Published on April 11, 2025
This presidential memorandum clarifies exemptions for semiconductor products from tariffs implemented under Executive Order 14257, which addressed U.S. trade deficits through reciprocal tariffs. The action specifically defines semiconductor products through detailed HTSUS codes and mandates refunds for any duties incorrectly collected since April 5, 2025, while empowering various cabinet members and officials to implement these changes.
While presented as a technical clarification, this action could be interpreted as a strategic move to maintain preferential treatment for specific technology companies and trading partners without broader public scrutiny. The extensive list of HTSUS codes provides selective protection for certain semiconductor-related products while potentially leaving related technologies subject to tariffs, suggesting possible influence from industry lobbying. The retroactive refund provision could particularly benefit large semiconductor importers who may have already priced these tariffs into their products, effectively creating a windfall profit opportunity.
Though framed as a straightforward administrative clarification of existing policy, this action appears to create targeted advantages for specific industry players while maintaining the broader tariff structure affecting other sectors. The public should carefully consider how this selective enforcement of trade policy might impact domestic manufacturing, technology supply chains, and market competition in ways that extend beyond the stated goal of 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