03/12/2025

U.S. Tariffs - Latest Client Updates

The U.S. tariff landscape is changing fast. GEODIS has collected the latest updates from the U.S. administration to help you understand the impact on your business. Use our updates to make informed choices and manage your freight forwarding.

 

Please see our latest customs and tariff updates below. Please note that due to the rapidly changing situation with U.S. tariffs, some of this information may quickly become outdated, so always check with your customs brokerage representative for the latest details. We also have a comprehensive guide on how to reduce your tariff exposure.

 

For specific questions about how these changes may impact your supply chain, please contact your GEODIS representative.

 

United States

 

Canada

 

Mexico

 

For other countries, please get in touch with your local point of contact, or visit the GEODIS website at geodis.com.

This information is for general informational purposes only, and does not constitute, and should not be considered, to be legal advice or customs advice specific to your company’s circumstances. The information herein is presented without any representation or warranty, including as to the accuracy or completeness of the information presented.

March 12 2025 - Increases to Aluminum and Steel Tariffs

On February 10, 2025, the President issued Proclamations 10895 and 10896, imposing specific tariff rates on aluminum and steel products and their derivatives, with tariffs on derivatives outside of Chapters 73 and 76 based on the value of their aluminum or steel content. The Department of Commerce has issued a notice, to be published today, confirming that systems are in place to process and collect these tariffs effective 12:01 a.m. EDT on March 12, 2025.

 

Key Takeaways

  • 25% Section 232 Duties on Steel and Aluminum Products Effective 12:01 a.m. EDT on March 12, 2025
  • 25% Section 232 Duties on Steel and Aluminum Derivatives Effective 12:01 a.m. EDT on March 12, 2025

 

Aluminum Articles and Derivatives

 

Provisional Tariff Breakdown:

  • 9903.85.02: Aluminum products except derivative articles listed in subdivision (g) – 25% additional duty. 
  • 9903.85.04: Derivative aluminum products listed in subdivision (i) (existing aluminum derivative articles subject to Section 232) – 25% additional duty. 
  • 9903.85.07: Derivative aluminum products listed in subdivision (j) (new aluminum derivative articles classified in Chapter 76 subject to Section 232) – 25% additional duty. 
  • 9903.85.09: Derivative aluminum articles listed in subdivision (j) or (k) (new derivative aluminum articles), where the derivative aluminum products were processed in another country from aluminum articles that were smelted and cast in the United States – 0% additional duty. 
  • 9903.85.08: Derivative aluminum products listed in subdivision (k) (new aluminum derivative articles not classified in Chapter 76 subject to Section 232): the import duty is based upon the value of the aluminum content
  • 9903.85.67- for aluminum products from Russia – 200% additional duty 
  • 9903.85.68 - for aluminum derivative products from Russia - 200% additional duty
  • 9903.85.70 – (FTZ specific) for aluminum derivative products from Russia – 200% additional duty

 

Click here to view or download the "List of Aluminum HTS Subject to Section 232".

 

FTZ – Foreign-Trade Zone 

  • Goods admitted into the zone on, or, after March 12,2025 (except for domestic goods) must be admitted in “privileged foreign status” and will be subject at time of entry to any duties in place at time of admission. 
  • The smelt and cast reporting requirements also apply to goods admitted into an FTZ and withdrawn from FTZ on, or, after March 10, 2025. 

 

Reporting Smelt and Cast Countries

  • To report the primary country of smelt, secondary country of smelt, or country of most recent cast importers must report the International Organization for Standardization (ISO) code on aluminum articles and derivative aluminum articles on all countries subject to section 232.   
  • Filers must report “Y” for primary country of smelt; and/or secondary country of smelt. Filers may not report “N” for both primary country of smelt and secondary country of smelt.
  • If the imported aluminum is manufactured only from recycled aluminum, then filers should report “Y” for the secondary country of smelt, and report the country reported as the country of origin of the imported article as the secondary country of smelt code.  Take note that aluminum manufactured only from recycled aluminum is not very common. Importers must be able to provide manufacturing documents, upon request, to substantiate the manufacturing process for the recycled aluminum product.
  • Country of Origin United States is not covered by the countries of smelt and cast reporting requirements.  If the imported product was smelted and cast in the United States, then the importer will report “US” for the country of smelt and “US” for the country of cast.

