Sec. 1 Background
In section 4 of Executive Order 14257, section 5 of Executive Order 14326 of July 31, 2025 (Further Modifying the Reciprocal Tariff Rates), and other Executive Orders issued to address the national emergency declared in Executive Order 14257, I directed various officials to monitor the circumstances involving the emergency declared in Executive Order 14257 and to recommend to me additional action that would more effectively deal with the emergency conditions described in Executive Order 14257. Based on this monitoring, among other things, I have received additional information and recommendations from these officials. After considering the information and recommendations these officials have provided to me, among other things, I have determined that it is necessary and appropriate to modify Annex II to Executive Order 14257 as shown in the updated version of Annex II that is attached to this order. In my judgment, these modifications are necessary and appropriate to deal with the national emergency declared in Executive Order 14257.
Further, in section 4(c) of Executive Order 14257, I noted that I might further decrease or limit in scope the duties imposed under Executive Order 14257, as amended, if any trading partner takes significant steps to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters. Accordingly, I later temporarily suspended the individual ad valorem rate of duty for certain trading partners to reflect the fact that some trading partners had signaled a willingness to undertake meaningful economic and national security commitments with the United States designed to combat the emergency declared in Executive Order 14257. In Executive Order 14326, I noted that certain foreign trading partners had agreed, or were on the verge of agreeing, to meaningful trade and security agreements with the United States, with the conclusion of the agreements to be completed in the future.
In my judgment, it is necessary and appropriate to take steps contemplated in certain current and forthcoming trade and security framework agreements (framework agreements) between a foreign trading partner and the United States. I determine that any modification of tariffs required to implement current and forthcoming framework agreements is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 and to reduce or eliminate the threats to national security found in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended; and Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States). Except in rare circumstances, I will refrain from narrowing the scope of the reciprocal tariff or any relevant section 232 tariff before the conclusion of a final trade and security agreement (final agreement) between the foreign trading partner and the United States.
For example, the United States and the European Union recently announced a landmark “Framework on an Agreement on Reciprocal, Fair, and Balanced Trade” (Framework Agreement). In the joint statement announcing the Framework Agreement, the United States committed to reduce the reciprocal tariff imposed under Executive Order 14257, as amended, on certain products of the European Union to zero percent and to reduce tariffs imposed under section 232 for automobiles and automobile parts originating from the European Union if the European Union takes certain steps. In my judgment, it is necessary and appropriate to implement the tariff modifications described in the Framework Agreement. These modifications are necessary and appropriate to deal with the national emergency declared in Executive Order 14257 and to reduce or eliminate the threat to national security found in Proclamation 9888, as amended.
Similarly, I determine that it is necessary and appropriate to implement the terms of any final agreement between a foreign trading partner and the United States related to the national emergency declared in Executive Order 14257. In my judgment, the modifications required to implement the terms of such a final agreement are necessary and appropriate to deal with the national emergency declared in Executive Order 14257 and to reduce or eliminate the threats to national security I have found pursuant to section 232.
Though I am generally unwilling for framework agreements to narrow the scope of the reciprocal tariffs or modify any relevant section 232 tariff before the conclusion of a final agreement, final agreements with the United States may include such modifications. My willingness to reduce the reciprocal tariff to zero percent for a given import or to modify tariffs imposed under section 232 will depend on numerous factors, including the scope and economic value of a trading partner's commitments to the United States in its agreement on reciprocal trade, the national interests of the United States, the need to deal with the national emergency declared in Executive Order 14257, and the need to reduce or eliminate the threats to national security I have found pursuant to section 232. The list of imports for which I may be willing to provide a zero percent reciprocal tariff rate is set forth in the Annex to this order entitled “Potential Tariff Adjustments for Aligned Partners,” which contains 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 agricultural products; aircraft and aircraft parts; and non-patented articles for use in pharmaceutical applications. Given the complex, fact-specific, and sensitive nature of negotiations and the national emergency declared in Executive Order 14257, among other relevant considerations, the imports that might receive a reciprocal tariff rate of zero percent may be different for each final agreement between a foreign trading partner and the United States.