Amid the initial tariff shocks of April 2, the market corrections after and continued uncertainty since, a new wild card has been dealt from the Oval Office that could help many businesses: presidential tariff exemptions.

Exemptions could be the most direct option for an entity seeking a legal way to avoid or mitigate the tariffs. As quarterly reports across an array of sectors this month have shown, global CFOs are struggling to forecast their business growth for 2025. Facing uncertainty, one thing is predictable: if your company can earn an exemption from the tariffs, it will surely be in a better position to plan its supply chain, reduce costs and retain profitability.

President Trump announced on March 6 exemptions for U.S. tariffs on Canadian and Mexican goods generally, and on April 14, exemptions for U.S. tariffs on smartphones, computers and other electronics imported from China. The president’s current consideration of pausing tariffs on auto parts – framed as a way to give U.S. manufacturers time to onshore some parts of the supply chain – is a reminder that on the edges of the black-and-white nature of tariff announcements is a more nebulous grey zone, where countries and sectors can still earn exemptions, and perhaps even more valuable than those granted in the first Trump Administration.

A history of granting exemptions

During President Trump's first term, a reported 15-25% of companies that applied for tariff exemptions were granted them. In that era, there was a clear process for submitting exemption requests. 

Of the businesses whose exemption requests were denied, many typically shared one critical mistake: they didn’t include government affairs sufficiently as an integral component of their strategy. Some submitted forms and crossed their fingers, overlooking the importance of stakeholder engagement and political considerations. Others may not have had the staffing capacity or governmental affairs experience to strategically navigate the ever-changing rules. 

No formal tariff exemption process has been announced so far this term, but the White House’s on-and-off approach – pausing some tariffs, delaying others and granting full exemptions for goods deemed essential to the economy or national security – all combine to show there is an opening for companies or industry sectors to pursue exemptions once again.

Strategies for securing exemptions

To successfully navigate the exemption process, companies should:

1. Build a coalition of U.S. stakeholders: Rather than making your case in isolation, build or strengthen relationships with your American contacts, including farmers, factory owners, industry leaders and elected officials from states who depend on trade-related jobs and understand the immediate impact tariffs have on local incomes and security. These voices can have greater weight with the Administration.
2. Emphasize national security impact: Demonstrate how your product contributes to U.S. national security interests to significantly increase exemption chances. Businesses who can most easily frame their value in terms of American power – strengthening of our strategic capabilities – are more likely to get the attention of the Trump administration.
3. Highlight U.S. job creation: Quantify and highlight the American jobs your business creates or supports, even if they’re not tied to manufacturing. This includes logistics, distribution, sales and support positions that are jeopardized by tariffs.

Engaging the current Administration

In today's rapidly evolving trade environment, the approach that worked yesterday may not work tomorrow. This makes it imperative to ensure you have:

• Real-time insights into policy, political and geopolitical shifts
• Access to key decision-makers
• Knowledge of formal and informal processes
• Experience with tariff exemption applications under prior administrations

Coupling these resources with the approaches covered above creates a high likelihood of engaging the Administration on solutions that can result in tariff exemptions. Porter Wright’s Government & Regulatory Affairs team is more than happy to support you in these efforts.

Corey L. Norton advises clients on a wide range of U.S. and foreign laws and business issues affecting international trade. He has served various industries worldwide, served as in-house counsel based in Asia for a leading global manufacturer, served as a U.S. government advisor and been immersed in factories, ports and supply chains.

Neil H. Simon advises clients on government affairs, communications and corporate affairs. As a former diplomat, congressional aide and journalist, has managed public affairs campaigns to strengthen trade relations between companies and countries from Europe, Asia and Latin America in sectors ranging from energy and technology to food and agriculture.

Chess Bedsole advises clients on a variety of government relations matters, including tariff waivers, Office of Foreign Assets Control (OFAC) transfers, economic development projects and governmental grant programs. His political experience includes serving as an advisor, state director and Director of Florida Election Day Operations for the Donald Trump for President campaign.