Executive Order Modifying Reciprocal Tariffs And Trade Agreement Incentives

On Sept. 5, President Trump signed an executive order ("order" or "EO") Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements. The EO both adjusts tariff coverage and creates new incentives for trading partners to deepen trade relationships with the United States. This order also modifies the scope of some current reciprocal tariffs.

Background

As background, the April 2 executive order Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual U.S. Goods Trade Deficits ("EO 14257") first imposed reciprocal tariffs on global trading partners under the purview of the International Emergency Economic Powers Act ("IEEPA"). The Trump administration's use of IEEPA to impose worldwide reciprocal tariffs is currently under judicial review. President Trump's Sept. 5 order was released a week after the U.S. Court of Appeals for the Federal