Trump Issues Order to Prevent Overlapping Tariffs on Imports

On Monday, President Donald Trump signed a new executive order aimed at preventing the cumulative effect of overlapping U.S. tariffs on imported goods, particularly when multiple trade actions target the same item.

The move is intended to ensure that tariffs imposed under various authorities — meant to address "threats ranging from national security to illicit drug trafficking" — do not "stack" in a way that overburdens U.S. importers or exceeds the intended economic or policy impact.

The order outlines a hierarchy to determine which tariffs should apply when an article is subject to multiple actions. It specifically covers tariffs imposed through:

• The March 2025 proclamation on autos and auto parts

• A series of executive orders targeting drug flows across the northern and southern U.S. borders

• Longstanding tariffs on aluminum and steel imports

Under the new rules:

• Tariffs under the auto and auto parts proclamation will take precedence over tariffs imposed under the other listed actions.

• Tariffs related to border security and drug trafficking will not be cumulative with those on aluminum or steel.

• However, tariffs on steel and aluminum may still stack with each other, provided all conditions for each tariff are met.

The order emphasizes that this restructuring does not invalidate any of the individual tariff actions; each remains legally enforceable. However, when applicable, the duty rates will no longer combine unless specifically authorized.

This clarification is expected to "reduce confusion for importers and manufacturers while preserving the strategic goals of the tariff programs".