Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements

The order updates Annex II to Executive Order 14257 — the list of goods excluded from the reciprocal tariffs — effective three days after signing. It also modifies the Harmonized Tariff Schedule on dates specified in an attached annex. A new list called "Potential Tariff Adjustments for Aligned Partners" identifies categories of products — including goods that cannot be produced in sufficient U.S. quantities, certain agricultural products, aircraft and parts, and non-patented pharmaceutical inputs — that could receive a zero percent reciprocal tariff rate under a qualifying trade agreement. It delegates authority to the Secretary of Commerce and the U.S. Trade Representative to implement both framework agreements (preliminary deals) and final trade and security agreements.

The order draws a clear line: the administration will generally not reduce reciprocal tariffs or Section 232 tariffs (national-security tariffs on steel, aluminum, autos, and copper) until a final trade and security agreement is concluded. Framework agreements alone — such as the announced EU framework — do not by themselves trigger tariff reductions; the EU must take specified steps, and the Secretary of Commerce and USTR must determine those steps have been satisfied before acting.

U.S. importers of goods covered by the updated Annex II exemption list, foreign exporters and trading partners — particularly the European Union — negotiating trade and security agreements with the United States, and domestic industries that compete with imports subject to the reciprocal and Section 232 tariff regimes.

Importers whose goods are added to or removed from the Annex II exemption list face immediate tariff changes. The new framework creates a direct legal pathway for major trading partners like the EU to earn zero percent tariff rates on specific products, which would affect prices across autos, aircraft, pharmaceuticals, and agricultural goods.

The Annex II update takes effect automatically three days after signing. For future tariff reductions, the implementation arc is staged: Commerce and USTR assess whether a framework or final agreement is concluded and whether any preconditions have been met; if so, they act to modify tariffs, including through Federal Register notices and HTSUS amendments directed to U.S. Customs and Border Protection. If a refund of previously collected duties is required under a final agreement, CBP processes refunds under standard procedures. Commerce and USTR must continuously monitor trade-deficit conditions and report back to the President.