New Executive Order Addresses Tariff “Stacking”

President Trump recently imposed a wide variety of tariffs on U.S. imports. 

In doing so, he relied on various statutory authorities, executive orders (EOs) and proclamations, each with its own stated policy purpose. As a result, more than one tariff may apply to the same article being imported into the U.S. On April 29, an EO (Addressing Certain Tariffs on Imported Articles) was issued to address how to treat duties when more than one applies in order to avoid “stacking” (i.e., cumulative) tariffs on a single article.

This process set forth in the EO applies to the following proclamations and EOs:

1. Proclamation 10908 - March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States)
2. EO 14193 – February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border), as amended by EOs 14197, 14226, 14231
3. EO 14194 – February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border), as amended by EOs 14198, 14227, 14232
4. Proclamation 9704 – March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended by Proclamations 9980 and 10895
5. Proclamation 9705 – March 8, 2018 (Adjusting Imports of Steel Into the United States) as amended by Proclamations 9980 and 10896

The process for determining how the duties apply is as follows:

1. If (1) above applies to an article, any additional tariffs in (2) through (5) do not apply.
2. If (2) or (3) apply to an article, then any additional tariffs in (4) and (5) do not apply.
3. If (4) applies to an article, it remains subject to additional tariffs under (5), provided the article otherwise satisfies all conditions necessary for application of those additional tariffs.
4. Likewise, if (5) applies to an article, it remains subject to additional tariffs under (4), provided the article otherwise satisfies all conditions necessary for application of those additional tariffs.
5. If (1) applies to an article, and there are any “other” applicable tariffs (other than those in (2) to (5)), those additional tariffs will be cumulative with (1).

With respect to the “other” tariffs in the final bullet point above, the reciprocal tariffs imposed in the April 2, 2025 EO (Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits) would not be included in the cumulative stacking because items subject to the Section 232 automobile and automobile parts tariffs in Proclamation 10908 are specifically excluded in the reciprocal tariffs EO.

The EO applies retroactively to all entries of merchandise subject to any applicable tariffs outlined in (1) to (5) above and made on or after March 4, 2025. CBP will use its standard procedures for issuing related refunds.