US Tariff Policy Undergoes Major Adjustments.
According to the latest news, US President Trump announced an exemption for metal products such as graphite, tungsten, uranium, and gold bars from global country-specific tariffs, while adding silicon products to the tariff list. According to an executive order issued on Friday, these adjustments will take effect locally next Monday.
It is worth noting that the Trump administration’s tariff policy has already had a significant impact on US trade. According to the latest preliminary data released by the US Department of Commerce, the US goods and services trade deficit expanded to $78.3 billion in July, a sharp increase of 33% month-on-month. This round of import surge was mainly driven by industrial supplies, as companies stockpiled heavily ahead of a 39% tariff on Swiss goods. Gold imports surged to $10.5 billion, hitting a record high.
Trump Announces
On September 5th, Eastern Time, Trump signed an executive order announcing the exemption of various metals such as gold, tungsten, uranium, and graphite from its global tariff system, while adding silicon products to the tariff list.
According to CCTV News, on September 5th local time, a White House statement said US President Trump signed an executive order to adjust the scope of import tariffs and implement trade and security framework agreements with foreign trade partners.
The new policy will officially take effect next Monday. According to media reports, this tariff adjustment covers goods in multiple key areas. In addition to the aforementioned metals, goods such as aircraft parts, generic drugs, and commodities like coffee and special spices that cannot be grown or produced domestically in the US are also expected to receive tariff reductions.
Notably, the policy clarifies the exempt status of gold bars. Weeks ago, a ruling by US Customs and Border Protection that gold bars were subject to import duties shocked traders and caused confusion.
Gold bars are one of the important commodities exported from Switzerland to the US, but because Switzerland has not yet reached a trade agreement with the US, they currently face tariffs as high as 39%.
Besides gold, a range of minerals used in high-tech and critical industries have also received tariff exemptions.
These include critical materials such as graphite and tungsten, which are widely used in aerospace, consumer electronics, medical devices, and other technological fields. Uranium was also added to the exemption list.
Furthermore, various pharmaceuticals have received new tariff reductions, such as antibiotics and other drugs. It is worth noting that these drugs are already the subject of another ongoing trade investigation by the US Department of Commerce.
Products that the US cannot grow, mine, or naturally produce domestically, such as specialty spices and coffee, as well as some rare metals, are also expected to receive tariff exemptions.
The executive order also introduces a significant procedural shift aimed at improving the efficiency of implementing trade agreements.
Under the new authorization, the Office of the US Trade Representative and the Department of Commerce will have the authority to take direct action to implement framework agreements reached with other countries, such as those Trump has already signed with the EU, Japan, and South Korea. This means that in the future, when implementing tariff reduction clauses in these agreements, it will no longer be necessary for Trump himself to sign executive orders one by one, which is expected to significantly speed up the implementation process.
US July Trade Deficit Hits Four-Month High
According to the latest preliminary data released by the US Department of Commerce, the US goods and services trade deficit expanded to $78.3 billion in July, a sharp increase of 33% month-on-month, reaching the highest level in four months. Bloomberg’s previous expectation was $78.0 billion.
Data shows that US imports in July were $358.8 billion, with total July imports growing by 5.9%, the largest monthly increase this year; exports were $280.5 billion, an increase of 0.3% month-on-month.
Year-to-date, the US goods and services trade deficit has increased by $154.3 billion compared to the same period in 2024, an increase of 30.9%. Among them, exports increased by $103.1 billion, an increase of 5.5%; imports increased by $257.5 billion, an increase of 10.9%.
This round of import surge was mainly driven by industrial supplies, as companies stockpiled heavily ahead of a 39% tariff on Swiss goods. Gold imports surged to $10.5 billion, hitting a record high. Besides gold, imports of consumer goods and capital equipment excluding automobiles also rose across the board, indicating that companies are comprehensively responding to anticipated changes in the tariff environment.
Analysts believe that US companies rushed to import goods and materials before Trump announced new tariffs on global trade partners, leading to the expansion of the US trade deficit in July to a four-month high. This expectation of additional tariffs also led to a significant increase in gold shipments, which similarly pushed up the total US import volume.
According to Bloomberg, the Trump administration announced a new round of global tariff policies in April. Companies imported in advance to avoid risks, causing a sharp jump in first-quarter data. Imports had then declined for three consecutive months before surging again in July.
Data shows that this strong monthly volatility is disrupting the logic of US GDP statistics. Gold is accounted for separately in GDP calculations by the US side, so the sharp increase in related imports may also bring “anomalies” in subsequent data.
US Manufacturing Contracts for 6th Consecutive Month
According to US media reports, the latest survey released recently by the Institute for Supply Management (ISM) showed that the country’s Manufacturing Purchasing Managers’ Index (PMI) rose slightly from 48.0 in July to 48.7 in August. This figure has remained below the 50% boom-bust line for the past 6 months, meaning US manufacturing has contracted for 6 consecutive months.
The survey stated that some factories反馈 (feedback indicated) the current business environment is “much worse than during the Great Recession of 2007-2009.” Many factory owners attributed this to the Trump administration’s tariff policies and the uncertainty they create, complaining that “manufacturing products in the US has become exceptionally difficult.”
Furthermore, US government data shows that factory construction spending in July decreased by 6.7% year-on-year, also confirming that manufacturing investment enthusiasm is cooling.
Taking the automotive industry within manufacturing as an example. According to industry data cited by Bloomberg, almost all automakers producing cars in the US currently face similar difficulties: every car produced in the US contains an average of 50%-60% imported parts. However, the US government imposes a 50% tariff on imported steel and aluminum and their derivative products, and a 25% tariff on key automotive components. This makes US automakers, who boast a high degree of localization, more vulnerable to tariff impacts.
According to US media reports, Ford Motor Company expects that full-year tariff impacts will erode its profits by approximately $2 billion, while the company’s operating profit last year was $10.2 billion. The tariff policy is “nothing short of a heavy blow” to the company.
The minority party (Democratic) of the US Congress Joint Economic Committee warned in an August report that the Trump administration’s tariff policy would severely hit US manufacturing investment.
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