Addressing Certain Tariffs on Imported Articles, Multiple Overlapping Tariffs
- IFF, inc.
- May 1
- 3 min read
Purpose (Section 1):
The U.S. government has placed tariffs on certain imports for different national security and economic reasons. However, some products are now subject to multiple overlapping tariffs, which results in higher costs than intended. This order sets rules to prevent these tariffs from "stacking" unnecessarily on the same items.
Where It Applies (Section 2):
This order covers tariffs imposed by the following official actions:
Tariffs on Automobiles and Parts (Proclamation 10908)
Tariffs Related to the Northern Border and Drug Control (Executive Orders 14193, 14197, 14226, 14231)
Tariffs Related to the Southern Border (Executive Orders 14194, 14198, 14227, 14232)
Tariffs on Aluminum (Proclamation 9704 and updates)
Tariffs on Steel (Proclamation 9705 and updates)
Tariff Stacking Rules (Section 3):
If a product is subject to tariffs under the automobile and parts proclamation (2a), it won’t face extra tariffs from the border- or metals-related orders (2b–2e).
If a product is covered under northern or southern border tariffs (2b or 2c), it won't get hit again by aluminum or steel tariffs (2d or 2e).
Aluminum and steel tariffs (2d and 2e) can both apply to the same product, but only if the product qualifies under both sets of rules.
Here's a clear example scenario to illustrate how aluminum and steel tariffs can both apply:
Scenario: Overlapping Tariffs on Aluminum-Coated Steel Sheets
Product: Aluminum-coated steel sheetsCountry of Origin: Country XDate of Import: March 20, 2025
Relevant Tariff Actions:
Section 2(d): Tariffs on aluminum imports (Proclamation 9704 & amendments)
Section 2(e): Tariffs on steel imports (Proclamation 9705 & amendments)
Application of the Rule:
Aluminum-coated steel sheets contain both aluminum and steel as primary components. This means they potentially fall under the scope of both the aluminum and steel tariffs.
Step-by-Step:
The product qualifies for aluminum tariffs under section 2(d), because it contains aluminum.
It also qualifies for steel tariffs under section 2(e), because the base material is steel.
Because it satisfies the conditions for both tariffs, both aluminum and steel tariffs can apply to the same item, even cumulatively.
Therefore, the importer must pay tariffs under both Proclamation 9704 and 9705.
Key Takeaway:
This is one of the few exceptions where tariff "stacking" is allowed—but only when the product genuinely meets all the criteria for both the aluminum and steel tariffs.
Other Tariffs Still Apply (Section 4):
This order does not stop other kinds of tariffs or duties from applying, like those under regular trade law, section 301 tariffs, IEEPA fentanyl tariffs, or anti-dumping/countervailing duties.
So even if stacking is avoided here, other legal tariffs may still apply.
(b) Accordingly, an article that is subject to duties pursuant to an action listed in section 2 of this order may still be subject to other applicable duties, taxes, fees, exactions, and charges, such as, but not limited to, those set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTSUS); duties imposed pursuant to section 301 of the Trade Act of 1974, as amended; duties imposed pursuant to Executive Order 14195 of February 1, 2025 (Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China), as amended; and antidumping and countervailing duties.
Implementation (Section 5):
Customs and Border Protection (CBP), in consultation with Treasury and Commerce, will update its systems and rules to follow this order.
The Harmonized Tariff Schedule (HTSUS) will be updated by May 16, 2025, if necessary.
These changes will be retroactive to all imports made on or after March 4, 2025, and refunds will be issued accordingly.
Final Notes (Section 6):
This order doesn't limit the power of federal agencies or change how budget proposals are handled.
It must follow existing laws and available funding.
It doesn’t create any legal rights that individuals can enforce in court.
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