May 8th, 2025 – In an executive order issued under multiple trade and national security statutes, President Trump has directed U.S. agencies to prevent the cumulative application of certain overlapping tariffs on imported goods. This measure aims to eliminate unintended economic burdens that arise when multiple tariffs apply simultaneously to the same product.
Purpose of the Order
Over the years, the United States has imposed a variety of tariffs using different legal authorities to address distinct threats, such as national security concerns, drug trafficking at the borders, and unfair trade practices involving steel and aluminum. While these tariffs serve different purposes, some products fall under more than one category, leading to unnecessarily high combined duty rates.
To address this, the executive order prohibits the stacking of tariffs from specific measures when applied to the same article. This ensures the duties remain targeted and proportional to their policy goals.
Which Tariffs Are Affected
The order applies to tariffs imposed through the following:
- Automotive Tariffs under Proclamation 10908 (2025)
- Northern and Southern Border Tariffs aimed at combating drug trafficking, as set forth in multiple Executive Orders in early 2025
- Steel and Aluminum Tariffs issued under Proclamations 9704 and 9705 (2018), and subsequent amendments
Non-Stacking Rules
- Auto tariffs (Proclamation 10908) take priority — if a product is subject to these, it cannot be additionally taxed under the other listed actions.
- Northern/Southern Border tariffs also cannot be stacked with steel or aluminum duties.
- Steel and aluminum tariffs, however, can be stacked with each other if the product qualifies under both.
Other Tariffs Still Apply
This order does not affect the application of other duties such as:
- Standard import tariffs under the Harmonized Tariff Schedule (HTSUS)
- Section 301 tariffs (e.g., China-specific measures)
- Antidumping or countervailing duties
- Tariffs related to synthetic opioids from China (Executive Order 14195)
Implementation and Retroactive Application
The Department of Homeland Security, U.S. Customs and Border Protection, and other federal agencies are instructed to update their systems and issue guidance by May 16, 2025. The policy will be applied retroactively to imports made on or after March 4, 2025, with applicable refunds processed per existing procedures.
