President Donald J. Trump has issued a memorandum clarifying exceptions under Executive Order 14257, initially enacted on April 2, 2025. The order addresses a national emergency caused by substantial U.S. goods trade deficits and imposes additional ad valorem duties to counter this threat to the U.S. economy and national security.
The memorandum specifies that certain goods, notably semiconductors, are not subject to these additional tariffs. These exceptions are reinforced in subsequent executive orders, specifically Executive Order 14259 issued on April 8, 2025, and another order dated April 9, 2025. The term "semiconductors" is defined to include products classified under several headings and subheadings of the Harmonized Tariff Schedule of the United States (HTSUS).
"One of those excepted products is 'semiconductors,'" President Trump states, highlighting the incorporation of exceptions across the related orders.
Detailed classifications affected by these exceptions include HTSUS headings such as 85421000, 8471, and 8486, among others. These items will be added to the HTSUS in numerical order, effective from 12:01 a.m. Eastern Daylight Time on April 5, 2025. Duties collected on these excepted semiconductor imports post this time will be refunded following U.S. Customs and Border Protection procedures.
"The HTSUS shall be modified by inserting in numerical order the headings and subheadings listed above into subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99," according to the memorandum.
The Secretary of Commerce and the U.S. Trade Representative, along with several key administrative officials, including the Secretary of State and the Secretary of the Treasury, are authorized to utilize powers granted under the International Emergency Economic Powers Act to implement the executive orders effectively.
"Measures taken to implement Executive Order 14257 and the Subsequent Orders shall be done in accordance with this memorandum," states Trump.
The clarification aims to ensure correct implementation of tariffs while maintaining the necessary exceptions, specifically for the semiconductor industry, reducing undue burdens on this critical sector.
