Trump Issues Order to Prevent Tariff Stacking on Imported Goods
On April 29, 2025, President Donald J. Trump signed an executive order to address the cumulative impact of overlapping U.S. tariffs on certain imported articles. The new policy aims to ensure that when multiple tariffs could apply to the same product-such as automobiles, auto parts, steel, aluminum, or goods targeted by border security measures-only one set of tariffs will be charged, preventing “tariff stacking” that could unnecessarily raise costs for importers and consumers.
What Is Tariff Stacking and Why Address It?
Over the past several years, the U.S. has imposed various tariffs under different authorities and executive actions to address national security, drug trafficking, and foreign trade practices. Sometimes, a single imported item could be subject to more than one of these tariffs, resulting in a cumulative or “stacked” tariff rate that exceeds what policymakers intended.
President Trump’s new order recognizes that such stacking can make imported goods excessively expensive and may go beyond what is necessary to achieve policy goals. The order sets out clear rules for determining which tariff applies when multiple tariffs could overlap.
How Will the New Policy Work?
Key Provisions:
- No Double Tariffs: If an imported article is subject to tariffs under one of the listed presidential actions (such as recent auto, steel, aluminum, or border security tariffs), it will not also be subject to additional tariffs from the other listed actions for the same article.
- Exceptions: If a product is subject to a listed tariff and also to tariffs from other sources not covered by this order (such as Section 301 tariffs on China or antidumping duties), those additional tariffs may still apply.
- Retroactive Application: The order applies retroactively to all entries of affected goods made on or after March 4, 2025. Any excess duties paid due to stacking will be refunded under standard Customs and Border Protection procedures.
- Implementation Deadline: All necessary changes to the Harmonized Tariff Schedule and customs systems must be made by May 16, 2025.
Which Tariffs Are Covered?
The order applies to tariffs imposed under:
- Recent proclamations on auto and auto part imports
- Duties related to border security and illicit drug trafficking (both northern and southern borders)
- Steel and aluminum tariffs, including derivative products
What Does This Mean for Importers?
- Simplified Tariff Application: Importers will pay only the highest applicable tariff from the listed actions, not a cumulative total.
- Potential Refunds: Importers who paid stacked tariffs on qualifying goods since March 4, 2025, can expect refunds.
- Continued Compliance: Other duties, such as Section 301 tariffs or antidumping duties, remain in effect and can still be charged in addition to the tariffs covered by this order.
Conclusion
President Trump’s executive order to prevent tariff stacking is designed to streamline tariff administration, reduce unintended cost burdens for U.S. businesses and consumers, and clarify how overlapping trade measures are applied. The order does not remove any existing tariffs but ensures that, for certain goods, only one set of tariffs will be charged under the specified authorities.
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