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EO 14346Executive OrderTrump 47 · R

Executive Order 14346

Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements

This executive order modifies the scope of reciprocal tariffs established under EO 14257 by updating Annex II to exclude certain goods, and creates formal procedures for implementing trade and security framework agreements and final agreements with trading partners. It specifically implements tariff reductions with the European Union under a newly announced Framework Agreement, while maintaining leverage by generally refusing to narrow tariffs before final agreements are concluded.

Federal Register Open PDF 90 FR 43737

Impact dates

  1. HTSUS modifications enter into effect per date in Annex I

  2. Updated Annex II to EO 14257 effective for goods entered for consumption or withdrawn from warehouse

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AutosSteel & aluminumAerospacePharmaAgricultureOil & gas

Mechanisms

TariffMinimum import price

Role pressure

  • MixedImporter — EU importers face reduced tariffs on certain goods but must navigate conditional, agreement-specific relief; non-EU importers face continued uncertainty
  • UncertainDomestic producer — Potential zero-tariff access for aligned partners on products 'not grown, mined, or produced in sufficient quantities' may limit protection for domestic substitutes; auto and steel sectors see conditional relief for EU competitors
  • MixedTrading-partner exporter — EU exporters gain preferential access contingent on fulfilling unspecified conditions; other partners face continued pressure to negotiate framework and final agreements
  • ProtectiveDownstream manufacturer — Exclusions for aircraft parts and pharmaceutical articles suggest input cost relief for US manufacturers dependent on foreign supply

Geographies

USEUCNOTHER

Exposure dates

  • — Updated Annex II to EO 14257 effective for goods entered for consumption or withdrawn from warehouse

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

EADSYAirbusAAAlcoaADMArcher Daniels MidlandBABoeingBGBungeCATCaterpillarCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsCTVACortevaLLYEli LillyXOMExxon MobilFFordGEGE AerospaceGEVGE VernovaGMGeneral MotorsHONHoneywellHYMTFHyundai MotorJNJJohnson & JohnsonLMTLockheed MartinMRKMerckNOCNorthrop Grumman

Confidence: medium · Policy alerts

Key directives

  • Update Annex II to EO 14257 with attached revised exclusions list
  • Modify HTSUS per Annex I to implement tariff changes
  • Implement Framework Agreement with EU reducing reciprocal tariffs to zero on certain products and reducing section 232 tariffs on EU autos/auto parts
  • Commerce Secretary and USTR shall determine and implement actions for framework agreements upon conclusion
  • Commerce Secretary and USTR shall implement final agreements upon conclusion
  • Continue monitoring trade deficit, reciprocity, non-tariff barriers, wage suppression, domestic manufacturing base, and defense industrial base
  • Commerce, DHS, and USTR authorized to take all necessary implementation actions including temporary suspension or amendment of regulations
  • CBP shall process duty refunds for agreement implementations per standard procedures

Who is ordered

Timeline

Immediate

  • Updated Annex II to EO 14257 takes effect 3 days after signing (September 8, 2025 at 12:01 a.m. EDT)
  • HTSUS modifications enter per Annex I schedule

Near term (90d)

  • Commerce Secretary and USTR to determine implementation actions for framework agreements
  • Monitoring of trade deficit and reciprocity conditions continues

Long term

  • Final trade and security agreements to be negotiated and implemented
  • Potential zero-percent reciprocal tariff rates for aligned partners on specific product categories

Risks & tensions

  • Conditional tariff relief creates negotiation leverage but generates uncertainty for importers planning supply chains
  • EU Framework Agreement commitment to zero reciprocal tariffs and reduced section 232 auto tariffs is conditional on EU taking 'certain steps'—specific conditions not detailed in text
  • General refusal to narrow tariffs before final agreements may prolong trade uncertainty for other partners
  • Fact-specific zero-tariff product lists for each partner create complex, non-uniform trade environment
  • Potential tension between IEEPA emergency authority and WTO obligations
  • Defense industrial base monitoring requirement suggests national security linkage may justify continued tariffs even with trade concessions
Executive Order 14346: Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements · Executive Orders