New Executive Order Revises U.S. Reciprocal Tariffs, Effective Sept. 8

Trade Update • Sept. 8, 2025

Key Points

• President Trump signed an executive order on September 5, 2025, modifying the scope of reciprocal tariffs first announced in April 2025.
• The fact sheet highlights additions and removals of products exempted from tariffs, targeting key sectors such as critical minerals, pharmaceuticals, and aircraft parts.
• A new annex, Potential Tariff Adjustments for Aligned Partners (PTAAP), lists products eligible for tariff reductions if trading partners conclude reciprocal trade and security agreements.
• The U.S. Customs and Border Protection (CBP) updated guidance to implement these changes, effective September 8, 2025.
• Senior officials, including the Secretary of Commerce and U.S. Trade Representative, are empowered to implement agreements and update tariff classifications as necessary.

President Donald J. Trump signed an executive order on September 5, 2025, updating reciprocal tariffs to address persistent U.S. trade deficits that threaten national security. The order revises the list of goods exempt from tariffs and creates a framework for trade and security agreements with U.S. partners.

Supported by a fact sheet, it highlights efforts to strengthen the economy and protect American workers.

The U.S. Customs and Border Protection (CBP) has also issued guidance to ensure smooth enforcement of the updated reciprocal tariffs, which will take effect on September 8, 2025.

Reciprocal Tariff Changes and New Framework

The executive order revises the existing tariff exemptions:

• Added to exemptions: bullion-related goods, certain critical minerals, and pharmaceutical products under investigation, removing them from tariff coverage
• Removed from exemptions: aluminum hydroxide, resin, and silicone products, which are now subject to reciprocal tariffs

It introduces the PTAAP annex, listing products eligible for reduced tariffs through reciprocal agreements. These include:

• Aircraft and aircraft parts
• Generic pharmaceuticals and ingredients
• Unavailable natural resources and related products
• Certain agricultural products not grown or produced enough in the U.S.

Trading partners must conclude deals that help reduce the trade deficit emergency to qualify for tariff reductions on these products.

Specific tariff codes were amended effective three days after the order, with detailed lists available in Annex II and III.

Economic and National Security Goals

The fact sheet outlines how these tariff changes:

• Help protect American workers and industries by addressing non-reciprocal trade practices causing the trade deficit
• Reinforce the domestic manufacturing base and critical supply chains essential for national security
• Reflect previous tariff actions targeting China (including a 20% tariff addressing opioids), Mexico and Canada (tariffs addressing illicit drug flows), Brazil (additional tariffs over foreign policy concerns), and India (penalties for Russian oil purchases)
• Highlight significant trade deals with major partners like the European Union, Japan, and the United Kingdom that include large investment commitments and expanded U.S. market access
• Encourage reshoring of jobs and strengthen fair economic competition

CBP Guidance

The CBP issued guidance to implement the tariff revisions effectively:

• The updated Annex II defines products exempt from reciprocal tariffs starting September 8, 2025. Importers must correctly classify goods using HTSUS subheading 9903.01.32 to claim exemptions.
• Importers who pre-filed entries using exemptions but whose goods have new tariff applicability must correct filings within 10 days of cargo release to align with the updated rules.
• The Secretary of Commerce and U.S. Trade Representative will coordinate with CBP to monitor compliance, modify tariff schedules as trade agreements evolve, and provide refunds where required by implementing framework or final agreements.
• CBP will continue releasing additional messages and guidance to ensure clarity and smooth enforcement of the reciprocal tariffs system.

If you have trouble filing an entry summary, reach out to your CBP client representative or the ACE Help Desk. For questions, contact the Trade Remedy inbox at traderemedy@cbp.dhs.gov.

Important Actions for Importers

• Classify goods properly under the updated Annex II to determine tariff exemption eligibility.
• Declare the correct secondary classification code (subheading 9903.01.32) for exempt products to avoid unnecessary tariffs.
• Correct any entries for products added or removed from the exemption list within 10 days of cargo release to comply with CBP regulations.
• Ensure shipments entered for consumption on or after September 8, 2025, follow the new tariff scope.
• Monitor updates from CBP and U.S. trade authorities for any changes in tariff policies or enforcement procedures.
• Work closely with customs brokers or trade compliance experts to navigate the complex tariff modifications.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.