Unexpected Tariff Relief: White House Announces the “non-stacking” of Certain Tariffs

Certain additional tariffs implemented by the Trump administration will cease to apply cumulatively, according to an executive order (EO) issued by the White House on April 29, 2025.

The EO, titled “ADDRESSING CERTAIN TARIFFS ON IMPORTED ARTICLES,” announces the “non-stacking” of several major tariff measures currently affecting US imports, meaning if an imported commodity is subject to a particular tariff because of the class of commodity it falls under or its country of manufacture, it will be subject to just that tariff and not the additional tariffs that would otherwise apply. Specifically, the following “non-stacking” measures are prescribed:

• Passenger vehicles, light trucks, and certain automobile parts subject to the 25% tariff applied against these articles under Section 232 of the Trade Expansion Act of 1962 will NOT also be subject to the IEEPA tariffs (imposed to address the flow of illicit drugs) against articles from Mexico or Canda and will NOT also be subject to the Section 232 tariffs against articles of Aluminum and Steel (and derivatives) if they are also made partially or wholly of aluminum or steel.
• Articles from Mexico or Canada subject to those aforementioned IEEPA “Fentanyl” tariffs imposed to address the flow of illicit drugs will NOT also subject to the Section 232 tariffs against articles of Aluminum and Steel (and derivatives) if they are also made of partially or wholly of aluminum or steel.

These changes will go into effect no later than May 16, 2025, and will apply retroactively back to March 4, 2025. This presents US importers with the opportunity to submit to customs for a refund for applicable imports subject to stacked tariffs since that date.

These changes will alleviate – retroactively – some of the cost of importing industrial and automotive goods, and other goods from Canda and Mexico, but they will not affect the existing “Reciprocal” tariffs against imports from other countries (at 10%) or against China (at 125%).

Using executive powers, the President can prescribe or revoke trade sanctions in a matter of hours. Allyn International’s service suite includes consultation on current and developing issues in the US trade community. Reach Allyn here for a consultation or, contact us sales@allynintl.com or 239-489-9900.

Contributor: Andrew Dosher

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