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New Executive Order Limits Tariff Stacking on Imports to Prevent Excessive Duties

April 30, 2025

Updated 5/30/2025: The Trump administration's appeal to uphold tariffs through IEEA was granted. Liberation Day tariffs are still currently in effect. Read the court's judgemet here: https://www.cafc.uscourts.gov/opinions-orders/25-1812.ORDER.5-29-2025_2522636.pdf

Updated 5/29/2025: US District judge Rudolph Conteras ruled yesterday Trump's use of the IEEA act to establish tariffs was illegal and an overreach of presidential power. Read the full judgement here: https://storage.courtlistener.com/recap/gov.uscourts.dcd.279804/gov.uscourts.dcd.279804.35.0.pdf

On April 29th, 2025, the Trump administration released a new executive order regarding US trade and tariff policy. This Executive Order, issued under various legal authorities including IEEPA, the Trade Act of 1974, and the Trade Expansion Act of 1962, establishes that overlapping U.S. tariffs on the same imported article—when imposed under specific trade and national security authorities—should not be cumulative (“stacked”), unless explicitly permitted. The goal is to avoid excessive duty rates that exceed what is necessary to meet policy objectives.

Key Provisions:

1. Non-Cumulative Tariff Application (Section 3):

If an imported article is subject to multiple tariffs under specified authorities, only one set will apply, based on a hierarchy:

  • Automobile Tariffs (Sec. 2a) override all others (2b–2e).

  • Northern and Southern Border Drug-Related Tariffs (Secs. 2b & 2c) override aluminum and steel tariffs (2d & 2e).

  • Aluminum (2d) and Steel (2e) tariffs may both apply to the same article if conditions for each are met.

This order only prevents stacking among the specific actions listed in Section 2. It does not affect duties imposed under other laws (e.g., HTSUS general duties, Section 301 tariffs, anti-dumping or countervailing duties).

2. Covered Tariff Actions (Section 2):

Tariffs affected by this order include:

  • Proclamations and executive orders on automobiles, northern/southern border drug interdiction, and aluminum and steel imports (dating from 2018 to 2025).

3. Implementation (Section 5):

CBP (Customs and Border Protection), in coordination with the Treasury, Commerce, and USTR, must update enforcement systems and guidance to reflect this order.

Necessary Harmonized Tariff Schedule (HTSUS) changes must be made by May 16, 2025, with the order applied retroactively to imports from March 4, 2025.

Refunds for overpaid duties will follow standard CBP procedures.

4. Clarifications (Section 4):

This order does not affect:

Other existing duties, taxes, or charges (e.g., Section 301 tariffs, synthetic opioid-related tariffs, HTSUS Column 1 rates).

Enforcement of any tariff outside the specified list.

5. General (Section 6):

The order does not grant any enforceable legal rights.

It is subject to legal limitations and funding availability.


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