficit, and to remedy the consequences of the United States’ exploding trade deficit.
  - Imposing an additional 40% tariff on Brazil following recent actions of the Government of Brazil that threaten the national security, foreign policy, and economy of the United States.
  - Imposing an additional 25% tariff on imports from India in response to its continued purchase of Russian Federation oil.
  - Imposing Section 232 tariffs on imports of automobiles and auto parts, copper, steel, and aluminum to protect and strengthen America’s industries, which are critical to America’s economic welfare and national security.
- These actions protect national security, strengthen supply chains, and support American workers and industries.
- Today’s Order revises Annex II to more effectively address the national emergency declared in Executive Order 14257 and establishes a process to streamline the implementation of trade deals with America’s trading partners.
- By taking further action today, President Trump is ensuring America’s trade policies benefit the American people, strengthen national security, and promote economic fairness.

DELIVERING FOR THE AMERICAN PEOPLE: President Trump’s tariff policies have generated significant investment into the United States, strengthening the U.S. economy while addressing unfair trade practices that have disadvantaged American workers for decades.

- By imposing tariffs on countries with nonreciprocal trade practices, President Trump is incentivizing manufacturing on American soil and defending our industries.
- The Trump Administration has worked with America’s trading partners to craft tailor-made trade deals designed to eliminate their most distortive trade practices and to ensure that trading partners align with the United States on key economic and national security matters.
  - In a massive deal with the European Union, the EU has agreed to purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028, while accepting a 15% tariff rate, and charging American companies zero.
  - Japan has agreed to invest $550 billion in the United States to rebuild and expand core American industries, as well as to further open its own market to U.S. exports, all while paying a baseline 15% tariff rate.
  - The United States-United Kingdom trade deal includes billions of dollars of increased market access for American exports.
  - Additional trade deals with Indonesia, the Philippines, South Korea, Vietnam, and others will, among other things, protect our industries, open foreign markets, and encourage foreign investment in American industries.
- With billions in reshoring investments already announced, President Trump is bringing manufacturing jobs back to America, revitalizing communities, and strengthening supply chains.
- The Administration will continue to use all available tools to protect our national security, advance our economic interests, and uphold a system of trade based in fairness and reciprocity.

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