On April 29, 2025, the Executive Order (EO) “Addressing Certain Tariffs on Imported Articles" which establishes a series of measures to avoid the accumulation of tariff rates on the same product.

Executive Order April 29, 2025: The White House: Addressing Certain Tariffs on Imported Articles

The Executive Order clarifies that:

1. A good that is included in the 25% tariffs on the automobile and auto parts sector [1] will not be subject simultaneously to the tariffs imposed on Mexico and Canada linked to the issues of migration and fentanyl [2], nor to the tariffs imposed by the Steel and Aluminum EOs [3].
2. An item subject to tariffs under the EOs to address the situation at the border with Mexico and Canada will not be subject to additional tariffs imposed by the Steel and Aluminum OE.
3. An item subject to tariffs through the EO of Aluminum may be subject to additional tariffs in accordance with the actions mentioned in the Steel OE, as long as the article meets all the necessary conditions for the application of such additional tariffs.
4. An article subject to duties under the Steel EO may be subject to additional duties under the Aluminum EO, provided that the necessary conditions are met.

[1] Rates established by the Proclamation 10908 “Adjusting Imports of Automobiles and Automobile Parts Into the United States”

[2] Imposition of tariffs to address the flow of illicit drugs across the northern border – Canada (OE 14193 of February 1, 2025 and its amendments: OE14197 of February 3, 2025, OE 14226 of March 2, 2025 and OE 14231 of March 6, 2025). Imposition of tariffs to address the situation on the southern border with Mexico (OE 14194 of February 1, 2025 and its amendments: OE 14198 of February 3, 2025, OE 14227 of March 2, 2025, and OE 14232 of March 6, 2025).

[3] Adjustment of imports of aluminum and derived products to the United States (Proclamation 9704 of March 8, 2018, and its amendments: Proclamation 9980 of January 24, 2020, and Proclamation 10895 of February 10, 2025).

Adjustment of steel and steel products imports to the United States (Proclamation 9705 of March 8, 2018, and its amendments: Proclamation 9980 of January 24, 2020, and Proclamation 10896 of February 10, 2025).

This decision makes the application of tariffs more flexible, especially for the automotive and auto parts sector, on which a 25% tariff applies, through the Proclamation 10908 “Adjusting Imports of Automobiles and Automobile Parts Into the United States" of March 26th.

Proclamation 10908 of March 26, 2025: Adjusting Imports of Automobiles and Automobile Parts Into the United States

It is important to note that numeral 4 of this Proclamation, excluded from paying the 25% tariff to cars and car parts that qualify for preferential treatment under the USMCA, until the U.S. Secretary of Commerce, in consultation with CBP, establishes a process to apply the tariff exclusively to the value of non-U.S. content.

This flexibility for vehicles and auto parts originating from the T-MEC is in line with the tariff policy previously defined for Mexico and Canada, since in the case of tariffs related to migration and fentanyl, the United States Government had previously defined the exception for products that comply with the T-MEC rule of origin (Executive Order 14232 “Amendment to Duties To Address the Flow of Illicit Drugs Across Our Southern Border").

Other aspects to take into account:

A second one was published on April 29th Proclamation “Amendments to adjusting imports of automobiles and automobile parts into the United States" which establishes the procedure for manufacturers who assemble producers in the United States. This Proclamation allows manufacturers to obtain offsets against future tariffs based on the value of the vehicles they build in the U.S. The offset value starts at 3,75% from the manufacturer's suggested retail price, down to 2,5% after April 30, 2026, and expires completely one year after that.

Proclamation Amending Tariffs on Automobiles and Auto Parts - April 29, 2025: The White House: Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States

The OE Addressing Certain Tariffs on Imported Articles"of April 29, does not modify the application of other tariff measures, For example, reciprocal tariffs in force for China, Section 301 tariffs also applicable to China, or trade defense measures (anti-dumping duties, countervailing duties). These additional tariffs will continue to apply independently and may be cumulative.