Clarification to Assessing Certain Tariffs

Preventing Tariff Overlap: A Closer Look at the White House Order on Addressing Certain Tariffs on Imported Articles

In a rapidly changing global trade environment, tariffs are implemented as a key tool of economic strategy and national security. However, when multiple tariffs unintentionally overlap, the outcome can be more harmful than helpful—raising costs disproportionately for businesses and consumers alike. In response, the Trump administration has introduced a new executive order aimed at streamlining the application of specific U.S. tariffs to prevent what’s known as “tariff stacking.” This order, titled Addressing Certain Tariffs on Imported Articles, provides relief from unintended cumulative tariff burdens without weakening the United States’ broader trade and security objectives.

Let’s break down this executive action, understand where it applies, and examine how it will affect trade compliance, customs enforcement, and pricing structures for imported goods.

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Purpose: Correcting the Cumulative Effect of Overlapping Tariffs

At its core, this executive order aims to prevent redundant or unintended layers of tariffs from being applied to the same product. In the past, products like vehicle parts or metal-based imports could be subject to multiple tariffs from different executive actions or proclamations—even if the policy intent was to only impose a specific kind of duty.

The administration recognizes that overlapping tariffs can distort market pricing, discourage trade partnerships, and unfairly penalize certain industries. This order sets out to solve that by clarifying when tariffs should and shouldn’t apply simultaneously to a single product.

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Scope of Application: Where the New Rules Apply

This order specifically applies to tariffs originating from five major executive and presidential actions:

1. Automobiles and Parts Tariffs under Proclamation 10908
2. Northern Border and Drug Control Tariffs, from Executive Orders 14193, 14197, 14226, and 14231
3. Southern Border Tariffs, from Executive Orders 14194, 14198, 14227, and 14232
4. Aluminum Tariffs, under Proclamation 9704 and updates
5. Steel Tariffs, under Proclamation 9705 and updates

Each of these tariff actions was issued for different strategic reasons—national security, border control, industrial capacity, or drug interdiction. But when their enforcement unintentionally overlaps, it leads to financial burdens that go beyond the intended policy outcome. This order untangles that complexity.

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New Rules: When Tariffs Can—and Can’t—Be Combined

The order’s most critical component lies in Section 3, where the rules on tariff stacking are spelled out clearly:

• If a product is already subject to automobile tariffs (2a), it cannot be charged additional tariffs under the border or metal-related actions (2b–2e).
• If a product is already covered by northern or southern border tariffs (2b or 2c), it cannot also face aluminum or steel tariffs (2d or 2e).
• However, aluminum and steel tariffs can be combined, but only if the product qualifies under both sets of rules independently.

This distinction is key. In most cases, the government is avoiding duplication—but where a product is clearly made of both aluminum and steel, like aluminum-coated steel sheets, tariffs may apply to both materials if warranted.

Example Scenario: Aluminum-Coated Steel Sheets

Let’s walk through a concrete example to illustrate when “stacking” is allowed.

• Product: Aluminum-coated steel sheets
• Country of Origin: Country X
• Date of Import: March 20, 2025

Analysis:

• This product contains both aluminum and steel, making it fall within the scope of both Proclamation 9704 and Proclamation 9705.
• According to the new order, both aluminum and steel tariffs apply—but this is the exception, not the rule.
• Importers in this case must pay both duties, but only because the item independently qualifies under both policies.

Key takeaway: Dual tariffs are only allowed if the item genuinely meets the conditions of both underlying proclamations.

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Other Tariffs Still in Play

While this executive order offers significant relief from unintended stacking, it’s important to note what it does not do.

Section 4 clarifies that the order does not override other forms of trade protection, including:

• Duties under Section 301 of the Trade Act of 1974 (often used in U.S.-China trade disputes)
• Tariffs issued under the International Emergency Economic Powers Act (IEEPA), such as fentanyl supply chain tariffs
• Antidumping and countervailing duties used to offset unfair foreign subsidies or pricing

In essence, this order doesn’t exempt goods from being subject to other lawful tariffs; it simply prevents stacking within the narrow list of proclamations mentioned in Section 2.

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Implementation Timeline and Refunds

To put this policy into practice, U.S. Customs and Border Protection (CBP) will take the lead, working with the Departments of Treasury and Commerce. Key steps include:

• Updating the Harmonized Tariff Schedule (HTSUS) by May 16, 2025, if needed.
• Applying changes retroactively to all imports made on or after March 4, 2025.
• Issuing refunds for importers who paid overlapping tariffs that are now disallowed.

This retroactive element is especially important for importers who may have already paid excessive tariffs without clear guidance. The update to CBP’s systems ensures a streamlined and automated refund process.

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Legal Boundaries and Limitations

The executive order wraps up with important legal clarifications:

• It does not interfere with the budget process or federal agency authority.
• It must comply with current funding laws and statutory limits.
• It does not grant private individuals or companies the right to sue based on this policy.

This maintains the executive branch’s flexibility while preventing litigation from arising around its implementation.

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Reference Link

Addressing Certain Tariffs on Imported Articles – The White House