Exemptions Emerge as Policy Cornerstone

The Trump administration is rapidly broadening tariff carveouts even as it deploys new duties under Section 232 of the Trade Expansion Act, signaling a strategic shift toward a managed exemption regime. While the administration continues to present tariffs as a pillar of national economic security, recent actions indicate increasing reliance on exemptions to shield politically sensitive sectors—and, critically, to insulate the U.S. defense industrial base from cost increases.