STRENGTHENING THE ECONOMY AND NATIONAL SECURITY THROUGH TARIFFS AND TRADE DEALS
Today, President Donald J. Trump took a significant step by signing an Executive Order that adjusts the dynamics of the reciprocal tariffs he initially introduced on April 2, 2025. This adjustment notably exempts specific qualifying agricultural products from these tariffs.
- The President is reinforcing both the U.S. economy and national security with this modification of reciprocal tariffs.
- On April 2, Trump unveiled global reciprocal tariffs in response to what he deemed a national emergency linked to our chronic trade deficits. He attributed these deficits to the lack of reciprocity in our bilateral trade ties, among other factors. Importantly, he opted not to impose reciprocal tariffs on certain goods, including critical minerals and energy products.
- On September 5, the President revised the reciprocal tariffs further. This involved adding certain goods to Annex II of Executive Order 14257, thus exempting them from the tariffs, while also placing other goods under tariff protection. Furthermore, he established a framework for executing existing and future trade agreements and identified specific products likely to remain tariff-free in the future.
- In light of substantial advancements in reciprocal trade discussions—including nine framework agreements, two finalized reciprocal trade contracts, and two investment pacts—along with current domestic demand and production capacity, President Trump has deemed it fitting to further revise the scope of the reciprocal tariffs. Consequently, specific agricultural products that are not cultivated domestically will no longer be subjected to these tariffs.
- This latest Executive Order is a continuation of the President’s efforts to secure more equitable terms in our international trade relationships. The agreements reached thus far aim to bolster domestic production and positively influence the economy at large, particularly by enhancing market access for U.S. agricultural exporters.
- For instance, many of the ongoing trade negotiations involve nations that supply significant quantities of agricultural products that the U.S. does not grow or produce in adequate amounts.
- As a result, the President has decided to exempt certain agricultural items from the reciprocal tariffs, including:
- tropical fruits and juices;
- bananas, oranges, and tomatoes;
- additional fertilizers (not all fertilizers have been subject to these tariffs).
- These exempted products will be included in Annex II of Executive Order 14257, as updated, and will be removed from the “Potential Tariff Adjustments for Aligned Partners” (PTAAP) Annex, where other resources remain that are unavailable within the U.S. due to geological or climatic reasons, as well as generic pharmaceutical inputs and aircraft components.
- The President has indicated a willingness to further lift tariffs on these products contingent upon the successful conclusion of reciprocal trade and security agreements.
The modifications to Annex II and the PTAAP Annex, detailed in today’s Executive Order, will come into effect on November 13, 2025.
ACHIEVING RECIPROCAL TRADE
As he approaches the one-year mark of his second term, President Trump has made significant strides in reinforcing the United States’ economic standing on the global stage by achieving a series of notable victories for American citizens.
- Among his achievements are Agreements on Reciprocal Trade with Malaysia and Cambodia, along with Joint Statements outlining frameworks for such agreements with El Salvador, Argentina, Ecuador, and Guatemala; Thailand and Vietnam; the United Kingdom and European Union; and Switzerland. Additionally, investment agreements have been established with Japan and Korea, while progress continues with numerous other nations.
DELIVERING FOR THE AMERICAN PEOPLE
President Trump’s tariff strategies are yielding significant and enduring benefits for the American populace through assertive and strategic trade negotiations that enhance the U.S. economy and national security while dismantling long-standing inequitable trade barriers.
- By enforcing tariffs on nations that engage in nonreciprocal trade practices, President Trump is fostering manufacturing within the United States and protecting domestic industries.
- The Trump Administration has collaborated with trading partners to develop customized trade agreements aimed at eliminating their most disruptive trade practices, ensuring alignment with U.S. economic and national security priorities.
- In a landmark deal with the European Union, the EU has committed to purchasing $750 billion in U.S. energy and making $600 billion in new investments in the U.S. by 2028, while adopting a 15% tariff rate and imposing zero tariffs on American companies.
- During his historic trip to Asia in October, President Trump secured trade agreements with Malaysia and Cambodia and established reciprocal trade frameworks with Thailand and Vietnam.
- Cambodia has agreed to eliminate tariffs on all U.S. industrial and agricultural goods, thereby unlocking new market opportunities for American producers and workers.
- Malaysia has committed to reducing trade barriers for American exporters and broadening market access for U.S. goods, from vehicles and machinery to dairy and poultry.
- Furthermore, agreements with four Latin American countries enhance market access for U.S. exports by removing tariffs and non-tariff barriers, thus fortifying our economic security ties with these critical neighbors.
- With billions in reshoring investments already announced, President Trump is revitalizing American manufacturing, rejuvenating communities, and strengthening supply chains.
- The Administration remains dedicated to utilizing all available measures to safeguard national security, promote economic interests, and maintain a trade system grounded in fairness and reciprocity.
