On April 29, 2025, Executive Order 14289 eliminated the practice of stacking certain tariffs. The order indicated that further guidance, along with updates to the ACE system and tariff schedules, would follow to support this change.
On May 15, 2025, U.S. Customs and Border Protection (CBP) issued guidance in CSMS # 65054270 providing detailed instructions on how to determine which tariffs apply to an article that covers multiple actions under Section 232 Auto/Auto Parts, International Emergency Economic Powers Act (IEEPA) Canada, IEEPA Mexico, Section 232 Aluminum and Section 232 Steel. In Federal Register 2025-09066, CBP issued modifications to Chapter 99 of the Harmonized Tariff Schedule to align with these changes. These changes are effective on all entries on or after March 4, 2025.
The notice confirms auto parts that are “parts of passenger vehicles and lights trucks” and qualifying for preferential tariff treatment under the United States Mexico Canada Agreement (USMCA) are exempt from Section 232 Auto/Auto parts, IEEPA Canada, and IEEPA Mexico tariffs. However, they may still be subject to Section 232 Aluminum and Steel tariffs, if applicable.
Guidance confirms that “subject to” language means that duty of more than 0% is owed and payable to CBP on a tariff action.
The notice advises importers and brokers to request refunds if tariffs were not applied in the correct order. Refunds may be requested via a post summary correction for unliquidated entries or through a protest for liquidated entries within allowable timeframes. This applies to entries made on or after March 4, 2025.