 

 

Steel Articles and Derivative Steel Articles

 

Provisional Tariff Breakdown:

  • 9903.81.87: Iron or steel products listed in subdivision j (except derivative articles) – 25% additional duty.
  • 9903.81.88: (FTZ specific) Iron or steel products except for derivative articles listed in subdivision (l), (m) and (n) that are admitted to a U.S. foreign trade zone under “privileged foreign status” before March 12, 2025, and entered for consumption on or after March 12, 2025. - 25% additional duty.
  • 9903.81.89: Derivative iron or steel products listed in subdivision (l) (existing steel derivative articles subject to Section 232).
  • 9903.81.90: Derivative iron or steel products listed in subdivision (m) (new steel derivative articles classified in Chapter 73 subject to Section 232). - 25% additional duty
  • 9903.81.93: (FTZ specific) Derivative products of iron or steel, as specified in subdivisions (l) and (m) (existing derivative steel products, and new derivative steel products in Chapter 73) admitted to a U.S. foreign trade zone under “privileged foreign status” before March 12, 2025, and entered for consumption on or after March 1, 2025. – 25% additional duty. 
  • 9903.81.92: Derivative steel or iron products listed in subdivision (m) or (n) (new derivative steel articles) where the derivative iron or steel product was processed in another country from steel articles that were melted and poured in the United States. – 0% additional duty. 
    • HTS 9903.81.92 also applies to such goods that were admitted to a U.S. foreign trade zone and granted “privileged foreign status” before March 12, 2025, and entered for consumption, or withdrawn from warehouse for consumption, on or after March 12 (see Foreign Trade Zone section below).
  • 9903.81.91: Derivative iron or steel products listed in subdivision (n) (new steel derivative articles not classified in Chapter 73 subject to Section 232): the import duty is on the value of the steel content.
    • 9903.81.91 also applies to such goods that were admitted to a U.S. foreign trade zone and granted “privileged foreign status” before March 12, 2025, and entered for consumption, or withdrawn from warehouse for consumption, on or after a date to be certified in the Federal Register by the Secretary of Commerce

 

Click here to view or download the "List of Steel HTS Subject to Section 232".

 

FTZ – Foreign-Trade Zone 

  • Goods admitted into the zone on, or, after March 12,2025 (except for domestic goods) must be admitted in “privileged foreign status” and will be subject at time of entry to any duties in place at time of admission. 
  • Unlike aluminum, any steel or derivative steel article (with the exception of domestic goods) previously granted “privileged foreign status” prior to March 12, 2025, will also be subject upon entry to additional duties. 
  • Tariffs to be used are indicated above under the “Provisional Tariff Breakdown,” as well. 
    • 9903.81.88: Iron or steel products (including those classified under GAEs). 
    • 9903.81.93: All iron or steel derivative products, except as noted below:  
      • 9903.81.91: Iron or steel derivative products classified outside of Chapter 73. 
      • 9903.81.92: Iron or steel derivative products with a melt and pour of United States

 

Melt and Pour Reporting Requirements:

  • The reporting of the country of melt and pour and applicability code is mandatory for both steel and steel derivatives. 
  • To report the country of melt and pour, importers must report the International Organization for Standardization (ISO) code on steel articles and derivative steel articles subject to Section 232. 
  • For steel articles, importers must report the ISO code where the steel was originally melted and poured. 
  • For steel derivatives, importers must report the ISO code where the steel was originally melted or “OTH” (for other countries). 
  • For products melted and poured in the United States, importers must indicate “US” as the country of melt and pour.

 

References:

March 7 2025 - Duties Delayed on Goods from MX and CA That Qualify Under USMCA

 

Trump announces tariffs on goods from MX and CA that qualify under USMCA are exempt from duties.

