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

9/5/2025

Executive Orders

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Action Summary

Authority and Background: Utilizes powers under IEEPA, National Emergencies Act, section 232, and other trade acts to address persistent U.S. trade deficits deemed a national security threat; builds on Executive Orders 14257 and 14326.
Tariff Modifications: Updates Annex II of Executive Order 14257 and revises the Harmonized Tariff Schedule (HTSUS) to reflect changes in reciprocal tariffs, including adjustments based on framework and final trade agreements.
Framework Agreements: Provides for steps to implement current and forthcoming trade and security agreements with foreign partners, including tariff reductions (e.g., zero percent tariff on certain EU products) once specific conditions are met.
Final Agreements Implementation: Directs the Secretary of Commerce and the U.S. Trade Representative to take appropriate actions under final agreements while aligning measures with U.S. national interests and security needs identified under section 232.
Monitoring and Recommendations: Mandates continuous monitoring of trade deficits, non-reciprocal relations, and related economic indicators by key officials, who must update and advise the President on potential further actions.
Delegation and Implementation Measures: Authorizes key officials (Commerce, Homeland Security, USTR) and other senior officials to use full executive powers to carry out the order, including temporary suspension/amendment of regulations and modifications to the HTSUS, with refund provisions for duties if necessary.
General Provisions: Clarifies that the order does not impair agency authorities or create enforceable rights, with publication costs borne by the Department of Commerce.

Risks & Considerations

The Executive Order modifies tariffs and establishes procedures for implementing trade and security agreements, which could impact the cost of imported goods and materials used by Vanderbilt University. This may affect budgeting and procurement strategies, particularly for departments reliant on international resources.
Changes in tariffs and trade agreements could influence the broader economic environment, potentially affecting research funding and partnerships with international institutions. This may necessitate adjustments in strategic planning and collaboration efforts.
The focus on national security and economic threats may lead to increased scrutiny of international collaborations and partnerships, requiring Vanderbilt to ensure compliance with new regulations and policies.
Vanderbilt may need to monitor developments in trade agreements closely to anticipate changes that could impact its operations, particularly in areas related to research, procurement, and international partnerships.

Impacted Programs

Vanderbilt’s Procurement Office may need to adjust its strategies to account for changes in the cost and availability of imported goods and materials due to modified tariffs.
Research departments that rely on international collaborations or imported materials may need to reassess their projects and funding sources in light of potential changes in trade agreements and tariffs.
The Office of International Affairs may need to provide guidance and support to ensure compliance with new trade and security regulations, particularly for international partnerships and collaborations.
Financial Planning and Analysis may need to consider the potential economic impacts of the Executive Order on the university’s budget and financial strategies.

Financial Impact

The modification of tariffs could lead to increased costs for imported goods and materials, impacting the university’s budget and financial planning.
Changes in trade agreements may affect the availability of funding for research projects, particularly those involving international collaborations or partnerships.
Vanderbilt may need to explore alternative funding sources or adjust its financial strategies to mitigate the impact of potential changes in the economic environment.
There may be opportunities for Vanderbilt to engage in research and policy analysis related to the impacts of trade and security agreements, potentially attracting new funding and partnerships.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential impacts on international collaborations and financial planning.)

Key Actions

Vanderbilt’s Office of Federal Relations should closely monitor the developments in trade agreements and tariff modifications, particularly those involving the European Union and other major trading partners. Understanding these changes will be crucial for anticipating potential impacts on research funding and international collaborations.
The Department of Economics should conduct research on the potential economic impacts of the modified tariffs and trade agreements on the U.S. economy and Vanderbilt’s interests. This research can provide valuable insights into how these policies might affect the university’s financial planning and strategic initiatives.
Vanderbilt’s International Student and Scholar Services should assess the potential implications of these trade policies on international students and scholars, particularly those from countries involved in the trade agreements. This assessment will help in adapting support services and maintaining a welcoming environment for international members of the university community.
The Office of Research should explore opportunities for securing funding and partnerships that may arise from the new trade agreements, especially in areas related to technology, pharmaceuticals, and manufacturing. By aligning research initiatives with national priorities, Vanderbilt can enhance its competitiveness in securing federal resources.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Owen Graduate School of Management to develop programs and courses focused on international trade and economic policy. By leveraging its expertise, the school can contribute to the education of future leaders in global commerce and policy-making.
Vanderbilt can capitalize on the increased focus on reciprocal trade agreements by fostering partnerships with international universities and research institutions. This could include joint research initiatives, student exchange programs, and collaborative curriculum development, enhancing Vanderbilt’s global reputation and reach.
The emphasis on reducing tariffs for certain imports offers an opportunity for Vanderbilt’s School of Engineering to engage in research and development of innovative technologies that align with national security and economic priorities. By providing evidence-based recommendations, the school can influence how these technologies are developed and implemented.
By engaging with policymakers and the broader economic community, Vanderbilt can position itself as a leader in the national conversation on trade policy and economic reform. 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 international collaborations and research funding.)

Average Relevance Score: 4

Timeline for Implementation

Annex II Update: Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT, 3 days after the date of the order (i.e., September 8, 2025).
HTSUS Modifications (Annex I): Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT, 3 days after the date of the order (i.e., September 8, 2025).

Relevance Score: 5

Impacted Government Organizations

Department of Commerce: Charged with modifying the HTSUS, implementing tariff modifications, and executing framework and final trade agreements.
United States Trade Representative (USTR): Works in tandem with the Department of Commerce to negotiate and implement trade and security agreements.
Department of Homeland Security (DHS): Plays a role in the enforcement aspects of the order, including oversight of Customs and Border Protection.
U.S. Customs and Border Protection (CBP): Responsible for processing tariff refunds and implementing modifications to tariff classifications as directed.
United States International Trade Commission (USITC): Consulted via its Chair to determine necessary modifications to the Harmonized Tariff Schedule.
Department of State: Consulted for input on trade security matters and ensuring that trade agreements align with U.S. national interests.
Department of the Treasury: Engaged for its expertise in economic policy and revenue implications related to tariff adjustments.
Office of Management and Budget (OMB): Its budgetary and administrative functions are indirectly implicated by the implementation of this executive order.

Relevance Score: 3 (Multiple key trade and regulatory agencies are specifically involved, totaling 8 distinct organizations.)

Responsible Officials

Secretary of Commerce – Charged with implementing tariff modifications, executing both framework and final trade agreements, and managing related updates to the Harmonized Tariff Schedule of the United States (HTSUS).
United States Trade Representative – Responsible for determining and executing actions necessary to implement trade framework and final agreements, and for advising on conditions affecting national security and trade deficits.
Secretary of Homeland Security – Authorized to take necessary actions in support of the order, including modifications to tariffs and coordination with other agencies.
Secretary of State – Consulted to provide insights and recommendations regarding trade agreements and their national security implications.
Secretary of the Treasury – Consulted for advice on the economic and financial aspects associated with the implementation of the order.
Commissioner of U.S. Customs and Border Protection (CBP) – Consulted to determine necessary modifications to the HTSUS and to process duty refund procedures, as applicable.
Chair of the United States International Trade Commission – Consulted on adjustments to the HTSUS and related tariff modifications.
Assistant to the President for Economic Policy, Senior Counselor for Trade and Manufacturing, and Assistant to the President for National Security Affairs – Engaged in advising and updating the President on trade conditions and the national security implications of existing and future agreements.

Relevance Score: 5 (Directives affect Cabinet-level and White House officials with extensive responsibilities in trade, national security, and economic policy.)