The Trump administration’s tariff policy continues to shift unpredictably. On April 2, the government announced the imposition of retaliatory tariffs, only to release an extensive product exemption list the very next day, April 3. According to an official announcement on the White House website, the list includes nearly a thousand products spanning across energy commodities, various minerals, chemicals used in the energy and manufacturing sectors, as well as metals such as steel, aluminum, and copper.
Reports indicate that these exemptions cover a substantial volume of trade, totaling $644 billion worth of imported goods worldwide in 2024. Of this, imports from Canada and Mexico accounted for $185 billion, while goods from other countries and regions amounted to $459 billion (based on 2024 trade statistics).
As per the executive order issued by the White House, the following products are exempt from the new retaliatory tariffs:
Food, medicine, and humanitarian supplies, in accordance with Title 50, Section 1702(b) of the United States Code.
Products already subject to Section 232 tariffs, such as steel, aluminum, automobiles, and auto parts.
Strategic goods, including copper, pharmaceuticals, semiconductors, and timber.
Products potentially subject to future Section 232 reviews.
Precious metals, such as gold bullion.
Essential energy sources and critical minerals that are not available domestically in the U.S.
Additional exemptions include:
Goods in transit: Products loaded and shipped before the effective date of the tariffs but entering the U.S. for consumption afterward.
Products with high U.S. content: If over 20% of the declared customs value of a product originates from U.S. components, the retaliatory tariff applies only to the non-U.S. portion.
Canadian and Mexican products:
Products compliant with the USMCA (United States-Mexico-Canada Agreement): 0% tariff.
Non-USMCA goods: 25% tariff.
Non-USMCA energy and potash products: 10% tariff.
If future orders lift current provisions, non-USMCA goods from Canada and Mexico will default to a 12% tariff.
Key Exempt Categories Explained
Minerals and Critical Resources
The U.S. grants exemptions for energy and critical minerals that cannot be domestically sourced, such as rare earth elements and graphite. Currently, around 80% of U.S. rare earth imports depend on China, which also leads the world in graphite anode materials, both essential for modern industries.
Specific Products
Pharmaceuticals: Items like cold medicine, vitamins, and antibiotic raw materials rely heavily on Chinese supply. Tariff exemptions are expected to accelerate the U.S. pharmaceutical industry’s move from raw materials to finished drug formulations.
Semiconductors: While the U.S. dominates high-end chip production, it remains reliant on global supply chains, particularly China’s critical materials such as silicon compounds and specialized semiconductor dopants.
Metals: Products already covered by Section 232 tariffs, including steel, aluminum, passenger vehicles, light trucks, and auto parts, will remain exempt.
Battery materials: Lithium, cobalt, nickel—key materials for battery production where China holds a competitive advantage—will benefit from tariff exemptions, directly boosting the U.S. electric vehicle and battery industries.
Information and Media Products
Exemptions extend to publications, films, posters, records, photographs, microfilms, tapes, CDs, artworks, and press releases. This measure supports the expansion of U.S. cultural exports and soft power.
Products with High U.S. Content
For products where U.S. components exceed 20% of the declared customs value, only the non-U.S. portion is subject to retaliatory tariffs.
Example: For a product valued at $100, if $30 represents U.S. content and $70 comes from foreign sources, the tariff will be calculated only on the $70 portion.
