President Donald Trump revealed Wednesday he may grant exemptions to certain companies hurt by his sweeping tariffs based primarily on his “instinct” rather than established economic analysis.
“You almost can’t take a pencil to paper. It’s really more of an instinct than anything else,” Trump told reporters during a press conference with Treasury Secretary Scott Bessent. “Some companies, through no fault of their own, they happen to be in an industry that is more affected by these things than others.”
The vague process, without established guidelines or oversight, creates a situation where companies may need to appeal directly to the administration for relief. Trump’s statement that “you have to be able to show a little flexibility, and I’m able to do that” suggests a personalized approach to exemptions that could advantage businesses with stronger connections to the White House.
The administration has already carved out exemptions for approximately $644 billion in imports following Trump’s “Liberation Day” tariff announcements, which imposed a 10% universal tariff on imported goods plus higher “reciprocal” tariffs targeting China and European Union countries.
The Wall Street Journal reports $185 billion of these exemptions benefit goods from Canada and Mexico, though these nations face other trade restrictions.
Trump’s approach to trade policy has introduced significant uncertainty for businesses. His metaphorical explanation about needing to go “under the wall, around the wall or over the wall” when obstacles appear did little to clarify his decision-making process, instead highlighting the unpredictable nature of the exemption system.
Pharmaceutical companies, temporarily exempted while undergoing a Section 232 investigation, may soon face what Trump described as “a major tariff” despite the ongoing review. At a National Republican Congressional Committee dinner Tuesday night, Trump indicated pharmaceutical tariffs would be announced “very soon,” suggesting the investigation’s outcome may already be predetermined.
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