Removing overlapping tariffs and refining the scope of auto-related duties will help protect the automotive industry and minimize costs for American businesses.
On April 29, 2025, the U.S. President signed an Executive Order eliminating the practice of applying multiple overlapping tariffs to a single imported product.
At the same time, an amendment to Proclamation 10908 was issued to revise the enforcement of tariffs on automobiles and their parts—which gives U.S. automakers more time to shift supply chains back to the United States.
These two significant trade policy actions will change how tariffs are applied to certain U.S. imports.
According to the new Executive Order, when an imported product falls under more than one qualifying trade action, applicable tariffs will not be stacked—unless explicitly noted and under certain conditions.
The order applies specifically to tariffs imposed under:
Previously, imports covered by more than one of these measures could be subject to cumulative duties.
The Executive Order is retroactive to all affected imports entered on or after March 4, 2025.
The United States Trade Representative (USTR) will coordinate implementation with the Secretaries of Homeland Security and the Treasury.
Moreover, U.S. Customs and Border Protection (CBP) has been instructed to apply the new policy that relieves overlapping tariffs without delay. It will also publish relevant updates to the Harmonized Tariff Schedule of the United States (HTSUS) by May 16, 2025.
The Executive Order also authorizes relevant agencies to issue further guidance and technical clarifications to ensure consistent application, particularly in cases involving variable tariff rates or evolving classifications.
This policy change is limited in scope. Other tariffs remain unaffected, including:
Moreover, under this Executive Order, any tariffs assessed before March 4, 2025, will not be reversed or refunded.
On April 29, the U.S. President also issued amendments to Proclamation 10908, which was initially signed on March 26, 2025.
The original proclamation had imposed a 25% tariff on imported vehicles effective April 3, 2025, and scheduled similar duties on auto parts beginning May 3, 2025.
However, the amended proclamation now gives the industry two years to realign supply chains and reduce reliance on foreign automobile components.
Moreover, the Secretary of Commerce has been directed to establish a process within 90 days for identifying additional auto parts that could be used to avoid these tariffs.
The Secretary will continue to monitor import levels and advise the President on further actions needed.
If your imports were subject to overlapping tariffs, we advise you to:
If you import automobiles or parts, you now have two years to shift supply chains or reduce your reliance on foreign sources—before additional duties are enforced.
At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.
Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.
Please reach out to one of our trade professionals to discuss these new policy changes, their impact on your business, and how we can help.