President Donald Trump has revealed a decrease in import tariffs for a specific group of trade partners. An executive order signed on Friday indicated that nations that establish trade agreements with the United States on industrial products—such as nickel, gold, various metals, pharmaceuticals, and chemical compounds—will benefit from tariff exemptions.

In the first seven months of his presidency, Trump intensified global trade tensions by increasing import tariffs. His objective was to lessen the US trade deficit and secure concessions from partner nations. Nevertheless, with his most recent order, he allowed for exemptions for “aligned partners” by lowering tariffs.

Zero tariffs on over 45 products

The recent order has declared zero import tariffs on more than 45 categories of products. These benefits will be available only to countries that establish structural agreements with the United States to lower the “reciprocal tariffs” that were imposed by Trump, along with taxes under Section 232.

According to the White House, this decision aligns with current U.S. trade agreements, especially those with allies such as Japan and the European Union. The new tariff exemptions are set to take effect on Monday, as stated in the order.

Exemptions for essential minerals and pharmaceuticals

• The products exempt from tariffs include—
• Graphite and various forms of nickel (a crucial component in stainless steel and electric vehicle batteries)
• Gold imports (in both powder and bar forms)
• Specific generic drug ingredients (including the anesthetic lidocaine and diagnostic compounds)

Natural graphite, neodymium magnets, and LEDs will also be free from tariffs. However, certain plastics and polysilicon (a vital component in solar panels) will continue to be subject to tariffs as they were previously.

Some nations, like Switzerland, have not yet signed a trade agreement with the United States. Consequently, the 39% tariff on their gold imports remains effective, posing a significant challenge for the country.

Officials from the White House indicate that this new order will enable the U.S. Trade Representative, the Commerce Department, and Customs to efficiently finalize the tariff waiver process without requiring a new executive order.