Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements
This Executive Order (EO 14346) updates and narrows the list of imports covered by the “reciprocal tariff” duties imposed earlier under EO 14257 (which declared a national emergency based on large and persistent U.S. goods trade deficits). It also creates a clear interagency process for implementing temporary “framework” trade-and-security commitments and final trade-and-security agreements with foreign trading partners. The order authorizes the Secretaries of Commerce and Homeland Security and the U.S. Trade Representative (USTR) to adjust the Harmonized Tariff Schedule of the United States (HTSUS), suspend or refund duties where required, and take other actions—using authorities such as the International Emergency Economic Powers Act (IEEPA) and section 232 of the Trade Expansion Act—to carry out these changes. In practice the EO (1) puts an updated Annex II into effect (narrowing or changing the goods subject to reciprocal tariffs), (2) directs Commerce and USTR to implement agreed framework and final trade/security deals (for example, the U.S.–EU Framework on Reciprocal Trade), and (3) delegates authority to agencies to modify tariffs, publish Federal Register notices, and process refunds consistent with law. The order emphasizes preserving U.S. national-security interests (including existing section 232 findings on steel, aluminum, autos and copper), conditions implementation on partners’ commitments, and requires ongoing interagency monitoring and recommendations.
Key Points
- 1Updated tariff lists and timing: Annex II to EO 14257 is revised and takes effect for goods entered or withdrawn for consumption three days after this EO; prescribed HTSUS changes in Annex I also take effect on the dates specified there.
- 2Framework vs final agreements: The Secretary of Commerce and the USTR must review any concluded framework agreement (preliminary trade/security arrangement) and decide if and when U.S. actions are required; they implement actions only when required conditions are met. Final agreements (completed, binding deals) must be implemented by Commerce and USTR consistent with the EO’s national-security and economic objectives.
- 3Possibility of zero-percent reciprocal tariffs for aligned partners: The EO expresses willingness—on a case-by-case basis—to reduce reciprocal tariffs to 0% for certain imports from “aligned” partners that make significant economic and national-security commitments. The Annex (“Potential Tariff Adjustments for Aligned Partners”) lists candidate products that generally cannot be produced domestically in sufficient quantity (including certain agricultural products, aircraft and parts, and some non‑patented pharmaceutical inputs).
- 4Delegation and implementation authorities: Commerce, DHS, and USTR are authorized to take necessary actions (including temporary suspensions or amendments of regulations, Federal Register notices, HTSUS changes, and using authorities under IEEPA and section 232) to effectuate the EO; they may redelegate functions within their agencies.
- 5Monitoring, interagency consultation, and limits: Commerce and USTR must continue monitoring the trade deficit, reciprocity, domestic manufacturing and defense industrial base, and other factors; they will consult Secretary of State, Treasury, Homeland Security, and White House advisors and report recommendations to the President. Implementation must comply with applicable law, appropriations, and does not create private legal rights.