US tariffs: Trump signs order granting exemptions; zero duties begin Monday for aligned partners

US President Donald Trump has signed an executive order that will grant tariff exemptions from Monday to trading partners who reach agreements on industrial exports. The move covers offering exemptions covers key materials such as nickel, gold, pharmaceutical compounds and chemicals, according to a Reuters report.

Since assuming power in January, Trump has unleashed a global trade war, announcing reciprocal tariffs on most major countries around the world. After announcing high tariffs on most countries in April, the Trump administration later used these as tools to negotiate trade deals which it says are favourable to the US. While some trade deals have been announced, exact details of many are yet to emerge.

The new directive identifies more than 45 categories of goods that will qualify for zero import tariffs from “aligned partners” who agree to framework deals reducing Trump’s “reciprocal” tariffs and duties imposed under the Section 232 national security law.

It also brings US tariffs into line with commitments under existing arrangements with allies including Japan and the European Union. The exemptions for countries covered by these agreements will begin at 12:01 AM EDT (0401 GMT) on Monday.



In the order, Trump notes that any decision to reduce tariffs will hinge on the “scope and economic value of a trading partner’s commitments to the United States in its agreement on reciprocal trade” and broader US national interests.

According to the White House, the tariff cuts apply to goods that “cannot be grown, mined, or naturally produced in the United States” or where domestic production is insufficient. Officials said the order also introduces carveouts for certain agricultural products, aircraft and parts, and non-patented pharmaceutical articles.

Once a reciprocal trade deal is in place, the US trade representative, Commerce Department and customs will have authority to waive tariffs on qualifying imports without requiring a new executive order, a White House official added.

The zero-tariff list includes graphite and different forms of nickel, crucial for stainless steel manufacturing and electric vehicle batteries. It also covers pharmaceutical compounds such as lidocaine, used as an anaesthetic, and reagents used in medical diagnostic testing, as per Reuters.

Gold imports in multiple forms, including powders, leaf and bullion, are also exempted. Switzerland, a major supplier, has been hit by tariffs of 39% as it has not yet secured a deal with Washington.

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Other categories benefiting from the changes are natural graphite, neodymium magnets and LEDs. At the same time, the order scraps earlier exemptions for certain plastics and polysilicon, a material vital for solar panels.