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

What it is

Executive Order 14346, signed September 5, 2025, is a presidential directive that updates the list of goods exempt from the “reciprocal tariffs” imposed under a prior April 2025 emergency order and establishes a formal process for adjusting tariffs when the United States concludes trade and security agreements with foreign countries. It operates under emergency economic powers (IEEPA) and national security trade law (Section 232).

What it changes

The order replaces the previous Annex II exemption list from the April 2025 reciprocal tariff order with an updated version, effective three days after signing (September 8, 2025), changing which specific goods are shielded from the broad tariff rates. It creates a two-track system for tariff reductions tied to negotiations: “framework agreements” (preliminary deals) generally do not unlock tariff relief until a final agreement is signed, with the EU–US trade framework cited as an example where certain EU goods could see tariffs reduced to zero. A separate annex titled “Potential Tariff Adjustments for Aligned Partners” lists product categories — including goods the U.S. cannot produce domestically in sufficient quantities, certain agricultural products, aircraft and parts, and non-patented pharmaceutical articles — that may be eligible for a zero percent reciprocal tariff rate under a completed final agreement. The Secretary of Commerce and the U.S. Trade Representative are jointly authorized to implement tariff changes and modify the Harmonized Tariff Schedule as deals are finalized, and Customs and Border Protection may issue refunds of previously collected duties if an agreement requires it.

Who is affected

U.S. importers and businesses that pay tariffs on foreign goods will see immediate changes depending on whether their specific products appear on the updated exemption list, with some goods becoming newly exempt or newly subject to tariffs as of September 8, 2025. Foreign governments and their exporters — particularly those in active negotiations with the United States, such as EU member states — face a framework where tariff relief is contingent on concluding a binding final agreement rather than a preliminary deal. U.S. consumers and industries that rely on imported goods not produced domestically (including certain pharmaceuticals, aircraft parts, and agricultural products) are the parties most likely to benefit if and when final agreements are reached.