President Trump’s new executive order aims to streamline tariff applications by preventing overlapping duties, bringing clarity to the complex trade landscape that has emerged under his recent sweeping tariff policies.
At a Glance
- A presidential directive prevents multiple tariffs from being applied to the same imported goods
- The order applies retroactively to entries made on or after March 4, 2025
- Products qualifying under USMCA from Canada and Mexico are exempt from the new tariffs
- Non-USMCA Canadian and Mexican imports face 25% duties, with energy resources at 10%
- All Chinese imports now face an additional 20% duty with no exclusion processes available
Streamlining Tariff Applications
The White House has issued a significant executive order addressing the application of tariffs on imported goods. The directive specifically targets the issue of cumulative tariffs, which has created confusion and compliance challenges for importers.
Under the order, tariffs imposed through various proclamations and executive orders related to automobiles, parts, aluminum, and steel will no longer stack on top of each other, forcing importers to pay multiple duties on the same products. Instead, a clearer procedure will determine which tariffs apply when an article falls under multiple tariff categories.
The Secretary of Homeland Security has been instructed to update guidance and enforcement mechanisms to align with this new approach. All necessary changes to the Harmonized Tariff Schedule of the United States must be implemented by May 16, 2025. Importantly, the order applies retroactively to entries made on or after March 4, 2025, potentially providing relief for recent imports caught in the crossfire of multiple tariff regimes.
— The American Conservative (@amconmag) April 9, 2025
Recent Tariff Changes Affecting North American Trade
The Trump administration’s recent tariff actions have significantly impacted trade with America’s closest neighbors. Products imported from Canada and Mexico that do not qualify for United States-Mexico-Canada Agreement (USMCA) preferential treatment now face steep 25% duties. Energy resources and potash from these nations are subject to a lower but still substantial 10% duty. These measures have already prompted retaliatory actions, with Canada announcing 25% tariffs on certain U.S. goods and Mexico preparing its own “Plan B” strategy.
The exemption for USMCA-qualifying goods from Mexico has a definite timeline. According to official White House communications, President Trump has indicated this exemption is set until April 2nd, creating urgency for businesses to assess their supply chains. Additionally, the administration has paused duty-free de minimis treatment for low-value shipments indefinitely, closing what some viewed as a loophole in the tariff regime.
China Tariffs and Global Supply Chain Impacts
While North American trade faces new challenges, the situation with China is even more stringent. All products imported from China now face an additional 20% duty on top of existing tariffs. Unlike previous tariff regimes, no exclusion or drawback processes are currently available for domestic importers, eliminating potential relief mechanisms that businesses had previously utilized. The geopolitical landscape has become increasingly volatile, with North America now considered a high-risk area for trade relationships.
Supply chains are rapidly adapting to these seismic shifts in the trade landscape. Companies are diversifying suppliers, exploring domestic sourcing options, and implementing comprehensive contingency planning.
The administration has warned that any retaliation from trading partners could trigger even higher duty rates or an expanded scope of tariffs at the President’s discretion, creating additional uncertainty for global businesses. Despite these challenges, the new executive order on preventing overlapping tariffs represents an effort to bring some predictability to an increasingly complex trade environment.
