Trump’s Tariff Shift: From Broad Tariffs to Targeted Exemptions — A New Turn in Global Trade

1. Trump Signals a Softer Tone: Tariff Policy Quietly Adjusts

On the evening of October 19, Trump hinted that the “door to dialogue remains open.” Meanwhile, multiple media outlets reported that his administration has quietly relaxed several tariff measures. In recent weeks, dozens of products — from agricultural goods to aircraft components — have been exempted from “reciprocal tariffs.”

This shift reflects a more pragmatic strategy: moving from all-encompassing tariff enforcement toward selective adjustments, balancing protectionist goals with economic realities.

2. Legal Pressure Drives “Preemptive” Relaxation

The latest tariff easing is closely tied to ongoing legal battles. Earlier this year, a U.S. court ruled against Trump, stating he lacked authority to impose tariffs under the *International Emergency Economic Powers Act*. The administration appealed to the Supreme Court, with a hearing scheduled for early November.

To hedge against an unfavorable ruling — which could require refunding large amounts of previously collected tariffs — the administration has expanded exemptions preemptively. This approach mitigates potential fiscal and legal shocks if the court ultimately limits presidential trade powers.

3. Policy Consensus Shifts: From Hardline to Pragmatic Adjustment

According to officials familiar with White House discussions, a new internal consensus is emerging: tariffs should be reduced or removed on goods the U.S. does not produce domestically.

Everett Eissenstat, a former Deputy Assistant to the President for International Economic Affairs, noted that this “shift developed gradually and is now widely accepted.” Commerce Secretary Lutnick, once adamant that “no exemptions” would be granted, recently softened his stance, suggesting that “if you grow or make something we don’t, it can enter tariff-free.”

This rhetoric underscores a broader policy evolution — from confrontation toward calibrated realism — acknowledging that excessive tariffs may harm domestic industries and consumers alike.

4. Legal Framework Recalibration: Leveraging Section 232 for Stability

While relaxing certain tariffs, the Trump administration is increasingly relying on Section 232 of the *Trade Expansion Act of 1962*, a more legally robust foundation for tariff authority. Section 232 allows the president to impose trade restrictions on national security grounds, previously used for steel and aluminum tariffs.

On October 17, Trump announced new 25% tariffs on trucks and truck parts and 10% on buses under Section 232, effective November 1. Simultaneously, the administration extended the auto manufacturer tariff credit program to 2030, allowing partial offsets for import costs.

By anchoring trade actions in a stronger legal framework, the administration seeks both to preserve protectionist tools and ensure greater policy legitimacy.

5. Industry Pressure Spurs Wider Exemptions

Across industries, U.S. manufacturers and trade groups are urging broader tariff exemptions. The Consumer Brands Association, representing major food producers, requested exclusions for key imports such as coffee, cocoa, spices, tropical fruits, and tinplate steel used in canned goods.

Many of these goods are already listed in “Annex III,” which could qualify for exemption under bilateral or regional trade agreements. These appeals highlight a fundamental reality: overtaxing goods with limited or no domestic production raises costs across supply chains, ultimately burdening consumers.

6. Conclusion: Toward a “Precision Adjustment” Era in Trade Policy

The Trump administration’s recent moves mark a turning point — from blanket tariffs to more nuanced, targeted trade management.

Regardless of the Supreme Court’s final ruling, this policy recalibration is set to reshape U.S. and global trade relations. For companies engaged in cross-border shipping and logistics, monitoring tariff exemptions and legal developments will be crucial for maintaining competitiveness in the months ahead.

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