View the Original .pdfThe 1-Minute Brief
What: Executive Order 14289, issued on April 29, 2025, prevents the "stacking" of multiple tariffs on the same imported product. It establishes a hierarchy to determine which tariff applies when an item is subject to more than one of the specified trade actions.
Money: The order does not have a direct CBO score as it modifies the application of existing tariffs rather than imposing new ones. The financial impact will be a reduction in the total tariff cost for certain imported goods, potentially leading to lower prices for businesses and consumers. Refunds for overpaid tariffs are authorized retroactively to March 4, 2025.
Your Impact: For the average American, this could mean lower prices on certain imported goods, particularly automobiles and products made with steel and aluminum, by preventing multiple layers of tariffs from being applied to the same item.
Status: This Executive Order was signed and is scheduled to be published in the Federal Register on May 2, 2025. The changes are to be implemented by May 16, 2025.
What's Actually in the Bill
Executive Order 14289 is designed to clarify which tariff should be applied when an imported product is covered by multiple, overlapping tariff actions. The order determines that the cumulative effect of these tariffs, or "stacking," results in duties that are higher than necessary to achieve the intended policy goals.
Core Provisions:
- Prevents Tariff Stacking: The primary function is to establish a rule that only one specified tariff can be applied to a single product at a time.
- Creates a Tariff Hierarchy:
- Tariffs on automobiles and their parts take precedence over all other listed tariffs.
- Tariffs related to border security (both northern and southern) take precedence over steel and aluminum tariffs.
- Tariffs on steel and aluminum can be applied together on the same product if applicable.
- Retroactive Application: The changes apply retroactively to all merchandise entered on or after March 4, 2025.
- Implementation Deadline: All necessary changes to the Harmonized Tariff Schedule of the United States (HTSUS) must be made by 12:01 a.m. eastern daylight time on May 16, 2025.
Stated Purpose (from the Sponsors):
The stated purpose of this executive order is to protect national security and address extraordinary threats to the U.S. economy and foreign policy by ensuring that the application of multiple tariffs on the same item does not have a cumulative effect that exceeds the intended policy goals.
Key Facts:
Affected Sectors: Automotive, Steel, Aluminum, and various sectors impacted by border-related tariffs.
Timeline: The order was signed on April 29, 2025, is effective for goods entered on or after March 4, 2025, and will be fully implemented by May 16, 2025.
Scope: The order applies to tariffs on goods imported into the United States that are subject to the specific executive orders and proclamations listed in the document.
The Backstory: How We Got Here
Timeline of Events:
The Era of Section 232 and IEEPA (2018-Present):
The legal foundations for the tariffs addressed in this executive order are primarily Section 232 of the Trade Expansion Act of 1962 and the International Emergency Economic Powers Act (IEEPA) of 1977.
- Section 232 of the Trade Expansion Act of 1962 grants the President the authority to impose tariffs on imports that are determined to threaten national security. Historically used sparingly, the Trump administration utilized this provision to impose tariffs on steel and aluminum in 2018.
- The International Emergency Economic Powers Act (IEEPA) of 1977 allows the President to regulate international commerce after declaring a national emergency in response to an "unusual and extraordinary threat" to the U.S. that originates abroad. This act has been used to impose a wide range of sanctions and tariffs.
Why Now? The Political Calculus:
- Mitigating Economic Impact: The imposition of multiple, overlapping tariffs has likely led to concerns about the negative economic consequences for U.S. businesses and consumers, prompting a need to clarify their application.
- Addressing Industry Concerns: Various industries, particularly the automotive sector, have expressed concerns about the disruptive and costly effects of stacked tariffs on their supply chains.
- Political Pressure: The use of tariffs has been a contentious issue, with both support and opposition from various political and industry groups. This order could be a move to address some of the criticisms while maintaining the underlying tariff structure.
Your Real-World Impact
The Direct Answer: This directly affects specific industries that import goods subject to multiple tariffs, and it may indirectly affect consumers through the prices of those goods.
What Could Change for You:
Potential Benefits:
- Lower Prices: By preventing the stacking of tariffs, the final cost of some imported goods, like cars and products made of steel and aluminum, could decrease.
- More Stable Supply Chains: For businesses that rely on imported goods, this order could lead to more predictable and lower costs, potentially stabilizing supply chains.
Possible Disruptions or Costs:
Short-term (Next few months):
- Administrative Adjustments: Companies will need to adjust to the new tariff application rules, which could cause some initial confusion or administrative burden.
