President Trump has issued a new Executive Order modifying the treatment of certain tariff measures. The purpose is to “avoid the cumulative effect of overlapping tariffs on certain articles” and provides the procedure for determining what tariffs apply. This has been called tariff “stacking” by many people.
This new action seems designed to benefit the automotive industry, and provide some measure of relief to Mexico and Canada. The Executive Order is called “Addressing Certain Tariffs on Imported Articles” and is dated April 29, 2025.
In simplified form (perhaps lacking necessary legal nuances, so consult for legal advice), the Executive Order lists out the only five tariff measures affected, as follows:
- Automobile & Automobile Part Tariffs — Adjusting Imports of Automobiles and Automobile Parts Into the United States
- Canada Tariffs — Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border
- Mexico Tariffs — Imposing Duties To Address the Situation at Our Southern Border
- Aluminum Tariffs — Adjusting Imports of Aluminum Into the United States
- Steel Tariffs — Adjusting Imports of Steel Into the United States
To determine whether tariffs should not be stacked or cumulated, the order gives the following rules:
- If tariffs under (a) apply, those goods will not be subject to (b) through (e) tariffs. No steel, aluminum, Canada, or Mexico tariffs apply on top of automobile or automobile part tariffs.
If tariffs under (b) or (c) apply, then those goods will not be subject to (d) and (e) tariffs. If either Canada or Mexico tariffs apply, then no steel or aluminum tariffs.This rule was modified by the increase in steel and aluminum tariffs to now state the reverse: if tariffs under (d) or (e) apply, then no tariffs pursuant to (b) or (c) apply.- If tariffs under (d) apply, (e) tariffs may also be applied to those goods if the ordinary conditions are met. Stacking is possible on aluminum and steel tariffs.
- If tariffs under (e) apply, (d) tariffs may also be applied to those goods if the ordinary conditions are met. Stacking is possible on aluminum and steel tariffs.
The rest of the order essentially says everything else is unchanged — 10% reciprocal tariffs on every country except China, China’s reciprocal tariff, the IEEPA/Fentanyl Tariff on China of 20%, Section 301 China tariffs of 7.5% to 25%, and so on.
Manufacturers and importers of record may apply for an offset, as detailed in the proclamation amending the original executive order on auto tariffs.
Importers may seek refunds of stacked duties previously paid via Post Summary Corrections or protests under 19 U.S.C. § 1514. The Federal Register notice is available here.
Tariff Stacking Questions?
Do you have questions about the stacking of tariffs and this latest Executive Order? Great Lakes Customs Law has been advising importers for more than 15 years. Call us at (734) 855-4999, send a text message, or reach us on WhatsApp.