Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended

Memorandums

TLDR

This executive order exempts semiconductors from reciprocal tariffs implemented on April 2, 2025 (EO 14257) by specifically listing 20 HTSUS codes of exempt products. The exemption is retroactive to April 5, 2025, with provisions for refunding collected duties. This carve-out likely reflects semiconductors’ strategic importance, global supply chains, industry lobbying, and alignment with reshoring priorities.

This memorandum clarifies exceptions to Executive Order 14257 from April 2, 2025, which implemented reciprocal tariffs to address U.S. trade deficits. It specifically defines which semiconductor products are exempt from these tariffs by listing their Harmonized Tariff Schedule (HTSUS) codes.

Key points include:

  1. The original EO 14257 (April 2, 2025) declared a national emergency due to “large and persistent annual U.S. goods trade deficits”
  2. This memorandum specifically defines “semiconductors” as exempt from the tariffs
  3. It provides 20 specific HTSUS codes covering semiconductor products
  4. The clarification is retroactive to April 5, 2025, with provisions for refunding already collected duties
  5. Multiple cabinet secretaries and presidential advisors are authorized to implement these orders

This memorandum represents a significant carve-out from Trump’s broader tariff policy. While the administration has imposed new tariffs under the justification of a “national emergency” related to trade deficits, the semiconductor industry receives special protection.

This exemption likely reflects:

  1. The strategic importance of semiconductors to U.S. national security and technology leadership
  2. The global and interconnected nature of semiconductor supply chains
  3. Possible industry lobbying efforts
  4. Alignment with other administration priorities like reshoring manufacturing

The retroactive refund provision suggests possible confusion or implementation challenges with the original order. The broad authorization given to cabinet officials indicates this policy may continue to evolve through administrative rather than legislative action.

This action follows the initial “reciprocal tariff” orders from early April 2025 and appears to be part of the administration’s broader trade agenda, particularly focused on addressing trade deficits.

MEMORANDUM FOR THE SECRETARY OF STATE THE SECRETARY OF THE TREASURY THE SECRETARY OF COMMERCE THE SECRETARY OF HOMELAND SECURITY THE UNITED STATES TRADE REPRESENTATIVE THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY THE ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS THE SENIOR COUNSELOR TO THE PRESIDENT FOR TRADE AND MANUFACTURING THE CHAIR OF THE UNITED STATES INTERNATIONAL TRADE COMMISSION

SUBJECT: Clarification of Exceptions Under Executive

Order 14257 of April 2, 2025, as Amended

In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits), I declared a national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits, and imposed additional ad valorem duties that I deemed necessary and appropriate to deal with that unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security and economy of the United States.

In Executive Order 14257, I stated that certain goods are not subject to the ad valorem rates of duty under that order. One of those excepted products is “semiconductors.” The subsequent orders issued in connection with Executive Order 14257 — i.e., Executive Order 14259 of April 8, 2025 (Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People’s Republic of China), and the Executive Order of April 9, 2025 (Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment), (Subsequent Orders) — incorporate the exceptions in Executive Order 14257, including for “semiconductors.”

That term’s meaning includes the products classified in the following headings and subheadings of the Harmonized Tariff Schedule of the United States (HTSUS):

· 8471

· 847330

· 8486

· 85171300

· 85176200

· 85235100

· 8524

· 85285200

· 85411000

· 85412100

· 85412900

· 85413000

· 85414910

· 85414970

· 85414980

· 85414995

· 85415100

· 85415900

· 85419000

· 8542

To the extent that the HTSUS does not currently fully reflect the products listed above as excepted from the ad valorem duties imposed under Executive Order 14257 and the Subsequent Orders, 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, effective as of 12:01 a.m. eastern daylight time on April 5, 2025. Any duties that were collected at or after 12:01 a.m. eastern daylight time on April 5, 2025, pursuant to Executive Order 14257 and the Subsequent Orders, on imports that are excepted under Executive Order 14257 and the Subsequent Orders because they are “semiconductors,” as explained in this memorandum, shall be refunded in accordance with U.S. Customs and Border Protection’s standard procedures for such refunds.

As explained in Executive Order 14257 and the Subsequent Orders, the Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, the Assistant to the President for National Security Affairs, the Senior Counselor to the President for Trade and Manufacturing, and the Chair of the United States International Trade Commission, are authorized to employ all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) as may be necessary to implement Executive Order 14257 and the Subsequent Orders. Measures taken to implement Executive Order 14257 and the Subsequent Orders shall be done in accordance with this memorandum.

DONALD J. TRUMP