On November 14, 2025, President Donald J. Trump issued an Executive Order modifying the scope of reciprocal tariffs to exempt certain agricultural products. The tariffs were originally imposed in April to address persistent U.S. goods trade deficits, which were deemed a national emergency under the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and the Trade Act of 1974. The action follows an earlier order issued in September that had modified the goods subject to the reciprocal tariffs.
Scope of Exemptions: The Executive Order exempts 237 classifications and eleven categories of agricultural products from reciprocal tariffs. These include coffee, tea, bananas, oranges, tomatoes, beef, tropical fruits, fruit juices, cocoa, spices, and certain fertilizers. The Executive Order amends Annex II of Executive Order 14257, which lists products to which the reciprocal duties do not apply.
Rationale for Exemptions: The Executive Order cites several factors for the exemptions. the status of trade negotiations, domestic demand for certain products, and the domestic capacity to produce certain agricultural products. Many of the exempted products cannot be produced domestically in sufficient quantities (if at all) to satisfy US demand due to climate, geography, or other limitations.
Implementation and Administrative Procedures: The Executive Order authorizes Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative to implement the Executive Order. These officials are also directed to monitor the circumstances surrounding the national emergency and consult regularly on the need for further action. Executive departments and agencies are required to take appropriate measures within their authority to effectuate the order.
Practical Considerations: The exemptions are effective retroactively for goods entered into the U.S. for consumption or withdrawn from warehouses for consumption as of November 13, 2025. Refunds for previously collected duties will be processed according to standard customs procedures.
The exemptions will provide some degree of relief to importers and US businesses that rely on imported agricultural products. To benefit from the exemptions businesses should work with customs counsel and advisors, suppliers, brokers, and carriers to verify product eligibility, ensure that correct HTS codes are adopted, and maintain necessary supporting documentation. Additionally, given the frequent changes to the scope of tariffs, companies should continue to monitor customs developments closely to ensure compliance and take advantage of exemptions as they arise.
