EO 14346 modifies reciprocal-tariff scope; creates PTAAP Annex

On 5 September 2025 President Donald J. Trump signed Executive Order 14346, “Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements,” published in the Federal Register on 10 September 2025.¹ Section 1 modifies subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS — the Annex II carve-out list to EO 14257 — by adding bullion-related articles, certain critical minerals subject to pending Section 232 investigations and certain pharmaceutical products under Section 232 investigation, and by removing certain aluminum hydroxide, resin and silicone categories.¹ Section 4 creates the Potential Tariff Adjustments for Aligned Partners (PTAAP) Annex, listing categories (certain aircraft parts, generic pharmaceuticals, specified agricultural products and natural resources unavailable or unavailable in sufficient quantities domestically) for which qualifying partner countries concluding security or trade agreements may receive MFN treatment.¹ Goods removed from Annex II become subject to the country-specific reciprocal rates effective 12:01 a.m. EDT on 8 September 2025; goods added to Annex II are exempt from the reciprocal regime from that time.¹ The order is the immediate sequel to EO 14345 of 4 September 2025 (implementing the US-Japan framework) and amends EO 14257 as previously modified by EOs 14266, 14298 (China-specific), 14316, 14326 and 14345.² EO 14346 invokes IEEPA (50 U.S.C. § 1702(a)(1)(B)), the National Emergencies Act (50 U.S.C. § 1601 et seq.), § 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862), § 604 of the Trade Act of 1974 (19 U.S.C. § 2483) and 3 U.S.C. § 301.³⁴⁵⁶

1. Annex II carves out from the IEEPA reciprocal schedule product categories under active Section 232 investigation, preserving the prospect of a separate Section 232 duty without IEEPA stacking. EO 14289 of 29 April 2025 establishes precedence only among Section 232 auto/parts, EO 14193, EO 14194, Section 232 steel and Section 232 aluminum; goods newly outside Annex II that face both reciprocal and § 301 China duties, or reciprocal and IEEPA fentanyl duties (China-origin), continue to stack cumulatively.⁷

2. CBP collects the duty under HTSUS Chapter 99 subchapter III subheadings activated by the EO 14346 amendments; the EU framework implementation invokes 9903.02.76 and 9903.02.77, and the US-EU auto/parts framework activates 9903.94.50 through 9903.94.53.⁸⁹ The China track under EO 14298 is unaffected by EO 14346’s modifications.¹⁰

3. On 29 August 2025 the Federal Circuit, sitting en banc, held 7-4 in V.O.S. Selections, Inc. v. United States, No. 25-1812 (Fed. Cir.) that 50 U.S.C. § 1702(a)(1)(B) does not authorise the reciprocal tariffs imposed under EO 14257; declaratory relief was affirmed and the universal injunction vacated in light of Trump v. CASA, Inc., 145 S. Ct. 2540 (2025), with the mandate stayed until 14 October 2025.¹¹¹² The government petitioned for certiorari on 4 September 2025, the day before EO 14346.¹³