Major Tariff News! Trump Signs Executive Order Adjusting Import Tariff Scope

On September 5, Eastern Time, the White House issued a statement announcing that U.S. President Trump signed an executive order to adjust the scope of import tariffs and implement trade and security framework agreements with foreign trade partners. The executive order stipulates that after reaching framework or final agreements with foreign trade partners, the U.S. may adjust tariffs based on the agreement content, including reducing "reciprocal tariffs" on certain goods to zero.

It is worth noting that U.S. chip tariffs may be imminent. Trump recently revealed at a White House dinner with tech leaders that a "fairly substantial" semiconductor tariff is forthcoming, though no specific details were disclosed. According to earlier reports by Xinhua, Trump had previously proposed a 100% tariff on chip products, but companies like Apple that build factories in the U.S. would be exempt.

After reaching framework or final agreements with foreign trade partners, the U.S. may adjust tariffs based on the agreement content, including reducing "reciprocal tariffs" on certain goods to zero. However, the tariff scope is typically not narrowed, and Section 232 tariffs (on steel and aluminum derivatives) are not modified before the final agreement is signed.

The U.S. Department of Commerce, the Office of the U.S. Trade Representative, and other relevant agencies will continuously monitor trade partners' compliance, trade deficits, and other related factors, reporting to Trump and proposing further adjustments.

The White House stated that under the agreement, the U.S. will impose a baseline tariff of 15% on almost all Japanese goods exported to the U.S., while implementing differentiated tariff treatments for the following specific sectors: automobiles and auto parts, aerospace products, generic drugs, and natural resources that cannot be naturally obtained or produced domestically in the U.S. This new tariff framework, combined with expanded U.S. exports and an investment-driven production model, will help reduce the U.S. trade deficit with Japan and restore a higher level of balance in overall U.S. trade conditions.

Meanwhile, Japan will provide breakthrough market access opportunities for U.S. manufacturers in key sectors, including manufacturing, aerospace, agriculture, food, energy, automobiles, and industrial finished products. Specifically, the Japanese government is committed to accelerating the implementation of the following measures: increasing purchases of U.S. rice by 75% under the "Minimum Market Access" rice program; and purchasing $8 billion worth of U.S. agricultural products annually (including corn, soybeans, fertilizer, bioethanol—including bioethanol for sustainable aviation fuel—and other U.S. products).