US Exempts Agricultural Products From Reciprocal Tariff

Lead

On November 14, 2025, President Donald J. Trump signed an executive order that narrows the list of goods subject to the reciprocal tariff established earlier in 2025, exempting certain agricultural products. The change follows Executive Orders 14257 (April 2, 2025) and 14346 (September 5, 2025) and reflects updated negotiations, domestic demand, and U.S. production capacity. The exemptions take effect for goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern standard time on November 13, 2025. The administration said the adjustment will be reflected in modifications to the Harmonized Tariff Schedule and implemented through standard federal procedures.

Key Takeaways

• The November 14, 2025 order revises Annex II to Executive Order 14257 and the Annex to Executive Order 14346 to exempt specified agricultural products from the reciprocal tariff.
• Exemptions apply to goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. EST on November 13, 2025.
• The Harmonized Tariff Schedule of the United States will be amended via Annex I to the order; Customs refunds, if required, will follow U.S. Customs and Border Protection procedures.
• The order cites authority under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974 (19 U.S.C. 2483), and section 301 of title 3, United States Code.
• Implementation and monitoring are assigned primarily to the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative, with authority to adopt regulations and redelegate functions as allowed by law.
• The administration framed the change as necessary to address the national emergency declared in Executive Order 14257 while accommodating domestic needs and ongoing trade talks.

Background

On April 2, 2025, President Trump issued Executive Order 14257, finding that large and persistent U.S. goods trade deficits presented an unusual and extraordinary threat to national security and the economy, and declaring a national emergency to address those deficits. That order imposed ad valorem duties designed to alter trade incentives and included Annex II, a list of items exempted from the ad valorem rates. On September 5, 2025, Executive Order 14346 adjusted the scope of products subject to the reciprocal tariff and updated Annex II to reflect changes in policy and trade dynamics.

Since those orders were issued, administration officials have continued to collect information on negotiations with trading partners, U.S. domestic demand for particular goods, and U.S. production capacity. Those inputs—along with legal authorities cited in the order—formed the basis for the November 14, 2025 revision. The order emphasizes that the adjustments are intended to balance emergency trade policy goals with practical considerations for supply chains and consumers.

Main Event

The November 14 order directs specific amendments: an updated Annex II to Executive Order 14257 and a revised Annex to Executive Order 14346 titled “Potential Tariff Adjustments for Aligned Partners.” Those annexes identify the agricultural categories to be excluded from the reciprocal tariff. The text makes clear the effective timestamp applies retroactively to entries or withdrawals on or after 12:01 a.m. EST on November 13, 2025, meaning the tariff scope change affects recent cross-border shipments and warehouse withdrawals.

The order also instructs that the Harmonized Tariff Schedule be modified as described in Annex I and delegates implementation authority to relevant agencies. If duties were collected on goods now exempted, the order requires refunds to be processed under existing law and CBP procedures. Agencies are authorized to adopt rules, issue guidance, and redelegate duties as necessary to carry out the changes.

Administratively, the Secretary of Commerce and the U.S. Trade Representative are charged with ongoing monitoring and must notify the President of developments that could require further action. The Secretary of Homeland Security is similarly authorized to act in concert with Commerce and USTR. The order contains standard severability and implementation clauses and states that publication costs will be borne by the U.S. Trade Representative.

Analysis & Implications

Policy-wise, the exemptions signal an effort to soften the trade-policy stance for specific agricultural sectors while maintaining broader reciprocal-tariff leverage. By carving out farm goods, the administration likely aims to avoid supply disruptions, inflationary pressure on food prices, and political fallout from affected domestic stakeholders ahead of the 2026 growing season and related market cycles. The choice reflects a balancing act between applying pressure on trading partners and protecting domestic consumers and producers.

Economically, removing certain agricultural items from the tariff list will reduce direct cost pressure on importers of those goods and could lower near-term price volatility in affected markets. The move may also affect negotiation dynamics with trading partners: exemptions can be used as bargaining chips or to reward aligned partners in separate trade and security discussions noted in the order. The impact on overall U.S. goods trade deficits will be limited unless exemptions cover high-volume categories.

Legally, the administration relies on emergency economic powers and trade statutes that have broad administrative reach. That reliance could invite scrutiny from stakeholders who oppose emergency-based trade actions, and potential legal challenges could test the scope of authorities such as IEEPA and the Trade Act. The order’s built-in review and monitoring functions suggest the administration expects to adjust policy as circumstances evolve.

Comparison & Data

The table highlights the sequence: a tariff framework set in April, procedural adjustments in September, and product-specific exemptions in November. The administration points to current domestic demand and production capacity as reasons for the targeted carve-outs; however, the order does not publish a detailed, itemized list in the body text, instead attaching revised annexes for tariff-line specificity.

Reactions & Quotes

“In my judgment, these modifications are necessary and appropriate to deal with the national emergency declared in Executive Order 14257.”

Executive Order (White House)

“Refunds shall be processed pursuant to applicable law and the standard procedures of U.S. Customs and Border Protection for such refunds.”

Executive Order (implementation guidance)

“The Secretary of Commerce and the United States Trade Representative shall continue to monitor the circumstances…and shall inform me of any circumstance that might indicate the need for further action.”

Executive Order (White House)

Unconfirmed

• Specific list of excluded agricultural tariff lines is contained in attached annexes; third-party summaries of the annex content remain unverified until the annex publishes in the Harmonized Tariff Schedule.
• The degree to which the exemptions will alter negotiations with specific trading partners has not been publicly confirmed by those partners.
• Any immediate market price movements tied directly to the exemption have not been fully documented and require follow-up trade and price data to confirm.

Bottom Line

The November 14, 2025 executive order narrows the reciprocal tariff program by exempting certain agricultural products effective November 13, 2025, and assigns implementation duties to Commerce, Homeland Security, and USTR. The move aims to reconcile emergency trade measures with domestic supply and negotiation realities, reducing near-term impacts on food and farm-related supply chains.

Expect follow-on agency regulations, tariff-schedule updates, and monitoring reports that will clarify which tariff lines are exempt and whether refunds will be issued for recent entries. Stakeholders and trading partners will be watching the annexes and subsequent implementation steps for indications of broader policy direction.

Sources

• The White House (official presidential action)
• Executive Order 14257 (official text, April 2, 2025)
• Executive Order 14346 (official text, September 5, 2025)
• U.S. Customs and Border Protection (federal agency; refunds and entry procedures)
• Congress.gov (statutory authorities cited: IEEPA, National Emergencies Act, Trade Act of 1974)