Various "Exemptions"! Before the U.S. Supreme Court hearing in November, the Trump administration "adjusts" its tariff strategy

The Trump administration is quietly adjusting its signature tariff policy.

As the Supreme Court is set to hold a hearing on "reciprocal tariffs" in early November, the Trump administration has recently exempted tariffs on dozens of goods and proposed tariff exemptions on hundreds of items during trade agreement negotiations with various countries.

On October 19, media reports citing informed sources indicated that this shift reflects a growing consensus within the government that the U.S. should lower tariffs on non-domestically produced goods. Meanwhile, the Trump team is expanding the use of the more legally solid Section 232 of the Trade Expansion Act of 1962, which has already been used as the basis for imposing tariffs on metals and automobiles, and announced a new round of tariffs on heavy trucks, pharmaceuticals, and furniture this month.

This strategic adjustment comes at a critical time; if the Supreme Court rules against the government, the White House may be forced to refund a large amount of collected tariffs. Informed sources revealed that the advancement of the exemption policy reflects the Trump team's hedging strategy in the face of legal risks.

Significant Expansion of Exemption Scope

Last month, Trump exempted tariffs on dozens of goods ranging from gold to LED lights through an attachment two list, covering various minerals, chemicals, and metal products. Many of these products have been or will be subject to Section 232 tariffs.

Notably, he also previewed the potential for hundreds of future exemptions. According to the executive order he signed, a product list potentially referred to as "Attachment Three" outlines hundreds of items that may receive zero tariff treatment in the future. This list targets products "that cannot be grown, mined, or produced naturally in the U.S.," including certain agricultural products, aircraft and aircraft parts, as well as non-patented items used in pharmaceuticals.

The September executive order also authorized the Department of Commerce and the Office of the U.S. Trade Representative to approve tariff exemptions independently, without requiring Trump to sign an executive order each time. White House officials stated that this move would simplify the implementation process of tariff policies, facilitating the execution of more than a dozen trade agreements already announced by Trump.

Legal Strategy Shifts to Section 232

While adjusting the "reciprocal tariff" exemption policy, the Trump administration is intensifying its use of Section 232. This provision has a more solid legal foundation than "reciprocal tariffs," and Trump has already utilized it to impose tariffs on metals and automobiles.

On Friday, Trump announced a 25% tariff on trucks and truck parts and a 10% tariff on buses under Section 232, effective November 1. This action also expanded the tariff exemption program for automobile manufacturers, allowing them to apply for credits to partially offset the costs of tariffs on automobiles and truck parts, extending the deadline from 2027 to 2030.

Protectionist allies of Trump believe that Section 232 tariffs will ultimately be more effective in driving manufacturing back to the U.S. Nick Iacovella, Executive Vice President of the Alliance for Prosperity, stated:

"Imposing tariffs on products that the U.S. cannot produce makes no sense. Section 232 is the most effective tool."

The adjustment of tariff policy indicates a clear softening of the policy stance. U.S. Secretary of Commerce Howard Lutnick had insisted for months that "reciprocal tariffs" had "no exemptions, no exceptions." However, he softened his stance in a television interview at the end of July, stating:

"If you grow something and we don't, it can be imported with zero tariffs."

Companies Actively Seeking Exemptions

Companies are gradually obtaining exemptions in response to tariff exemption requests. The Consumer Brands Association sent a letter to the Trump administration in March this year, urging officials to exempt tariffs on goods such as coffee, oats, cocoa, spices, tropical fruits, and tinplate used for food cans. Currently, many of these goods have been included in Annex 3 and may be exempted in countries that sign trade agreements with the United States.

Candy giant Hershey stated in May that it is "in discussions with the U.S. government" seeking cocoa exemptions. Cocoa tariffs have exacerbated the challenges faced by this Pennsylvania chocolate manufacturer, which has been dealing with high core ingredient prices and has stated that it is taking all possible measures to seek changes to cocoa tariffs.

Some food companies have indicated they will raise prices to offset the cost increases brought about by tariffs, while others are trying to maintain price stability. Andy Mecs, president of Chicken of the Sea, a seafood company under Thailand's Charoen Pokphand Group, stated that despite the sensitivity of tuna prices and facing tariffs, the company is still working to control the prices of its core canned tuna products