Fact Sheet: President Donald J. Trump Modifies the Scope of Reciprocal Tariffs and Establishes Procedures for Implementing Trade Deals

9/5/2025
Fact Sheets

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Action Summary

  • Objective: Strengthen the U.S. economy and national security by modifying the scope of reciprocal tariffs and establishing a framework to implement tailored trade deals.
  • Tariff Modifications: Adjustments to Annex II include:
    • Products Added: Bullion-related articles, certain critical minerals, and pharmaceutical products under pending Section 232 investigations are removed from reciprocal tariffs.
    • Products Removed: Specific aluminum hydroxide, resin, and silicone products are now subject to reciprocal tariffs.
  • PTAAP Annex Creation: Introduction of the “Potential Tariff Adjustments for Aligned Partners” annex which outlines products eligible for MFN tariff rates if trading partners reach reciprocal trade and security deals, covering:
    • Certain aircraft and aircraft parts
    • Generic pharmaceuticals and ingredients
    • Unavailable natural resources and related derivative products
    • Agricultural products not sufficiently produced domestically
  • Delegated Authority: Senior officials, including the Secretary of Commerce and the U.S. Trade Representative, are empowered to implement and negotiate these trade deals.
  • Tariff Actions and Rationale: Multiple tariff actions target countries with nonreciprocal trade practices:
    • 20% tariff on China for synthetic opioid supply issues
    • 25% tariff on Mexico and 35% on Canada to curb illicit drug flows
    • Additional tariffs on Brazil (40%) and India (25%) for economic and national security concerns
    • Section 232 tariffs on automobiles, auto parts, copper, steel, and aluminum to protect critical domestic industries
  • Trade Deal Enhancements: Efforts to secure tailored deals include:
    • An extensive deal with the European Union involving significant U.S. energy purchases and investments.
    • An agreement with Japan focusing on massive investments in U.S. industries and increased market access.
    • Additional deals with the United Kingdom, Indonesia, the Philippines, South Korea, Vietnam, and others to open markets and attract foreign investment.
  • Overall Impact: The modifications and trade deal framework aim to protect national security, reinforce domestic supply chains, promote economic fairness, and incentivize manufacturing and job creation within the United States.

Risks & Considerations

  • The Executive Order’s modification of reciprocal tariffs and the establishment of new trade frameworks could lead to increased costs for imported goods, affecting research and operational budgets at Vanderbilt University, particularly in areas reliant on international supplies.
  • Changes in tariffs on pharmaceuticals and critical minerals could impact research projects and collaborations that depend on these materials, potentially increasing costs or causing delays.
  • The focus on national security and economic protectionism may lead to stricter regulations and compliance requirements for international collaborations and partnerships, affecting Vanderbilt’s global research initiatives.
  • Potential retaliatory tariffs from other countries could affect the university’s international students and faculty, impacting diversity and global perspectives within the institution.

Impacted Programs

  • Vanderbilt’s Research Departments may face increased costs for imported research materials, particularly in fields like pharmaceuticals and engineering, which could affect project budgets and timelines.
  • The Office of International Affairs might need to navigate new compliance and regulatory challenges related to international collaborations and partnerships.
  • Vanderbilt’s Business and Economics Programs could see increased demand for expertise in international trade and economic policy, presenting opportunities for research and curriculum development.
  • The Office of Financial Aid may need to adjust strategies to support international students affected by changes in trade policies and potential economic impacts in their home countries.

Financial Impact

  • Increased tariffs on certain imports could lead to higher operational costs for the university, particularly in research and development areas that rely on international materials and equipment.
  • Potential changes in international student enrollment due to economic impacts in their home countries could affect tuition revenue and financial aid distribution.
  • Opportunities may arise for Vanderbilt to secure funding for research in international trade and economic policy, particularly through collaborations with government agencies and industry partners.
  • Vanderbilt may need to explore alternative funding sources or partnerships to mitigate the financial impact of increased tariffs and changes in international trade policies.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

  • Vanderbilt’s Office of Federal Relations should closely monitor the evolving trade policies and tariffs, particularly those affecting pharmaceuticals and critical minerals, as these could impact research funding and partnerships. Engaging with federal agencies to understand the implications of these changes will be crucial for strategic planning.
  • The Vanderbilt Center for International Business should evaluate the potential impacts of new trade deals on international collaborations and partnerships. By identifying opportunities for increased foreign investment and market access, the center can help position Vanderbilt as a leader in global business education and research.
  • Vanderbilt’s School of Engineering should explore opportunities to collaborate with industries affected by tariffs on aircraft parts and automotive components. By aligning research initiatives with industry needs, the school can enhance its role in advancing technological innovation and workforce development.
  • The Vanderbilt Institute for Energy and Environment should assess the implications of increased U.S. energy exports to the EU and other countries. This presents an opportunity to expand research on sustainable energy solutions and to engage in policy discussions on energy security and environmental impact.
  • Vanderbilt’s Economic Research Center should conduct studies on the broader economic impacts of the tariff policies and trade deals. By providing data-driven insights, the center can contribute to policy debates and help shape public understanding of these complex issues.

Opportunities

  • The executive order presents an opportunity for Vanderbilt’s Owen Graduate School of Management to develop programs focused on international trade and economic policy. By leveraging expertise in these areas, the school can attract students interested in careers in global business and trade policy.
  • Vanderbilt can capitalize on the increased focus on reshoring manufacturing jobs by developing partnerships with industries looking to invest in the U.S. This could include joint research initiatives, workforce training programs, and collaborative projects that enhance Vanderbilt’s reputation in industrial innovation.
  • The emphasis on protecting national security through trade policies aligns with Vanderbilt’s commitment to research in defense and security. The university can expand its research initiatives in these areas, potentially securing federal funding and partnerships with government agencies.
  • By engaging with policymakers and industry leaders, Vanderbilt can position itself as a thought leader in the national conversation on trade and economic policy. Hosting conferences, workshops, and public forums on the implications of these policies can further establish Vanderbilt as a hub for innovative economic thought and practice.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on trade, research funding, and international collaborations.)

Average Relevance Score: 3.8

Timeline for Implementation

  • Modified Annex II takes effect on September 8, 2025.

No additional directive deadlines were identified in the text, as other dates relate to external deal milestones rather than internal implementation targets.

Relevance Score: 5

Impacted Government Organizations

  • Department of Commerce: The Secretary of Commerce is delegated the authority to implement trade deals, making this department a central player in executing the modifications to reciprocal tariffs and trade policies.
  • Office of the United States Trade Representative (USTR): The USTR is also designated with implementing authority for negotiating and executing trade deals with international partners as outlined in the executive order.

Relevance Score: 1 (Only 1 or 2 agencies are directly impacted by this executive order.)

Responsible Officials

  • Secretary of Commerce – Responsible for implementing trade deals as part of the executive order’s delegation.
  • United States Trade Representative – Tasked with executing the framework for future reciprocal trade agreements.

Relevance Score: 5 (Directives affect Cabinet-level officials.)

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