According to sources familiar with the initiative, USTR is compiling a list of "unavailable natural resources"-raw agricultural items the U.S. does not produce domestically. This list is intended to support focused trade talks and potentially offer tariff relief for importers of such goods-think cocoa, coffee beans, palm oil, seafood, tropical fruits, and specific seed oils.

One insider explained, "We don't have cocoa here ... coffee beans, we don't have here ... anything that's unavailable here." Although no complete list has been disclosed, some importers have been assured that palm oil will be included. Despite this, no formal documentation has been shared with stakeholders, and the full scope remains unclear.

This framework mirrors past practices: when reciprocal tariffs were rolled out in early April, the administration included an annex of excluded goods-including electronics like smartphones and laptops-but did not set up a structured exemption system like in Trump's first term. During April interviews, trade advisor Peter Navarro reiterated a stance of "no exemptions, no exclusions."

However, by substituting the language of "exemptions" with "unavailable resources," the policy shift may be more politically feasible. Officials reportedly are formulating language that avoids direct references to exclusion.

These raw-material carve-outs are to be negotiated bilaterally, integrated into country-specific trade discussions involving partners like the UK, Vietnam, Indonesia, Philippines, and Japan. According to sources, "exclusion for a product would have to be negotiated bilaterally, because otherwise it's just not going to happen."

For ag importers, potential benefits include reduced tariffs on inputs critical for food production, while machinery or equipment relying on complex manufacturing inputs would remain outside the scope. Yet many insiders hold out hope that this initial carve-out model could eventually expand to include industrially processed goods, though those face complex rules-of-origin challenges.

If realized, this initiative would signal a notable recalibration of trade policy toward precision agriculture economics, supply chain resilience, and balancing domestic farm inputs with globally grown commodities. It would also reflect a nuanced application of the Farm Bill policy toolkit, commodity pricing strategy, and co-operative trade diplomacy.

Why This Matters

• Enables importers of tropical farm products-like coffee and cocoa-to operate under lower tariff pressure.

• Signals a targeted, strategic use of trade exemptions without undermining broader reciprocal tariff policy.

• May serve as a pilot model for future carve-outs in other sectors if structured bilaterally and transparently.

• Connects trade negotiations with classic agricultural supply chain needs, bolstering flexibility without wholesale exemption frameworks.