 

On March 6, 2025, President Trump announced adjustments to tariffs imposed on imports from Canada and Mexico in recognition of the structure of the automotive supply chain that strives to bring production into America.

 

As of 12:01 am EST on March 7, 2025, the new International Emergency Economic Powers Act (IEEPA) duties on goods from Canada and Mexico, for the time being are:

 

  • 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
  • A lower 10% tariff on those energy products imported from Canada that fall outside the USMCA preference.
  • A lower 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA preference.
  • No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.
  • The following new HTSUS classification applies to products that qualify for USMCA. 

 

Canada:

9903.01.14: Articles that are entered free of duty under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTS, as related to the USMCA.

 

Potash

Effective on or after 12:01 a.m. eastern standard time March 7, 2025, potash that is the product of Canada entered for consumption or withdrawn from warehouse for consumption is exempt from the additional duty rates that were implemented March 4, 2025, if the potash qualifies for USMCA. If the potash does not qualify for USMCA, it will be subject to an additional 10% duty as opposed to the 25% under 9903.01.10.

 

The following new HTSUS classification applies to potash that does not qualify for USMCA and for which the additional 10% duty applies:

 

9903.01.15: Potash that is a product of Canada, as provided for in U.S. note 2(I) to this subchapter.

 

Mexico:

9903.01.04: Articles that are entered free of duty under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTS, as related to the USMCA.

 

Potash

Effective on or after 12:01 a.m. eastern standard time March 7, 2025, potash that is the product of Mexico entered for consumption or withdrawn from warehouse for consumption is exempt from the additional duty rates that were implemented March 4, 2025, if the potash qualifies for USMCA. If the potash does not qualify for USMCA, it will be subject to an additional 10% duty as opposed to the 25% under 9903.01.01.

 

The following new HTSUS classification applies to potash that does not qualify for USMCA and for which the additional 10% duty applies:

 

9903.01.05:  Potash that is a product of Mexico, as provided for in U.S. note 2(c) to this subchapter.

 

The applicable HTSUS subheadings for potash are as follows:

2815.20.0050

2815.20.0090

3104.20.0010

3104.20.0050

3104.30.0000

3104.90.0100

3105.10.0000

3105.20.0000

3105.60.0000

 

There is currently no published expiration date for the USMCA exemption.

 

References:

CSMS # 64336037 - GUIDANCE – Update on Additional Duties on Imports from Canada – USMCA Qualifying Products and Potash

CSMS # 64335789 - GUIDANCE – Update on Additional Duties on Imports from Mexico - USMCA Qualifying Products and Potash

Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border – The White House

Amendment to Duties to Address the Flow of Illicit Drugs Across Our Southern Border – The White House

Fact Sheet: President Donald J. Trump Adjusts Tariffs on Canada and Mexico to Minimize Disruption to the Automotive Industry


 

March 4 2025 - Increases to China, Canada, and Mexico Tariffs

 

Shortly before 5 p.m., on March 3, 2025, President Donald Trump issued an Executive Order (EO) raising tariffs on China and Hong Kong from 10% to 20%, citing insufficient efforts to curb drug smuggling. In addition, on March 3, 2025, U.S Customs and Border Protection (CBP) issued notices regarding the implementation of 25% tariffs on most goods from Canada and all goods from Mexico. 

 

Key Takeaways

 

  • IEEPA Tariffs for goods from CN/HK increase from 10%-20% effective March 4, 2025 
  • 25% IEEPA Tariffs in place for goods from CA and MX effective March 4, 2025 
  • Drawback not allowed for IEEPA tariffs 
  • De-minimis currently available until further notice

     

China / Hong Kong IEEPA Increase - Update to tariffs, increase from 10% to 20%  

 

