If you’ve been watching the stock market lately, you know it’s basically a roller coaster powered by Truth Social posts. One day we’re looking at 145% reciprocal levies on China, and the next, there’s a sudden pivot. Just this week, the narrative shifted again as President Trump says he could exempt some companies from tariffs, provided they play ball with his "America First" checklist.
Honestly, it’s not just a blanket "no" to taxes anymore. It’s a negotiation.
We are seeing a very specific pattern emerge in early 2026. If you are a massive corporation like AbbVie or Johnson & Johnson, there is a path to getting those soul-crushing duties wiped off your balance sheet. But it isn't free. You've gotta build, hire, or lower prices domestically to get the hall pass.
The Price of Admission: How Companies Are Winning Exemptions
The White House isn't just handing out favors. They’re trading them. Take the massive deal with AbbVie that just hit the wires on January 12, 2026. The pharmaceutical giant basically bought its way out of the tariff doghouse by pledging a staggering $100 billion investment into U.S. operations over the next decade.
Think about that number. $100 billion.
In exchange, they aren't just getting a break on import duties; they're also getting a shield against future pricing mandates. It's a "peace for prosperity" trade. Johnson & Johnson did something similar by joining the TrumpRx platform. By agreeing to cap prices and align them with European levels, they secured their own exemption.
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It’s clear: if you help the administration check a political box—like lowering drug prices or building a factory in North Carolina—the "beautiful" tariffs suddenly become optional for you.
Why President Trump Says He Could Exempt Some Companies From Tariffs Now
Why the change of heart? Or is it a change of heart at all?
Kinda. The administration is currently facing a massive legal hurdle at the Supreme Court over the use of the International Emergency Economic Powers Act (IEEPA) to hike these rates. There’s a real chance the court could rule these levies illegal. In fact, the Department of Justice just filed a document on January 12, 2026, admitting that if the Court rules against them, the government will have to issue tariff refunds for goods from countries like India and Brazil.
That puts the White House in a squeeze.
By offering exemptions now, they can:
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- Encourage companies to settle and invest before a court ruling.
- Mitigate the "doomsday scenarios" Wall Street analysts like Dan Ives have been shouting about.
- Create a "carrot and stick" environment where the stick is a 25% tariff on anyone doing business with Iran (a new order as of Jan 13, 2026) and the carrot is a total exemption for "aligned partners."
Who’s Actually on the List?
It’s not just Big Pharma. The list of who gets a pass and who gets taxed is getting complicated. The 2026 Harmonized Tariff Schedule is already a mess of "Annexes."
Right now, Annex III (Potential Tariff Adjustments for Aligned Partners) is the place to be. If you're importing aircraft parts, certain generic meds, or "unavailable" natural resources, you might see a 0% rate. But if you’re Mattel or Apple? You’re still under the microscope.
Trump has been very vocal about the semiconductor sector. He recently threatened 100% tariffs on chips, but—and here is the kicker—he specifically said he would exempt companies building or committed to building in the U.S. It’s a blunt instrument used for precision engineering of the economy.
The Chaos Factor: Reality vs. Rhetoric
Don't get it twisted; this is still a trade war. Just because some companies are getting a "get out of jail free" card doesn't mean the pressure is off.
Just yesterday, a new 25% tariff was announced for any country doing business with Iran. That hits China and India right in the gut. There were no details on exemptions for that one. It’s a "final and conclusive" order, according to the President's social media.
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So, you have this weird duality. On one hand, you have high-level diplomatic "Frameworks" with Switzerland and South Korea that lower rates to 15%. On the other, you have immediate, sweeping threats that can wipe out a supply chain overnight.
What This Means for Your Business (The Actionable Part)
If you’re running a company or even just managing a portfolio, you can’t just wait for the news. You have to be proactive.
- Audit your "Annex II" eligibility. Check if your products fall under the recent modifications to the Reciprocal Tariffs Executive Order. Bullion, critical minerals, and some chemical resins were recently moved or added.
- Document your "faultless" impact. In a presser last year, Trump mentioned he'd consider exempting companies hit "through no fault of their own." If you can prove your supply chain literally cannot exist without a specific import, you have a narrative for an exclusion request.
- Watch the "Melted and Poured" rules. For steel and aluminum, the administration is getting strict. You don't get the exemption just by shipping from a friendly country; the raw material has to be cast there to avoid "tariff circumvention."
- Evaluate TrumpRx participation. If you're in the life sciences space, the drug pricing deals seem to be the fastest track to a tariff-free existence.
The era of "one size fits all" trade policy is dead. We are in the era of the Individualized Tariff Agreement. It’s messy, it’s loud, and it’s happening right now.
If you want to stay ahead of the next round of exemptions, keep a close eye on the PTAAP (Potential Tariff Adjustments for Aligned Partners) list. That’s where the next winners will be crowned.
To keep your supply chain moving, you should start by mapping every HTS code in your inventory against the new January 2026 Harmonized Tariff Schedule. Once you identify which items are currently hitting your bottom line, draft a formal investment proposal that highlights U.S.-based job creation or R&D—this is the primary "currency" the administration is accepting in exchange for exemptions.