New Rules to Eliminate "Tariff Stacking" on Imports - What's Changed Since May 16th

What’s Changed?

Finally some good news for U.S. importers of autos, steel, aluminum, and related goods! A new directive from the U.S. government ends the practice of “tariff stacking” — where multiple layers of tariffs were imposed on the same imported goods under different legal authorities, such as Section 232 and IEEPA.

What Exactly Is Tariff Stacking?

Tariff stacking occurs when a single imported product is hit with more than one type of tariff — often under different statutes or executive orders. For example, a shipment of steel auto parts might have faced a 25% tariff under Section 232 (national security) and another 25% under IEEPA (related to sanctions or national emergencies). These tariffs were stacked on top of each other, increasing costs beyond what most importers expect and creating pricing uncertainty.

Executive Order 14289 eliminates this compounding effect by ensuring only the highest applicable tariff is charged, rather than the sum of all overlapping tariffs.

When Does This Apply?

• Effective Date (Retroactive Relief): The rule is retroactive to March 4, 2025. This means any entries made on or after this date that were hit with multiple tariffs (e.g., 232 and IEEPA) may now be eligible for refunds.
• Guidance Issued: Formal instructions for how to apply for refunds were published on May 16, 2025, but eligibility is not limited to entries on or after that date.

Which Products Are Affected?

The new rules focus on imports that were previously subject to multiple tariffs, particularly:

• Automobiles and Auto Parts
• Aluminum Products
• Steel Products

Under the updated system:

• Tariffs specific to autos and auto parts now take precedence over others.
• In cases of overlap, only the highest applicable tariff will be assessed.
• The prior practice of compounding different sanctions — such as those tied to national security (Section 232) and drug enforcement (IEEPA/Fentanyl Executive Order) — will be eliminated.

What About Canada and Mexico?

Goods imported from Canada or Mexico that qualify for USMCA preferential treatment are exempt from additional IEEPA-based tariffs, including the 25% rate aimed at combating the trafficking of illicit drugs.

This is particularly relevant for northern border entries, which previously faced confusion over overlapping sanctions.

Why This Matters to You

• Lower Costs: You may see reduced tariff obligations on qualifying entries, especially for automotive-related goods.
• Refund Opportunities: If you imported covered goods between March 4 and May 16, 2025, and paid overlapping tariffs, you may be entitled to a refund.
• More Predictable Trade Environment: With tariff prioritization clarified, you’ll have more certainty when estimating landed costs.

How BorderBuddy Can Help

At BorderBuddy, we specialize in understanding complex tariff structures and customs changes. If you’re unsure whether your past entries are eligible for a refund — or want help filing claims — our team is ready to guide you.

👉 Don’t leave money on the table. Contact us today via email or call +1-877-409-8163 to assess your potential refund opportunities and make sure you’re not overpaying on future imports.