Chico, CA, May 2, 2025 – The U.S. President has issued an executive order, “Addressing Certain Tariffs on Imported Articles,” introducing significant adjustments to the application of tariffs on imported goods. This policy shift is poised to impact the commercial vehicle industry through the refinement of tariff implementation procedures.

The executive order’s primary objective is to mitigate the cumulative effect of multiple tariffs on imported commodities, a practice known as “tariff stacking.” This adjustment directly addresses the financial implications for industries reliant on imported components, notably the commercial vehicle sector.

Key Points:

• Tariff Non-Stacking:
  • The executive order aims to prevent the cumulative application of tariffs on single imported articles, thereby reducing the overall tariff burden.
  • Specific provisions delineate the application of tariffs imposed under various presidential actions, including those related to automobiles, automobile parts, steel, and aluminum.
• Commercial Vehicle Industry Impact:
  • The commercial vehicle industry, which utilizes imported materials and components, is directly affected by these tariff modifications.
  • The non-stacking of tariffs may result in cost reductions for manufacturers, potentially leading to more competitive vehicle pricing.
  • Amendments to Proclamation 10908, included within the executive order, adjust import duties on automotive parts, which impacts the cost of importing those parts used in commercial vehicles.
• Retroactive Application:
  • The executive order applies retroactively to merchandise entries on or after March 4, 2025, potentially enabling affected businesses to seek refunds.
• Automotive Parts adjustments:
  • Adjustments to import duties for automotive parts include a tiered duty structure.
  • The introduction of an import-adjustment offset amount for manufacturers, based on aggregate MSRP of US assembled automobiles, is also included.

Industry Implications:

The executive order is anticipated to introduce greater clarity and predictability to the tariff landscape for commercial vehicle manufacturers and importers. The potential reduction in tariff burdens is expected to contribute to cost stabilization and enhance industry competitiveness.

U.S. Customs and Border Protection (CBP) will disseminate further guidance regarding refund procedures and necessary updates to the Harmonized Tariff Schedule of the United States (HTSUS).