Addressing Certain Tariffs on Imported Articles

4/29/2025

Executive Orders

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Action Summary

Purpose and Authority:
- Tariffs imposed under various statutory authorities (e.g., International Emergency Economic Powers Act, National Emergencies Act, Trade Acts) to protect national security, foreign policy, and the economy.
- Aims to prevent cumulative (“stacked”) tariffs from exceeding what is necessary for policy goals.
Applicability:
- Covers specific tariffs under designated actions, including:
  - Proclamation 10908 (Automobiles and Automobile Parts)
  - Executive Orders addressing illicit drug flows at the Northern and Southern borders (and their amendments)
  - Proclamations regarding imports of Aluminum and Steel (and their amendments)
- Defines which tariff measures apply to imported articles subject to overlapping executive actions.
Non-Stacking of Tariff Measures:
- An article taxed under one action (e.g., automobiles) cannot have additional tariffs from overlapping actions.
- Tariffs from border-related actions (Northern/Southern) preclude additional duties from Aluminum/Steel actions, except when separately qualifying.
- When overlapping with tariffs not listed in the order, the listed tariff is cumulative with those other tariffs.
Non-Applicability to Other Tariff Measures:
- This order does not alter or limit other duty measures, taxes, fees, or exactions (e.g., those in the HTSUS or other statutory duties).
Implementation and Coordination:
- DHS, via U.S. Customs and Border Protection and in consultation with the Treasury, is tasked with updating guidance, systems, and enforcement mechanisms.
- Commerce, DHS, Treasury, and the U.S. Trade Representative will coordinate to ensure consistent application.
- Necessary changes to the HTSUS must be completed by 12:01 a.m. EDT on May 16, 2025.
- Order applies retroactively to imports made on or after March 4, 2025, with refunds processed per applicable procedures.
General Provisions:
- Clarifies that the order does not diminish the authority of executive departments or impact the roles of the Office of Management and Budget.
- Affirms that no party gains enforceable rights against the United States by this order.

Risks & Considerations

The Executive Order aims to prevent the cumulative effect of overlapping tariffs on imported articles, which could stabilize the cost of imports. This may reduce the financial burden on industries reliant on imported goods, including educational institutions that procure international resources.
By clarifying the non-stacking of tariffs, the order could lead to more predictable pricing for imported goods, potentially benefiting university departments that rely on international equipment and materials.
However, the order maintains the validity of existing tariffs, which means that any financial relief is limited to specific cases where tariffs would have otherwise stacked. This could still result in significant costs for certain imports.
Vanderbilt University may need to assess its procurement strategies to ensure compliance with the updated tariff regulations and to optimize cost savings where applicable.

Impacted Programs

Vanderbilt’s Procurement Office may need to review and adjust its purchasing strategies to align with the new tariff regulations, ensuring that the university benefits from any potential cost reductions.
The Office of Financial Affairs might need to monitor the financial implications of these tariff changes on the university’s budget, particularly in areas involving international purchases.
Research departments that rely on imported materials and equipment could see changes in their cost structures, necessitating adjustments in grant applications and budget planning.

Financial Impact

The clarification on non-stacking tariffs could lead to cost savings for Vanderbilt University in areas where multiple tariffs previously applied, potentially freeing up funds for other initiatives.
Despite potential savings, the continued application of existing tariffs means that the university must remain vigilant in managing its international procurement costs.
There may be opportunities for Vanderbilt to engage in advocacy or partnerships to further influence tariff policies that impact higher education and research sectors.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential financial impacts on procurement strategies.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor changes in tariff policies, especially those affecting imported articles relevant to university research and operations. Understanding these changes will help in adjusting procurement strategies and budgeting for imported goods.
The Vanderbilt Center for International Business should analyze the impact of non-stacking tariff measures on international trade relations and supply chains. This analysis can guide strategic decisions in international collaborations and partnerships.
Vanderbilt’s Economic Research Department should conduct studies on the broader economic implications of the executive order, particularly how it might affect industries and sectors that are significant to the university’s research and educational programs.
The Vanderbilt Law School should explore the legal ramifications of the executive order, providing insights into compliance and potential challenges that may arise from the new tariff regulations.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Business School to develop case studies and courses on the impact of tariff policies on global business strategies. This can enhance the curriculum and provide students with real-world insights into international trade dynamics.
By engaging with policymakers and industry leaders, Vanderbilt can position itself as a thought leader in discussions on trade policy and economic strategy. Hosting forums and workshops on the implications of tariff adjustments can further establish the university as a hub for innovative economic thought.

Relevance Score: 3 (The order requires some adjustments to processes and procedures related to international trade and economic strategy.)

Average Relevance Score: 3.8

Timeline for Implementation

HTSUS Changes Deadline: Any changes to the Harmonized Tariff Schedule of the United States must be completed by 12:01 a.m. EDT on May 16, 2025.
Retroactive Application Date: The order applies retroactively to all entries of merchandise made on or after March 4, 2025.

Relevance Score: 5

Impacted Government Organizations

U.S. Customs and Border Protection (CBP): Tasked with implementing guidance, updating enforcement systems, and administering the tariff policies as directed by the order.
Department of Homeland Security (DHS): Oversight authority for CBP’s implementation efforts and coordination with other agencies in updating relevant systems and regulations.
Department of the Treasury: Collaborates with DHS to ensure proper implementation of tariff adjustments and to coordinate financial oversight related to customs duties.
Department of Commerce: Works in conjunction with DHS and the Treasury to issue additional guidance for consistent interpretation and application of the tariff measures.
United States Trade Representative (USTR): Involved in coordinating policy and trade guidance efforts to ensure consistent application of the tariff provisions across trade policies.
United States International Trade Commission (USITC): The Chair is responsible for coordinating necessary changes to the Harmonized Tariff Schedule to execute the order.
Office of Management and Budget (OMB): Mentioned in the context of ensuring that the order does not interfere with its budgetary, administrative, and legislative oversight functions.

Relevance Score: 3 (A moderate number of Federal Agencies are impacted by the order.)

Responsible Officials

Secretary of Homeland Security – Charged with updating guidance, systems, and enforcement mechanisms; authorized to determine and coordinate necessary modifications to the HTSUS through consultation and coordination with other officials.
Commissioner of U.S. Customs and Border Protection – Responsible for executing the directive in coordination with the Secretary of Homeland Security and the Secretary of the Treasury.
Secretary of the Treasury – Tasked with consultation and coordination with the Secretary of Homeland Security and the Secretary of Commerce to ensure consistent interpretation and application of the tariffs policy.
Secretary of Commerce – Works in tandem with the Secretary of Homeland Security, Secretary of the Treasury, and the United States Trade Representative to provide further guidance on the implementation of tariff policies.
United States Trade Representative – Engages in coordination with the aforementioned officials to ensure the consistent application of the directive.
Chair of the United States International Trade Commission – Collaborates with the Secretary of Homeland Security to implement necessary changes to the HTSUS.

Relevance Score: 5 (Impacts multiple Cabinet-level officials and agency heads with significant national economic and security implications).