UPDATE (02.03.25 5 PM ET): Multiple media sources report that there will now also be a 30 day pause to the implementation of the Canada tariffs.
UPDATE (02.03.25 3 PM ET): Federal Register notices outline the tariff exemption which allows for processing of goods already in transit and the required importer certification process:
- Goods which are in transit (aboard the mother vessel, not feeder vessel) prior to February 1st will be exempt from the new tariffs at the time of entry, provided the US Customs entries are processed by February 7th (if coming from Canada) and March 7th (if coming from China)
- Importers can apply the exemption on eligible entries by utilizing an additional HTS code at the time of entry: 9903.01.23, which will serve as the certification.
(Links to full Federal Register documents included below)
Over the weekend, President Trump followed through on promises of new tariffs that we’ve been hearing about since the campaign trail. While this had been anticipated for months, the formal announcement came over the weekend with the signing of an Executive Order on February 1st.
The new tariffs have been implemented under the International Emergency Economic Powers Act (IEEPA). This action stems from the administration's declaration of a national emergency, citing the significant threat posed by illegal immigration and the flow of illicit narcotics. These tariffs include:
- 25% tariff on all imports from Mexico and Canada
- 10% tariff on Canadian energy products
- 10% additional tariff on all imports from China (including Hong Kong)
The tariffs take effect at 12:01 a.m. Tuesday, February 4, 2025.
** As of Monday morning, there are discussions about a 30-day pause on Mexican tariffs. The U.S. and Mexican presidents are negotiating a deal that includes Mexico deploying an additional 10,000 troops to the U.S.-Mexico border. This measure aims to curb the flow of illegal immigration and drug trafficking, addressing the primary concerns of the Trump administration. **
On or after this date, these new tariffs will be imposed on all US imports from Canada, Mexico, and China. These newly announced percentages are in addition to existing duty rates and other tariffs resulting in a further cumulative increase in import costs:
- Goods originating in Canada or Mexico where USMCA applies - the special duty rate (0%) will still apply, but the new tariff would be assessed based upon the declared commercial value of the import.
- Goods with Country of Origin China – the product’s general duty rate, Section 301 tariffs (if applicable based upon HTS code), AND the new tariff would ALL apply based upon the declared commercial value of the import.
Also note de minimis shipments, typically exempt from duties (duty free), are not eligible for this special treatment if they contain products subject to the newly imposed or increased tariffs.
The order stipulates that if any of the three nations (Canada, Mexico, or China) enact retaliatory duties or similar measures, the scope of tariffs imposed under the IEEPA can be increased or expanded.
Federal Register notices corresponding to each Executive Order were published on February 3rd providing comprehensive details and the legal framework for this implementation:
- Canada (FRN 2025-02291)
- China (FRN 2025-02293)
Concurrently, U.S. Customs and Border Protection has issued a Cargo Systems Messaging Service (CSMS) to provide the trade community guidance on operational details for processing entries.
The White House issued four notices providing more detailed information on February 1st:
- White House notice on Canada
- White House notice on Mexico
- White House notice on China
- White House Fact Sheet - Tariffs on Imports from Canada, Mexico, and China
This is a developing story. We will continue to share more detailed information as it is released.
This post last updated 02.03.25, 5:26 PM ET.
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