U.S. reciprocal tariffs: Trump administration grants exemptions.

Highlights

• The US modifies Annex II of reciprocal tariffs: some products are added to the list of exemptions (critical minerals, pharmaceuticals, ingots), while others are removed (aluminum hydroxide, resins, silicones).
• The new PTAAP Annex framework is created to facilitate tariff adjustments for aligned partners that sign reciprocal agreements and meet strategic commitments, including agricultural products.
• The changes take effect on September 8, 2025, with immediate impact for exporters and importers to/from the US.

On September 5, 2025, President Donald J. Trump signed a new Executive Order adjusting the United States’ reciprocal tariff policy and establishing an innovative framework for the implementation of trade and security agreements. 

This decision responds to the national emergency declared in April 2025 (EO 14257), motivated by persistent trade deficits and lack of reciprocity in market access.

1. Changes to Annex II

The executive order modifies Annex II, which determines the products exempt from reciprocal tariffs, as follows:

• Added to the list of exemptions:
  •  Items related to precious metal bullion.
  • Critical minerals key to strategic supply chains (e.g., graphite, nickel, neodymium magnets, LEDs).
  • Pharmaceuticals and components subject to investigations under Section 232.
• Removed from the list of exemptions (now subject to reciprocal tariffs):
  • Aluminum hydroxide.
  • Resins and silicones.

These adjustments will apply as of September 8, 2025.

2. Creation of the PTAAP Annex

The order creates a new framework called “Potential Tariff Adjustments for Aligned Partners” (PTAAP Annex). This mechanism:

• Identifies product categories that could benefit from tariff reductions if a trading partner:
  • Signs a reciprocal agreement with the U.S. that contributes to mitigating the trade emergency.
  • Complies with assessments of commitment to U.S. strategic concerns.

• Examples of covered products:
  • Aircraft and aircraft parts.
  • Generic drugs and their components.
  • Certain agricultural products

This scheme will allow tariffs to be lifted or adjusted more quickly, without the need for new executive orders, provided that a validated agreement exists.

3. Strategic implications

• For exporters: the agricultural, pharmaceutical, mining, and high-tech sectors will benefit in the short term. 

However, basic chemicals such as silicones will face higher tariffs.

• For governments and trade associations: it opens up space to negotiate specific agreements with the US under the PTAAP framework, targeting strategic sectors.

In the case of Colombia, agricultural products would have an opportunity.

• For bilateral trade: the policy reinforces the national security dimension of the US trade agenda, aligning tariff decisions with industrial and defense objectives.
• As can be seen, this executive order represents a structural change: it not only redefines which products are exempt from reciprocal tariffs, but also introduces a flexible mechanism to “reward” aligned partners. 
• The coming months will be crucial for countries and companies to assess their position in light of these measures.

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The key to thriving in this new global order will be to anticipate, adapt, and take advantage of the opportunities that arise in a multipolar world.
At CID-Pro Consulting, we are committed to helping our clients navigate this complex environment by providing strategic analysis and solutions tailored to their needs.