  • As directed by the EO, CBP is updating the additional duties from 10% to 20% and implementing a new Chapter 99 HTSUS number. 
  • 9903.01.20: All imports of articles that are products of China and Hong Kong, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, and other than products for personal use included in accompanied baggage of persons arriving in the United States, will be assessed an additional ad valorem rate of duty of 10%. This applies to products of China and Hong Kong, loaded on vessel at port of loading or in transit on final mode of transit to US on or after February 1, 2025, and entered for consumption, or withdrawn from warehouse for consumption before March 4, 2025. 
  • 9903.01.24: All imports of articles that are products of China and Hong Kong, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, and other than products for personal use included in accompanied baggage of persons arriving in the United States, will be assessed an additional ad valorem rate of duty of 20%. This will now apply to goods that are the products of China and Hong Kong, loaded on vessel at port of loading or in transit on final mode of transit to US on or after February 1, 2025, and entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time March 4, 2025. Tariff available in ACE.  
  • Exclusions: 
  • 9903.01.21: Articles the product of China and Hong Kong that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering. 
  • 9903.01.22: Articles the product of China and Hong Kong that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. 
  • 9903.01.23: Except for products described in headings 9903.01.21 and 9903.01.22, and other than products for personal use included in accompanied baggage of persons arriving in the United States, articles the product of China and Hong Kong that: (1) were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the United States, before 12:01 a.m. eastern standard time on February 1, 2025; and (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 4, 2025, and before 12:01 a.m. eastern standard time on March 7, 2025. 
  • Foreign-Trade Zone – Goods that “are admitted into a United States foreign trade zone on or after 12:01 a.m. Eastern Standard Time on February 4, 2025, must be admitted as "privileged foreign status" as defined in 19 CFR 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone.  
  • Drawback not available for IEEPA tariffs.  
  • De-minimis continues to be available until further notice. 

     


 

Loaded on Vessel at Port of Loading or In Transit on Final Mode of Transit to US 
Entered for Consumption or Withdrawn from Warehouse 
CN IEPPA HTS 
CN IEPPA Duty Rate 
Prior to February 1, 2025 
Between February 4, 2025 – March 7, 2025 
9903.01.23 
0% 
On or after February 1, 2025 
Before March 4, 2025 
9903.01.20 
10% 
On or after February 1, 2025 
On or after March 4, 2025 
9903.01.24 
20% 

References: 

Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China – The White House 

 

CSMS # 64299816 - UPDATE – Additional Duties on Imports from China and Hong Kong 

 

Canada IEEPA Tariffs 

 

  • Effective on or after 12:01 a.m. Eastern Standard Time on March 4, 2025, with respect to goods that are the product of Canada entered for consumption, or withdrawn from warehouse for consumption, the following HTSUS classifications and additional duty rates apply: 
  • 9903.01.10:  All imports of articles that are products of Canada, other than products classifiable under headings 9903.01.11, 9903.01.12, and 9903.01.13, and other than products for personal use included in accompanied baggage of persons arriving in the United States, will be assessed an additional ad valorem rate of duty of 25%. Tariff available in ACE. 
  • 9903.01.13:  Imports of energy or energy resources of Canada, as defined in section 8 of Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency) as: crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3) will be assessed an additional ad valorem rate of duty of 10%. Tariff available in ACE. 
  • Exclusions: 
  • 9903.01.11:  Articles the product of Canada that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering. Tariff available in ACE. 
  • 9903.01.12:  Articles the product of Canada that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. Tariff available in ACE. 
  • Free Trade Agreement - Products of Canada that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule (e.g., the United States-Mexico-Canada Agreement), or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, are subject to the additional ad valorem rate of duty imposed by headings 9903.01.10 and 9903.01.13.  
  • The additional duties imposed by headings 9903.01.10 and 9903.01.13 that apply to products of Canada include both goods of Canada under the rules of origin set forth in part 102 (with a Country of Origin CA,) title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Canada was the last country of substantial transformation prior to importation into the United States.  
  • Foreign-Trade Zone - Goods that “are admitted into a United States foreign trade zone on or after 12:01 a.m. Eastern Standard Time on March 4, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41.  Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone.” 
  • Drawback not available for IEEPA tariffs.  
  • De-minimis continues to be available until further notice.  
  • Chapter 98 exemptions with exclusions. 

