• Trump issued a new directive on Sept. 5 that restructures the U.S. reciprocal tariff program.
• The updated order adds exemptions for goods like bullion-related materials, critical minerals, and select pharmaceuticals, while reinstating tariffs on others such as aluminum hydroxide, silicone, and certain plastics.
• A new category, the PTAAP (Potential Tariff Adjustments for Aligned Partners) list, allows countries with qualifying trade and security agreements to receive reduced or zero tariffs on specific goods.
• The move signals a shift toward rewarding allies who meet U.S. standards, while tightening controls on countries that haven’t signed new trade pacts.
This adjustment provides a clearer pathway for U.S. trading partners to negotiate tariff relief and brings predictability to businesses caught in the uncertainty of broad tariff swings. It also reflects the Trump administration’s broader push to tie economic incentives to national security cooperation.
