Listen to this post

On April 29, 2025, President Trump issued an Executive Order clarifying the calculation methods that should be used for certain imports subject to the various tariffs implemented since February 2025. The EO sets out a procedure for determining which of the multiple tariffs should apply to an article and when multiple tariffs currently apply. Importantly, this EO only applies to those tariffs relating to imports of automobiles, automobile parts instituted pursuant to  the International Emergency Economic Powers Act (“IEEPA”) on Canada and Mexico related to the fentanyl crisis  and the Section 232 aluminum and steel tariffs For a complete discussion of the recently imposed tariffs, please see our First 100 Days of Trade Series. 

Non-Stacking of Tariff Measures

The EO provides the following methodology for determining the applicable tariff rate:

 (i)    An article subject to tariffs pursuant to the action listed in section (2)(a) of this order shall not be subject to additional tariffs on that article pursuant to the actions listed in sections 2(b) through 2(e) of this order.


(ii)   An article subject to tariffs pursuant to the actions listed in section 2(b) or 2(c) of this order shall not be subject to additional tariffs on that article pursuant to the actions listed in section 2(d) or 2(e) of this order. 


(iii)  An article subject to tariffs pursuant to the actions listed in section 2(d) of this order shall be subject to additional tariffs on that article pursuant to the actions listed in section 2(e) of this order, provided the article otherwise satisfies all conditions necessary for application of those additional tariffs; likewise, an article subject to tariffs pursuant to the actions listed in section 2(e) of this order shall be subject to additional tariffs on that article pursuant to the actions listed in section 2(d) of this order, provided the article otherwise satisfies all conditions necessary for application of those additional tariffs.

Therefore, the tariff calculation analysis should be performed as follows:

  • An article subject to the Automotive/Automotive Parts Tariffs at 25% shall not be subject to the Mexico or Canada IEEPA fentanyl tariffs or the Section 232 steel and aluminum tariffs.
  • Articles subject to Mexico or Canada IEEPA fentanyl tariffs shall not be subject to Section 232 steel and aluminum tariffs.
  • Articles subject to tariffs related to aluminum imports shall be subject to additional tariffs under actions related to steel imports, if the conditions are met for such tariffs to apply to both steel and aluminum.

The changes in calculation are retroactive and will apply “to all entries of merchandise subject to any applicable tariffs outlined in Section 2…and made on or after March 4, 2025. Any refunds will be processed pursuant to applicable laws and U.S. Customs and Border Protection’s standard procedures for such refunds.”

We advise clients to contact the HB International Trade and Supply Chain team for specific questions related to your imports.