Washington, D.C. (February 13, 2025)— US President Trump imposes new tariffs on imports from Canada, Mexico and China effective February 4, 2025. The move, following an executive order issued by the International Emergency Economic Powers Act (IEEPA), could exacerbate trade tensions and trigger retaliatory action.

Tariff measures

• Canada: A 25% tariff is imposed on all imported goods and 10% on energy resources. Oil and gas tariffs are expected to be further increased in mid-February.
• Mexico: A 25% tariff on all imported goods, including energy resources.
• PRC: A 10% tariff is imposed on all imported goods. Hong Kong and Macau imports are not applicable.

The new tariffs apply to all imported goods without a specific US Harmonized Tariff Schedule (HTSUS) classification code. The U.S. Department of Homeland Security (DHS) will announce more technical details in the Federal Gazette.

Implementation Details and Exemptions

THE NEW TARIFFS APPLY TO GOODS ENTERING THE UNITED STATES AFTER 12:01 A.M. (EASTERN TIME) ON FEBRUARY 4, 2025. However, goods already in transit before 12:01 a.m. on February 1, 2025 may be exempt.

In addition,Article 321The “deminimis” entry policy is suspended and e-commerce goods worth less than $800 will be subject to new tariffs and stricter import restrictions. Certain personal communications, donated materials, and travel-related transactions are exempt.

Trade and Economic Impact

The new tariffs do not apply to the DutyDrawback program, goods entering the U.S. Foreign Trade Zone (FTZ) will be entered as “Privileged Foreign Status” and will be subject to payment of applicable tariffs upon departure from the FTZ. U.S. Customs and Border Protection (CBP) will publish further technical guidance, including certification requirements for cargo in transit.

Canada, Mexico and China have all said they will take retaliatory measures against the United States. President Trump responded by saying that the United States may raise tariffs further and even consider imposing global tariffs on the European Union, the BRICS, and key industries such as semiconductors, pharmaceuticals and steel.

Legal Basis and Future Outlook

The government uses the International Emergency Economic Powers Act (IEEPA) as its legal basis, citing national emergencies such as Fentini smuggling and illegal immigration. This practice allows the government to quickly impose tariffs without having to go through traditional trade policy procedures.

Businesses should be prepared for continued uncertainty as tariffs will impact supply chains and shake trade commitments under the US-Mexico-Canada Agreement (USMCA). Trade frictions may escalate further in the coming months.

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Source: https://www.whitecase.com/insight-alert/president-trump-imposes-25-tariffs-canada-and-mexico-and-10-tariffs-china