 

Reference:  

 CSMS # 64297449 - GUIDANCE: Additional Duties on Imports from Canada 

 

 

Mexico IEEPA Tariffs 

 

  • Effective on or after 12:01 a.m. Eastern Standard Time on March 4, 2025, with respect to goods that are the product of Mexico entered for consumption, or withdrawn from warehouse for consumption, the following HTSUS classification and additional duty rate apply: 
  • 9903.01.01: All imports of articles that are products of Mexico, other than products classifiable under headings 9903.01.02 and 9903.01.03 and other than products for personal use included in accompanied baggage of persons arriving in the United States will be assessed an additional ad valorem rate of duty of 25%. Tariff available in ACE. 
  • Exclusions: 
  • 9903.01.02:  Articles the product of Mexico that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering. Tariff available in ACE. 
  • 9903.01.03:  Articles the product of Mexico that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. Tariff available in ACE. 
  • Free Trade Agreement- Products of Mexico that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule (e.g., the United States-Mexico-Canada Agreement), or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, are subject to the additional ad valorem rate of duty imposed by headings 9903.01.01.  
  • The additional duties imposed by headings 9903.01.01 that apply to products of Mexico include both goods of Mexico under the rules of origin set forth in part 102, title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Mexico was the last country of substantial transformation prior to importation into the United States.  
  • Drawback not available for IEEPA tariffs.  
  • De-minimis continues to be available until further notice.  
  • Chapter 98 exemptions with exclusions.  

 

Reference: 

CSMS # 64297292 - GUIDANCE: Additional Duties on Imports from Mexico 

 

Feb 18 2025 - Increases to U.S. steel and aluminum tariffs - Effective March 12, 2025

GEODIS wants to keep you informed about significant changes to U.S. Section 232 tariffs on steel and aluminum imports, which will impact global trade operations beginning March 12, 2025. 

 

Key takeaways

 

  • All existing country exemptions for Section 232 steel and aluminum tariffs will be eliminated
  • Steel and aluminum tariffs will be set at 25% for imports into the U.S.
  • No new tariff exclusions will be granted; existing exclusions are valid until expiration or volume completion, whichever occurs first.
  • New derivative products will be subject to tariffs (specific lists pending) (list is available under Annex I of the Federal Register)
  • Additional documentation requirements for U.S.-processed materials

 

Detailed information

 

Steel Tariff Changes:

  • Effective March 12, 2025, existing alternative agreements will be terminated for: Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, the U.K., and Ukraine
  • The Section 232 steel tariff exclusion process is ending:
    • No new exclusions will be considered or renewed
    • Existing exclusions remain valid until expiration or volume completion, whichever occurs first.
    • All general product exclusions terminate March 12
  • New 25% tariff on additional steel derivative products (implementation pending Commerce Department systems readiness)
  • For derivatives outside Chapter 73, tariffs will apply only to aluminum content
  • Exemption available for derivatives processed from U.S.-melted and poured steel, with required CBP documentation
  • The Federal Register has been published which includes the steel derivative HTS under Annex I
  • Importers of derivatives will be required to provide CBP information necessary to identify the steel content used in the manufacture of the articles
  • CBP shall prioritize reviews of the classification of imported steel articles and derivative steel articles and, in the event that it discovers misclassification resulting in loss of revenue of the ad valorem duties proclaimed herein, it shall assess monetary penalties in the maximum amount permitted by law

 

 

Aluminum Tariff Changes:

 

