02/18/2025

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 Please note that due to the rapidly changing situation with U.S. tariffs, some of this information may quickly become outdated, so always check with your customs brokerage representative for the latest details.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.

 

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.