Newly added products include various types of gold imports, from powder to gold bars, as well as rare metals such as tungsten, uranium, graphite, and nickel. Tungsten is a key material for industrial and military production, and graphite and nickel are key components in stainless steel manufacturing and electric vehicle batteries. The exempted tariff commodities also cover compounds used in generic drugs, including the anesthetic lidocaine and agents used in medical testing.
Products that cannot be grown, mined, produced naturally or produced naturally in the United States, have also received tariff exemptions. The White House note pointed out that for trading partners that have reached a trade agreement with the United States, Trump may consider only implementing the most-favored-nation treatment tariffs on some aircraft and aircraft parts, some non-patent drugs, some agricultural products and natural resources imported to the United States by relevant countries.
It was previously reported that Trump may impose tariffs on gold bars, which are the most widely traded in the US market. In August, Trump announced that the United States imposed 39% tariffs on products imported from Switzerland, the world’s leading gold refiner. The U.S. Customs and Border Protection then ruled that 1kg and 100 ounces of cast gold bars from Switzerland were subject to a 39% tariff, and spot gold and gold futures prices soared, with the U.S. Comex exchange using 1kg or 100 ounces of gold bars. The Swiss Precious Metals Association warned at the time that U.S. actions could have a negative impact on the international flow of physical gold.
Although tariff exemptions were imposed on gold and other products, the White House note pointed out that Annex II also excluded some goods, which means that these goods will face tariffs later, including some silicon products, aluminum hydroxide, and resin.
Trump’s tariffs have had a negative impact on U.S. manufacturing. Data released by the American Institute of Supply Management (ISM) last week showed that the U.S. ISM manufacturing purchasing managers index (PMI) rose slightly to 48.7 from 48.0 in July, which has continued to fall below the boom and bust line in the past six months, indicating that the manufacturing industry is in a state of continuous shrinkage. Specifically, seven industries, including textiles and primary metals, reported growth; 10 industries including paper products, machinery, electrical equipment, electrical appliances and components, and electronics showed a contraction.
