On April 29, the Trump Administration published an Executive Order (EO) clarifying which tariffs are subject to a cumulative effect (i.e., which tariffs “stack” on top of one another) for steel and aluminum products from Canada or Mexico.
25% IEEPA fentanyl/immigration tariffs on non-USMCA compliant imports are not subject to Section 232 tariffs on aluminum and steel. In other words, there is no stacking of Section 232 tariffs on top of IEEPA tariffs for imports that are not USMCA compliant from CA or MX. As a reminder, PMMI machinery of HS headings 8422 and 8438 are not subject to Section 232 tariffs. However, some components, materials, parts sourced from Canada or Mexico may be subject to Section 232 tariffs.
25% Section 232 tariffs on steel and aluminum -- which are applied only on the value of non-U.S. steel and aluminum content -- may be subject to both aluminum and steel tariffs. This depends on whether the product’s tariff codes are in-scope for both Section 232 lists and could impact food packaging machinery and inputs imported by PMMI members.
Reciprocal tariffs: if the import is not a product of Mexico or Canada and is not subject to Section 232 tariffs on steel and aluminum, then the import is subject to reciprocal tariffs unless exceptions apply (e.g., Annex II).
The exemption for Section 232 tariffs on non-USMCA compliant steel and aluminum imports is retroactive to March 4 and importers will be able to receive a refund “processed pursuant to applicable laws and U.S. Customs and Border Protection’s standard procedures for such refunds”.
Further, the tariffs listed above are still subject to stacking of other tariffs, including (as applicable):
MFN tariff;
Section 301 tariffs of up to 25% on goods from China;
IEEPA fentanyl tariff of 20% on goods from China;
IEEPA reciprocal baseline tariff of 10% on goods from countries other than Canada, Mexico and China; and
IEEPA reciprocal tariff of 125% on goods from China.
Please see the table below for examples of PMMI inputs and finished goods that are subject to additional tariffs.
Please see below a table of the tariff actions for reference.
