President Trump signed an executive order yesterday to prevent overlapping or “stacked” tariffs on imported automobiles that are currently subject to multiple trade actions. The goal is to ensure tariffs remain targeted and proportional, avoiding excessive cumulative duties that could harm businesses or consumers unnecessarily. Automobiles and auto parts subject to the 25% Section 232 autos tariffs will no longer be also subject to other 25% tariffs imposed on steel and aluminum or on Canadian and Mexican goods. U.S. Customs must implement the changes by May 16, 2025 and the order is retroactive to March 4, 2025, allowing for potential tariff refunds.

Additional details from the executive order released yesterday, 4/29/25, highlight the total additional tariffs stacked on certain products result in additional duties that exceed “what is necessary to achieve the intended policy goals.”

Automobiles and Automobile Parts:
Automobile and automobile parts subject to 25% duty imposed by the March 26th Proclamation (90 FR 14705) will not be subject to the additional tariffs imposed on:

• Goods from Canada or Mexico.
• Section 232 duties imposed on steel and aluminum imports.

If other tariffs besides Section 232 on aluminum and steel and the tariffs imposed on imports from Canada and Mexico are applicable to automobile and automobile parts already subject to the tariffs of the March 26th proclamation, the other tariffs will stack with the tariffs imposed on the automobile or automobile part import.

Imports from Canada and Mexico:
Goods subject to the additional duties on imports from Canada and Mexico imposed by executive orders issued on February 3rd (Canada & Mexico), March 2nd (Canada & Mexico), and March 6th (Canada and Mexico) will not be subject to the Section 232 tariffs imposed on steel and aluminum imports.

Aluminum Imports:
Goods subject to Section 232 duties on steel imports will be subject to additional duties imposed on aluminum imports “provided the article otherwise satisfies all conditions necessary for application of those additional tariffs.”

Steel Imports:
Goods subject to Section 232 duties on steel imports will be subject to additional duties imposed on steel imports “provided the article otherwise satisfies all conditions necessary for application of those additional tariffs.”