The president of the United States, signed an executive order by modifying the scope of reciprocal tariffs he first announced on April 2.
In a statement issued on Friday, 5, the White House reported that some products added to Annex II of the Order on reciprocal tariffs will no longer be subject to these taxes. These products include articles related to precious metals and certain minerals and essential pharmaceuticals subject to section pending investigations, says the document.
On the other hand, some products have been removed from the annex, which means they are now subject to reciprocal tariffs. These products include certain aluminum, resin and silicone hydroxide products, says the document.
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The modifications will take effect on Monday, 8.
The document also mentions that Trump is promoting a structure to implement existing and future trade agreements. “Today’s order establishes an annex” potential tariff adjustments for aligned partners “(PTAAP), which contains a list of products to which the president may be willing to apply only the most favored nation fare (NMF) upon completion of any future reciprocal agreement of trade and security,” according to the document.
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A more favored nation fare is the standard fare a country applies to imports from other members of the World Trade Organization (WTO) unless there is a preferred or free trade agreement.
Regarding this potential NMF fare application, the document says that goods of four categories can be framed: certain aircraft and aircraft parts; certain generic medications and their ingredients; unavailable natural resources and intimately related products; and certain agricultural products that are not cultivated or produced in enough US. The intention would be to meet the internal demand.
For a reduction in reciprocal tariffs for some or all products listed in the PTAAP Annex, a commercial partner must complete an agreement with the US that helps mitigate the national emergency related to the commercial deficit.
