By Anita Hamilton and George Glover

Tariffs on certain foreign goods imported to the U.S. may be lower than anticipated, thanks to a new directive from the president aimed at limiting the cumulative effect of multiple levies on the same product.

"To the extent these tariffs apply to the same article, these tariffs should not all have a cumulative effect (or "stack" on top of one another) because the rate of duty resulting from such stacking exceeds what is necessary to achieve the intended policy goals," the administration wrote in an executive order signed by President Donald Trump and released Tuesday.

For example, the 25% tariff he imposed on certain goods from Mexico under an emergency order related to the fentanyl trade cannot be stacked with separate, 25% tariffs on steel or aluminum imports.

However, some tariffs can be stacked and all imports "may still be subject to other applicable duties, taxes, fees, exactions, and charges."

In a separate order, the president lowered tariffs on imported car parts set to go into effect on May 3, by offering auto makers an offset that they can apply to tariffs on parts imported in the future.

Here's more tariff news:

Car Stocks Rise

Shares of Ford, Stellantis, and Tesla rose Tuesday before President Donald Trump signed his executive order scaling back his tariffs on the auto makers. Ford closed up 1.3%, Stellantis rose 2.5%, and Tesla was up 2.1%. General Motors, on the other hand, slid 0.6%.

Trump signed the executive order easing levies on car parts imported for vehicles made in the U.S. while aboard Air Force One on his way to Michigan to mark his 100th day in office.

Adidas, HSBC, Porsche Warn of Tariff Impact

Three of Europe's biggest companies flagged Trump's trade policies Tuesday as a potential drag on their earnings.

Shoe maker Adidas said tariffs had stopped it from upgrading its full-year revenue and profit guidance and warned that the levies would eventually drive up the price of its sneakers, while bank HSBC warned that the economic uncertainty could weigh on demand for lending.

Sports-car maker Porsche cut its outlook, citing a slump in deliveries in China as well as tariffs in the U.S.

Write to Anita Hamilton at anita.hamilton@barrons.com and George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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April 29, 2025 17:14 ET (21:14 GMT)

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