WASHINGTON, USA: In a dramatic shift in U.S. trade policy, President Donald Trump has signed an executive order introducing wide-ranging tariff exemptions for countries that agree to reciprocal trade arrangements with Washington. The move, effective from Monday, covers more than 45 product categories and signals a calculated attempt to use trade flexibility as a diplomatic bargaining chip.
The exemptions extend across strategic sectors, including nickel and graphite for EV batteries, gold bullion and powders, as well as pharmaceutical compounds, reagents, and generic drug ingredients. The order also touches on agricultural items and aircraft components, hinting at a much broader realignment of U.S. commercial interests.
Analysts see the policy as Trump’s way of rewarding cooperative allies while retaining leverage over nations hesitant to renegotiate trade pacts. For U.S. partners, the order provides immediate relief and smoother access to American markets. However, critics warn it could destabilize the global trade framework by embedding uncertainty and selective treatment into tariff practices.
In addition, the executive order streamlines future exemptions by authorizing customs and trade officials to grant tariff waivers without requiring new presidential approval. This could make adjustments more frequent and responsive to U.S. political or economic priorities.
The policy underscores Trump’s dual approach—protective at home, but flexible abroad—reshaping the balance between protectionism and diplomacy in international trade.
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