FX.co ★ U.S. Tariff Exemptions on Metals, Pharma Begin Today

U.S. President Donald Trump has enacted an executive order commencing Monday, aimed at providing tariff exemptions for trading partners that establish preliminary agreements on exports in key industrial sectors such as metals, pharmaceuticals, and chemicals. The directive outlines over 45 categories that will qualify for zero import tariffs from "aligned partners" who concur with mutual concessions. Trump specified that tariff reductions will be contingent upon the "scope and economic value" of commitments, alongside U.S. national interests. These reductions are intended for items that the U.S. cannot produce or supply in adequate quantities, including materials like nickel, graphite, gold, pharmaceutical compounds such as lidocaine, and reagents necessary for medical testing. Countries with agreements in place, such as Japan and the European Union, are set to benefit, whereas Switzerland could face a 39% tariff on gold in the absence of a deal. The order further includes specific exemptions for certain agricultural products, aircraft parts, LEDs, and magnets while terminating exemptions for particular plastics and polysilicon.