Reciprocal Tariff Exclusions for Specified Products

What Is Reciprocal Tariff Exclusion Guidance?

In early 2025, American importers faced a whirlwind of new reciprocal tariffs that threatened to drive up costs on almost every foreign good. On April 5, a blanket 10% tariff hit imports from nearly all countries, with President Trump announcing even steeper country-specific rates days later. Businesses braced for chaos, but certain key industries were offered a lifeline as high-priority imports, like smartphone components, became eligible for reciprocal tariff exclusions.

Roughly 20% of US imports were initially excluded from the “Liberation Day” reciprocal tariffs announced in April. In fact, 1,039 product categories were carved out as exceptions, including pharmaceuticals, semiconductors, medical supplies, lumber, copper, and certain energy products. Some of these categories were exempt because they were already subject to different tariffs, like the Section 232 tariffs on steel and aluminum. These exclusions helped shield key industries from the most severe impacts of the new tariff measures.

Eligibility Criteria for Reciprocal Tariff Exclusions

Product categories considered for exclusion typically fall into one or more of the following:

• Items critical to public health or national security, such as pharmaceuticals and medical devices

• Components essential to major domestic industries, including electronics and aerospace

• Inputs with limited or no viable domestic substitutes, such as specific chemicals, raw materials, or technical machinery

How to Apply for Reciprocal Tariff Exclusions

Classify products correctly to claim exclusions. If your imports fall under one of the exempted HTS categories (such as semiconductors, pharmaceuticals, or specific machinery), you must flag that on your customs entry. CBP’s guidance specifies that importers should report the secondary HTS code 9903.01.32 (or other applicable Chapter 99 code) for excluded products.

CBP also allowed products entered on or after April 5 to be corrected within 10 days of release, and for already-paid duties to be refunded via post-summary corrections or protests. It’s important to stay on top of these filings to avoid unnecessarily paying tariffs. 

Leverage US content in your products. What if your product category isn’t on the exclusion list? There’s another angle: the reciprocal tariffs deliberately don’t apply to the US-made portion of a product. According to the Executive Order, if at least 20% of a product’s value is from US-origin components, then the tariff is charged only on the remaining foreign content value. 

This means importers can reduce tariff costs by carefully documenting the American-made parts or materials in their imports. Customs may require proof (like certificates of origin, bills of materials, and manufacturing details) to verify that at least one-fifth of the product is indeed US content. 

This “content exclusion” essentially rewards companies for sourcing domestically. It also encourages foreign suppliers to incorporate more US-made components if they want to maintain price competitiveness. The key for importers is to maintain good records and be ready to declare the US content on entry documentation.

List of Specified Products Eligible for Reciprocal Tariff Exclusion

Products excluded from the reciprocal tariffs include:

• Goods already covered by Section 232 tariffs, such as steel and aluminum articles and automobiles/auto parts, are generally excluded because those duties operate under a separate legal authority.

• Agricultural products added in the November 2025 expansion, including hundreds of HTS codes for crops and foodstuffs, are excluded from reciprocal tariffs as long as the correct exemption HTS is claimed.

• Certain electronics and semiconductor-related goods such as smartphones, laptops, memory chips, and flat panel displays were exempted from the reciprocal tariff list beginning in April 2025, reducing duty exposure for many tech imports, though they may still face other duties (for example, under IEEPA or Section 301 when China is involved).

Other products listed in Annex II of Executive Order 14257, including copper, lumber, pharmaceuticals, semiconductors, key minerals, and energy-related products. On April 11, 2025, Trump also broadened Annex II to include more HTS headings and subheadings, declaring that smartphones, computers, and a wider range of electronic devices were also eligible for exclusion 

Why Being Listed in Annex II Does Not Guarantee an Exemption

The most common and costly mistake importers make with reciprocal tariff exclusions is assuming that a heading on the Annex II list automatically means their specific product is exempt. It does not. Exemption depends on classifying the specific product correctly under the chapter notes and the General Rules of Interpretation, and two products that share the same four-digit heading can produce opposite outcomes.

Common scenarios where Annex II coverage breaks down:

• Subheading-level differences: Annex II is a mix of four-, six-, eight-, and ten-digit codes. A four-digit heading on the list does not necessarily exempt every subheading underneath it; the exemption applies only at the level of specificity published in the Annex.

• Composite or multi-purpose products: When a product contains multiple components or serves more than one function, the General Rules of Interpretation (particularly GRI 3) determine the controlling classification. A product the importer reads as belonging to an Annex II heading may, under GRI 3, sit in a non-exempt heading.

• Material composition changes: Adding or removing a material, steel, aluminum, lithium-ion battery cells, can shift the classification entry by entry, even for products that look visually identical.

• End-use distinctions: Some HTSUS provisions distinguish between consumer and industrial use, or between assembled and unassembled forms. A product on the Annex II list at the heading level may fall outside the exempt subheading once end-use is documented.

