CBP Guidance on Reciprocal Tariff Revisions

Late last week, the White House issued a new Executive Order that reshapes the landscape for reciprocal tariffs. The order, signed on September 5, 2025, takes effect immediately for goods entered on or after September 8, 2025. CBP has since released updated guidance clarifying how importers should navigate the changes.

Key Adjustments to Product Coverage

The latest order modifies Annex II of Executive Order 14257, which governs products exempt from reciprocal tariffs. The update is not one-sided - while some goods have been newly shielded from tariff action, others have lost their exempt status and will now face duties.

• Products Added to Annex II (Exempt): items such as bullion-related articles, certain critical minerals, pharmaceutical intermediates, and other raw materials.

• Products Removed from Annex II (Now Dutiable): aluminum hydroxide, select resin and silicone products, and other chemical-related materials.

Importers must ensure proper reporting of these products. CBP guidance stresses that goods qualifying for exemption should be declared under subheading 9903.01.32, while entries falling out of exemption status must be corrected within ten days of release if misfiled.

A New Annex III – Tariff Carve-Outs in Future Deals

Perhaps most significant is the introduction of Annex III, a sweeping 72-page list of products that the U.S. may consider reducing to a 0% reciprocal tariff rate in the context of trade agreements. These carve-outs generally fall into four categories:

• Products that cannot be adequately grown, mined, or produced domestically

• Certain agricultural commodities

• Aircraft and aircraft parts

• Non-patented pharmaceutical articles

While broad, these carve-outs come with scope limitations (e.g., restricted to civil aircraft or specific pharma uses). Importantly, the list functions as a negotiating position, not a guarantee.

Process for “Framework” vs. “Final” Agreements

The order also formalizes how trade agreements will be implemented. Deals are broken into two stages:

• Framework agreements are preliminary, and implementation is not automatic. The Secretary of Commerce and USTR will decide whether early measures should be applied.

• Final agreements are binding, with clear instructions for implementation. In some cases, this may even include duty refunds where agreements are provided for them.

This delegation of authority signals a major shift in U.S. trade policy.  It empowers the executive branch to adjust tariffs rapidly, without congressional involvement. 

Why It Matters for Importers

For U.S. companies, the speed and scope of these changes underscore the need for vigilance. Tariff classifications that were secure last week may now be subject to duties, while new carve-outs could offer relief in upcoming trade negotiations. At the same time, the unpredictability of “weekend changes” means importers should prepare compliance systems that can pivot quickly, ensuring filings are accurate and corrective actions are made without delay.

In short, while the new exemptions and potential carve-outs may open opportunities, they also reinforce a core truth of today’s trade climate: tariffs can shift overnight, and companies need to be nimble as they navigate the changing landscape.

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here.

Contributor: Rebecca Anderson

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About Allyn International

Allyn International provides high quality, customer-centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com