Trump Administration Attempts to Clarify Effects of Overlapping Tariffs

Government Relations, Section 232, Trade and Tariffs

The Trump Administration has issued an Executive Order which attempts to clarify the effect of several overlapping tariff regimes on imported products.

The affected tariff regimes are: (a) the Section 232 tariffs on automobiles and automobile parts; (b) the special or fentanyl tariff on Canada; (c) the special or fentanyl tariff on Mexico: (d) the Section 232 tariff on steel products and derivative steel products; and (e) the Section 232 tariff on aluminum products and derivative aluminum products. Please see the list at the end of this message.

The Executive Order provides:

  • Products which are subject to the Section 232 tariffs on automobiles and automobile parts will NOT be subject to (1) the special or fentanyl tariffs on Canada and Mexico and (2) the Section 232 tariffs on steel and aluminum products and their derivatives.
  • Products which are subject to the special or fentanyl tariffs on Canada and Mexico will NOT be subject to the Section 232 tariffs on steel and aluminum products and their derivatives.
  • However, products which are subject to the Section 232 tariffs on steel will also be subject to the Section 232 tariffs on aluminum – and vice versa.
  • NOTE: Imports under the five tariff regimes listed above may be subject to other duties and tariffs, such as regular HTSUS duties, Section 301 tariffs on China, special or fentanyl tariffs on China, and antidumping and countervailing duties.  These other duties and tariffs are added cumulatively – stacked – with the applicable Section 232 and special or fentanyl tariffs.
  • NOTE ALSO: The Executive Order on reciprocal tariffs already exempts a number of products and product categories from its coverage, including products subject to Section 232 tariffs, enumerated products in Annex II to the Executive Order on reciprocal tariffs, etc.

Finally, the Executive Order on non-stacking of various tariff regimes applies retroactively to imports which were entered on or after March 4, 2025.  Importers may seek refunds for any overpaid duties through standard Customs procedures, such as filing a protest or submitting a post summary correction.

You can read the Executive Order here.