Trump Tariff Exemptions Aid Firms with Political Ties, Democrats Charge

The Trump administration has granted exemptions from its new tariffs to certain companies with clear political connections, Senate Democrats charged in a letter this week. Senators Ron Wyden and Chris Van Hollen wrote to the White House saying the process opens the door to favoritism and lacks public oversight. This comes as President Trump rolls out baseline 10% tariffs on imports from nearly all countries, with some products spared through decisions made out of public view.

Background

President Trump took office again in January and quickly moved on trade. He signed executive orders setting tariffs on goods from China, Europe, and other places. The goal, he said, is to protect American workers and bring jobs home by making foreign products more expensive. But not every import faces the full hit. The orders list broad exemptions for things like pharmaceuticals, semiconductors, lumber, copper, critical minerals, and energy products. A detailed list spells out specific items that get a pass.

During Trump's first term, companies could apply publicly for tariff relief. They filed thousands of requests, and people could see who got approved. Studies later showed donors to Republicans often won out. Now, in this second term, there is no public application system. Firms talk directly to officials behind closed doors. Industry groups and business leaders say they often learn about changes after the fact, with no explanation.

One example stands out: PET resin, a plastic used in bottles. It made the exemption list, even though it does not fit the broad categories like drugs or minerals. The PET Resin Association said they were surprised. Their executive director, Ralph Vasami, noted the material mainly packs other goods, not the exempted ones themselves.

Reyes Holdings, a huge private Coca-Cola bottler owned by brothers Chris and Jude Reyes, benefits from this. The company ranks among the biggest in the U.S. The brothers have donated millions to Republican causes over the years. Chris Reyes visited Trump at Mar-a-Lago after the 2016 win. Last fall, as Trump won re-election, Reyes hired Ballard Partners to lobby on tariffs. That firm has deep Trump ties. Its founder, Brian Ballard, raised big money for the president. Staff include top officials like Attorney General Pam Bondi and chief of staff Susie Wiles. In early 2026, Ballard lobbied the Commerce Department for Reyes on trade issues.

The White House has not said if lobbying swayed the decision. Reyes Holdings did not respond to questions. But the timing and connections fuel questions about how exemptions get made.

Key Details

Senate Democrats laid out their concerns in a letter to Trump. They pointed to the shift from open applications to private talks.

"The Administration has considered and granted tariff exclusions behind closed doors, through an opaque and unaccountable process," Wyden and Van Hollen wrote.

The senators asked for details on who got exemptions, why, and what rules guide the choices. They want a full list of companies involved and any meetings with officials.

The exemption list has odd entries beyond PET resin. Some items fit the categories loosely, while others that seem to match got left off. Trade experts call the process a black box. One lobbyist working on tariffs said it might stem from rushed work or undue influence. "It could be corruption, but it could just as easily be incompetence," the lobbyist said.

Data shows U.S. businesses have shouldered most tariff costs so far. Importers pay the duties upfront, and many have not passed the full amount to buyers yet. Prices for goods held steady into mid-2025 because firms used old stock. But as new shipments arrive, costs could rise for stores and families.

Courts have stepped in too. Lower federal courts struck down some tariffs based on the International Emergency Economic Powers Act. The government appealed to the Supreme Court. A ruling could mean refunds or let the levies stand, shifting more burden to consumers.

Company Ties and Lobbying

Reyes Holdings is not alone. Other firms with political donors or lobbyists linked to Trump have pushed for breaks. Coca-Cola, a Reyes customer, gave $250,000 to Trump's inauguration and its CEO handed him a custom Diet Coke. The company also lobbied Congress on tariffs this year.

Ballard Partners has a track record. It once worked for Trump's own business. Now it draws clients seeking White House access. Federal records show two of its lobbyists handled Reyes' tariff work.

The Wall Street Journal's editorial page called the setup the "Beltway Swamp’s dream" for its secrecy.

What This Means

These exemptions could save big companies millions. For a firm like Reyes, dodging tariffs on PET resin keeps bottle costs down, helping profits in a bottling business with thin margins. Smaller rivals without lobbyists or donor ties might face the full 10% hit, putting them at a disadvantage.

The lack of clear rules raises risks for the whole trade system. Businesses hate uncertainty. They plan supply chains years ahead, but sudden changes force quick shifts. Some move factories or suppliers, but that takes time and money.

Democrats want more openness, like the old public process. Without it, accusations of favoritism grow. Republicans defend the tariffs as tough bargaining to force better deals with trade partners.

Even exempted sectors face clouds. The administration is probing pharmaceuticals and others for future duties under national security rules. What looks like a break today could end tomorrow.

Trade groups push for stability. They say secret deals breed resentment abroad and at home. Countries like China have found workarounds before, setting up in Mexico to skirt rules. U.S. firms worry allies will hit back with their own tariffs.

For workers, the picture is mixed. Tariffs aim to shield jobs from cheap imports. But higher costs for parts and materials hurt manufacturers here. Economists say the bill often lands on Americans, not just foreigners.

The Senate letter puts pressure on the White House. It demands answers by next month. Trump officials have stayed quiet so far. As tariffs expand, eyes stay on who pays and who gets relief.