White House announces modifications to scope of “Reciprocal Tariffs,” framework for implementing trade agreements

Updated Annex II to Executive Order 14257 effective September 8, 2025

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September 8, 2025

The White House announced that President Trump has signed an executive order (dated September 5, 2025) modifying the scope of “Reciprocal Tariffs” imposed under Executive Order (EO) 14257 (dated April 2, 2025), which imposed a 10% tariff on all countries, with higher reciprocal tariffs on countries with the largest U.S. trade deficits.

In particular, the executive order updates Annex II to EO 14257, which sets out the list of goods not subject to the Reciprocal Tariffs imposed under EO 14257, effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after September 8, 2025.

  • Goods added to Annex II (meaning they will no longer be subject to Reciprocal Tariffs) include bullion-related articles and certain critical minerals and pharmaceutical products subject to pending Section 232 investigations.
  • Goods removed from Annex II (meaning they are now subject to Reciprocal Tariffs) include certain aluminum hydroxide, resin, and silicone products.

The executive order also establishes a framework to implement existing and future trade agreements, and includes a list of products for which a 0% reciprocal tariff rate may be allowed under future agreements:

  • Certain products that cannot be grown, mined, or naturally produced in the United States or grown, mined, or naturally produced in sufficient quantities in the United States to satisfy domestic demand
  • Certain aircraft and aircraft parts
  • Certain non-patented articles for use in pharmaceutical applications

Read the White House fact sheet

For more information, contact a professional with KPMG Trade & Customs services:

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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