Long-term:
- Continued Tariff Impact: While the "stacking" is being addressed, the base tariffs remain in place, which can still contribute to higher prices compared to a no-tariff environment.
Who's Most Affected:
Primary Groups: Importers of automobiles, auto parts, steel, and aluminum.
Secondary Groups: U.S. manufacturers that use these imported materials, and ultimately, consumers who purchase these goods.
Regional Impact: Regions with a high concentration of manufacturing, particularly in the automotive and steel industries, will be most affected.
Bottom Line: This executive order aims to reduce the burden of multiple tariffs on the same products, which could lead to lower costs for certain goods, but the underlying tariffs will continue to impact the economy.
Where the Parties Stand
Republican Position: "A Mixed Bag"
Core Stance: The Republican party has shown a significant shift on trade in recent years, with a growing faction supporting the use of tariffs to protect American industries, while a more traditional wing remains committed to free trade principles.
Their Arguments:
- ✓ Supporters of tariffs argue they are necessary to protect American jobs and national security, particularly in the steel and aluminum industries. They see tariffs as a tool to level the playing field against unfair trade practices.
- ⚠️ Some Republicans have expressed concern over the economic impact of tariffs, viewing them as a tax on American consumers and businesses. There is also concern about the potential for retaliatory tariffs from other countries.
- ✗ Free-trade Republicans oppose the broad use of tariffs, arguing that they disrupt global supply chains and harm the economy.
Legislative Strategy: The party is somewhat divided. One faction is likely to support the President's use of tariff authority, while another may seek to introduce legislation to limit that authority or require congressional approval for tariffs.
Democratic Position: "Targeted, Not Broad"
Core Stance: Democrats are generally critical of broad, sweeping tariffs, but many support targeted tariffs as a tool to address specific unfair trade practices or national security threats.
Their Arguments:
- ✓ Democrats have often supported trade policies that protect American workers and have been critical of trade agreements that they argue have led to job losses.
- ⚠️ Many Democrats are concerned that broad tariffs can harm American consumers and businesses and would prefer a more strategic and targeted approach.
- ✗ The party is largely united against the use of tariffs that are not tied to specific and well-defined policy goals.
Legislative Strategy: Democrats are likely to support measures that provide more oversight of presidential tariff authority and that focus on targeted enforcement of trade rules.
Constitutional Check
The Verdict: ✓ Constitutional
Basis of Authority:
The President's authority to issue this executive order is based on several statutes, primarily the International Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act of 1962.
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.): Authorizes the President to regulate international commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States which has its source in whole or substantial part outside the United States.
Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862): Authorizes the President to adjust the imports of goods or materials from other countries if the quantity or circumstances surrounding those imports are deemed to threaten national security.
Constitutional Implications:
Delegation of Authority: Congress has delegated significant authority to the President in the areas of international trade and national emergencies through statutes like IEEPA and Section 232.
Precedent: The Supreme Court has generally upheld the President's authority to act under these statutes when a national emergency has been declared.
Federalism: This executive order deals with international trade, which is a power granted to the federal government, so it does not overstep into powers reserved for the states.
Potential Legal Challenges:
While the President's authority to act in this area is generally established, legal challenges could arise from businesses or interest groups who argue that the specific application of these tariffs exceeds the authority granted by Congress or that the declaration of a national emergency is not justified.
Your Action Options
TO SUPPORT THIS BILL
5-Minute Actions:
- Call The White House: You can contact the White House comment line at (202) 456-1111 to express your support for Executive Order 14289.
30-Minute Deep Dive:
- Write a Detailed Email: Contact the United States Trade Representative's office to provide a more detailed statement of your support.
- Join an Organization: Organizations that support the domestic steel and aluminum industries, such as the American Iron and Steel Institute and the Steel Manufacturers Association, have been supportive of the underlying tariffs and may have a position on this clarifying order.
TO OPPOSE THIS BILL
5-Minute Actions:
- Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I am concerned about the administration's use of tariffs. I urge [Rep./Sen. Name] to exercise more oversight over the President's tariff authority."
30-Minute Deep Dive:
- Write a Letter to the Editor: Explain your concerns about the impact of tariffs on consumers and businesses in a letter to your local newspaper.
- Join an Organization: Numerous industry groups, particularly in the automotive sector, have expressed opposition to the broad application of these tariffs. These include the Alliance for Automotive Innovation, the American International Automobile Dealers Association, and Autos Drive America.