Latest Executive Order Limits Tariff Stacking

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Apr. 29, 2025
By: Austin J. Eighan

On April 29, President Trump issued an Executive Order (EO) to restructure how certain tariffs are imposed under existing trade measures. The EO seeks to mitigate overlapping duties—often referred to as “tariff stacking”—on imported articles subject to multiple tariff actions. These tariffs, implemented under various statutory authorities and presidential actions, serve distinct policy purposes. When multiple tariffs apply to a single product as a result of separate trade measures, the President has determined that the combined duty rate often exceeded what is necessary to achieve the government’s specific trade or national security goals.

The EO provides a procedural framework to determine which tariffs apply in these cases. However, only the following five tariff actions are covered, which include those implemented under Section 232 of the Trade Expansion Act of 1962 (“Section 232”) and the International Emergency Economic Powers Act (IEEPA):

• Section 232 Automobile and Automobile Parts Tariffs (Proclamation 10908);
• IEEPA Canada Tariffs (EOs 14193, 14197, 14226, 14231);
• IEEPA Mexico Tariffs (EOs 14194, 14198, 14227, 14232);
• Section 232 Aluminum and Aluminum Derivative Tariffs (Proclamations 9704, 9980, 10895); and
• Section 232 Steel and Steel Derivative Tariffs (Proclamations 9705, 9980, 10896).

The EO establishes the following rules to determine which of the covered tariff actions remain applicable when an import faces potential such tariff stacking:

• Articles subject to Section 232 automobile and automobile parts tariffs are exempt from the additional IEEPA Canada and Mexico tariffs, as well as the Section 232 steel and aluminum tariffs.
• Articles subject to the IEEPA Canada and Mexico tariffs are exempt from the Section 232 steel and aluminum tariffs.
• However, if an article qualifies for both Section 232 aluminum and steel tariffs, those duties can be applied together and effectively “stacked.”

The scope of the EO does not extend beyond the listed tariff actions. As such, the EO does not impact the application of standard duties; duties imposed under Section 301 of the Trade Act of 1974, as amended; anti-dumping and countervailing duties; or other EOs not expressly listed, such as those targeting synthetic opioids (see our article on the topic here). Keep in mind that reciprocal tariffs already have a provision making them inapplicable where steel or aluminum 232 tariffs are applicable.

The EO applies retroactively to impacted imports made on or after March 4, 2025, and importers may seek refunds for any overpaid duties through standards Customs procedures, such as filing a protest or submitting a post summary correction. The Department of Homeland Security has until 12:01AM EDT on May 16, 2025, to implement all necessary changes required to update applicable guidance, systems, and enforcement mechanisms.

If your company is seeking guidance on how to implement the new tariff guidance or would like to file a protest requesting refunds of overpaid duties, please reach out to one of our attorneys at Barnes, Richardson & Colburn.