Certain items that are difficult to produce in the United States, such as graphite, tungsten, uranium, and gold bars, may now be subject to a mutual tariff rate of 0%.
On September 5 (local time), U.S. President Donald Trump signed an executive order stating that the mutual tariff rate for certain eligible items could be reduced to as low as 0%.
In the executive order, President Trump stated, "The mutual tariff rate on certain imports may be reduced to 0%, or tariffs imposed under Section 232 of the Trade Expansion Act may be adjusted downward."
The items in question include specific agricultural products, aircraft and aircraft parts, and non-patented pharmaceuticals that cannot be cultivated, mined, or naturally produced in the United States, or for which domestic supply is insufficient to meet demand. Major foreign media outlets, including Bloomberg, analyzed that graphite, tungsten, uranium, and gold bars fall under this category.
However, such exceptions will be determined by considering factors such as the scope and economic value of commitments made by trading partners in trade agreements with the United States, U.S. national interests, and the need to respond to national emergencies. The imports eligible for a 0% tariff rate may also vary depending on the final agreement.
Although the executive order leaves room for interpretation, it is understood to mean that, as in the recently concluded written trade agreement with Japan, a 0% tariff rate may be exceptionally applied to certain items if a "final agreement" is reached. For Japan, "most-favored-nation treatment" was applied to pharmaceuticals and semiconductors, and the 0% tariff rate on aircraft and aircraft parts was maintained.
This executive order will take effect on September 8.
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