  • Tariff rate increases to 25% on March 12, 2025 for all countries except Russia
  • Effective March 12, 2025, exemptions and quota agreements will be terminated for: Argentina, Australia, Canada, Mexico, the EU, and the U.K.
  • The Section 232 aluminum tariff exclusion process is ending:
    • No new exclusions will be considered or renewed
    • Existing exclusions remain valid until expiration or volume completion, whichever occurs first
    • All general product exclusions terminate March 12
  • New 25% tariff on additional aluminum derivative products (implementation pending Commerce Department systems readiness)
  • Derivative articles in Annex I from Russia where any amount to of primary* aluminum is smelted or cast in Russia is subject to 200% duties.
    • Primary aluminum is defined as new aluminum metal that is produced from alumina (or aluminum oxide) by the electrolytic Hall-Heroult process.
  • For derivatives outside Chapter 76, tariffs will apply only to aluminum content
  • Exemption available for derivatives made from U.S.-smelted and cast aluminum, with required CBP documentation
  • The Federal Register has  been published which includes the aluminum derivative HTS under Annex I
  • Importers of derivatives will be required to provide CBP information necessary to identify the aluminum content used in the manufacture of the articles
  • CBP shall prioritize reviews of the classification of imported aluminum articles and derivative aluminum articles and, in the event that it discovers misclassification resulting in loss of revenue of the ad valorem duties proclaimed herein, it shall assess monetary penalties in the maximum amount permitted by law

 

Additional Provisions:

 

  • Producers and trade associations may request additions to the derivative products list for both steel and aluminum
  • Implementation of certain derivative tariffs pending Commerce Department system updates
  • No new exclusions will be granted or renewed for either steel or aluminum

 

GEODIS customs brokerage and trade advisory teams are closely monitoring these developments and will provide updates as additional information becomes available.

 

References: Presidential Proclamation, White House Fact Sheet.

February 7, 2025 - De Minimis Exemption Temporarily Reinstated for China and Hong Kong

 

On February 5, 2025, President Donald Trump issued an Executive Order amending a previous order from February 1, 2025, which had removed the de minimis exemption for goods of China and Hong Kong valued under $800.

The amendment reinstates the de minimis exemption temporarily, allowing duty-free entry for eligible low-value packages until the Secretary of Commerce confirms that adequate systems are in place to efficiently process and collect the applicable tariffs.

This move aims to provide time for the Commerce Department to establish procedures to manage inspections and levy collections on these shipments

Feb 5 2025 - U.S. Tariffs on Canada and Mexico are Paused, China Tariffs Remain

On February 1, 2025, President Trump announced major changes to U.S. tariff policies affecting trade with Canada, Mexico, and China. The Trump Administration announced these changes via Executive Orders (EOs) under the International Emergency Economic Powers Act (IEEPA).

 

Since making this announcement, the planned tariffs on Canada and Mexico have been paused for 30 days while leaders from the U.S., Mexico, and Canada negotiate stronger border controls and other matters. New tariffs on China are in place.

 

Key Takeaways

 

  • New U.S. tariffs on Canadian goods were set at 25% (10% for energy products), Chinese goods at 10%, and Mexican goods at 25%
  • Mexican and Canadian tariffs have been temporarily suspended for 30 days pending agreement on border security measures
  • De minimis exemptions are revoked for all affected countries, which is currently just China
  • U.S. tariffs on China took effect on February 4, 2025, at 12:01 AM Eastern Time
  • China has announced counter tariffs on some U.S. goods coming into China
  • Canada’s plans to implementing 25% surtax / tariffs on $30 billion worth of U.S. goods are currently on hold

 

New U.S. Tariff Rates

The additional tariff rates originals established by the United States were:

 

  • Canada: 25% on all goods, with energy products at 10% (on hold for 30 days)
  • Mexico: 25% on all goods (on hold for 30 days)
  • China: 10% on all goods


 

These rates apply in addition to existing Section 301, 232, 201, Antidumping, and Countervailing duties.

 

Other impacts of U.S. Tariffs

The Executive Orders make further changes to tariff arrangements beyond the increase in tariff rates:

 

  • De minimis exemptions: Revoked for China, Canada (temporarily paused), and Mexico (temporarily paused)
  • Drawback: Not permitted on goods subject to these EO duties (currently China)

 

Foreign-Trade Zones (FTZ) Operations

Products subject to additional tariffs may be admitted into Foreign Trade Zones (FTZs) but must enter under "Privileged Foreign Status" or have duties and tariffs paid before being received in Domestic Status.

 

Mexico and Canada Tariff Suspension

The  U.S. has temporarily paused the 25% tariff increase on Mexican imports for 30 days. The U.S. has also temporarily paused Canadian tariffs for 30 days.