The practical step at entry is to report the correct Chapter 99 code (9903.01.32 for Annex II-listed articles, which applies regardless of country of origin) alongside the standard 10-digit HTSUS classification. CBP guidance requires that secondary Chapter 99 code on the entry summary to claim the exemption, without it, the ACE system applies the reciprocal duty even when the product is genuinely Annex II-eligible.

When classification is genuinely uncertain, a binding ruling from CBP is the safest path. It produces a written, product-specific determination that locks in the exemption claim and protects against retroactive penalty if the ruling is followed in good faith.

Impact of Reciprocal Tariff Exclusions on Import Costs

Even with exclusions, the broader reciprocal tariff framework continues to raise overall import costs:

• Exempting key categories like electronics, semiconductors, and agricultural goods has mitigated some of the worst duty impacts following broad tariff hikes in 2025, especially for tech supply chains and food prices.

• Analysts estimated that reciprocal tariffs overall still added tens of billions in extra costs to US businesses and consumers in 2025, though specific exemptions likely prevented higher price inflation in some sectors.

• Without exclusions for semiconductors or pharmaceuticals, sectors critical to manufacturing and healthcare would have faced steeper cost pressures; exemptions helped maintain some price stability.

However, even excluded products can carry other duties, and importers must still monitor classification updates and compliance requirements to fully leverage exclusions on their entries.

Updates and Changes in 2026

The tariff landscape in 2026 is constantly evolving. As legal and policy developments continue to shift the rules, it's important to stay vigilant. Importers should monitor trade developments weekly and stay in touch with legal counsel, compliance updates, and CBP guidance. The ability to act quickly, whether adjusting sourcing, coding entries correctly, or petitioning for product-specific relief, can translate into major cost savings and competitive advantage.

What the 2026 Supreme Court Ruling Means for Reciprocal Tariff Exclusions

On February 20, 2026, the US Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that IEEPA does not authorize presidential tariffs, effectively invalidating the reciprocal tariffs imposed under Executive Order 14257. 

For importers, the ruling reshapes the picture in two ways. 

• Past IEEPA duties became refundable: CBP's new CAPE (Consolidated Administration and Processing of Entries) refund module in ACE, which went live on April 20, 2026. Phase 1 covers certain unliquidated entries plus entries liquidated within 80 days of the CAPE submission date. Refunds are generally issued within 60 to 90 days of CAPE acceptance and paid via ACH, although the exact timeline depends on submission accuracy, validation outcomes, and CBP processing requirements outlined in the tariff refund process.  

• The strategic value of Annex II coverage changed: Where Annex II previously offered the cleanest path to avoid the reciprocal tariff, every IEEPA-paid entry is now a potential refund opportunity. That does not eliminate the value of correct Annex II classification, reporting the right Chapter 99 code at entry remains the cleanest forward path, but it opens a retrospective lane for entries where the exemption was missed or improperly applied.

The administration has signaled that similar reciprocal measures may be pursued under other statutory authorities, including Section 122 (balance-of-payments), Section 232 (national security), or Section 301 (unfair trade practices). Each carries different procedural constraints and different exclusion frameworks. The Annex II concept is unlikely to disappear; what will change is the legal foundation underneath it, and importers should plan for a moving target rather than a settled rule.

Frequently Asked Questions

Does a product listed in Annex II automatically qualify for the exclusion?

No. Annex II provides exclusion at the specific code level listed in the order, not for every product under a parent heading. The product must classify correctly under the chapter notes and General Rules of Interpretation into a code that is enumerated in Annex II, and the importer must report Chapter 99 code 9903.01.32 at entry to claim the exemption.

How do I claim a reciprocal tariff exclusion at entry?

Report two HTSUS codes on the entry summary: the standard 10-digit classification for the product, and the relevant Chapter 99 code (9903.01.32 for Annex II articles, or 9903.01.34 for the 20% US content provision). Without the Chapter 99 code, the ACE system applies the reciprocal tariff even when the product is exemption-eligible.

Were reciprocal tariffs affected by the 2026 Supreme Court ruling?

Yes. On February 20, 2026, the Court ruled 6-3 in Learning Resources v. Trump that IEEPA does not authorize the President to impose tariffs. Because the reciprocal tariffs were imposed under IEEPA, the ruling invalidated them. Refunds on already-paid IEEPA duties are now being processed through CBP's CAPE module in ACE.

Can I get a refund on reciprocal tariffs I already paid?

Yes, if the entry qualifies for Phase 1 of the CAPE refund process. Phase 1 covers unliquidated entries and entries liquidated within 80 days of the CAPE submission date. Importers, or designated brokers, file a CSV CAPE Declaration in ACE, and refunds typically issue within 60 to 90 days of acceptance, paid via ACH.

What is the US content rule for reciprocal tariffs?

Under Executive Order 14257, articles with at least 20% US-origin content are not subject to reciprocal tariffs on the US portion of the product value; only the non-US content is dutied. Importers claim this by reporting HTSUS code 9903.01.34 and maintaining documentation (certificates of origin, bills of materials, manufacturing records) to support the US content share.