Trump "Frenetically" Exempts Dozens of Goods from Tariffs

According to a report by The Wall Street Journal on October 17, as relevant hearings approach, the Trump administration is quietly adjusting its tariff policy and has exempted dozens of goods from tariffs.

Trump stated that after reaching trade agreements with other countries, hundreds of goods such as agricultural products and aircraft parts may also be granted tariff exemptions.

Various signs indicate that the U.S. government’s move seems to be making advance arrangements for a potential losing verdict in an upcoming legal case.

The U.S. Supreme Court will hold a hearing in early November regarding disputes over the legal basis of reciprocal tariffs. If the government loses the case, it may have to refund a large amount of tariff revenue. Insiders said that to prevent the court from invalidating Trump’s tariffs, the administration has expanded the scope of tariff exemptions.

Last month, Trump released a new exemption list called "Annex II," covering various products including gold, LED lights, specific minerals, chemicals, and metal products. Many of these goods have been or will be included in the taxation scope under Section 232.

He also previewed hundreds of potential exemptions in the future, which may be called the "Annex III" list according to an executive order he signed: if other countries finalize trade agreements with the U.S., they can enjoy zero-tariff treatment for hundreds of goods in the list when exporting to the U.S. This list mainly targets "goods that the U.S. cannot grow, mine, or produce naturally," including specific agricultural products, aircraft and their parts, and non-patented items used in pharmaceutical manufacturing.

According to Sputnik News Agency, on October 19 local time, U.S. President Trump revealed on his flight back to Washington from Florida that Washington may reduce tariffs on Chinese goods, but at the same time seek China to change its stance on rare earth metals and resume purchases of U.S. soybeans.