Possible delay on the Canadian and Mexican tariffs
According to whitehouse.gov, President Trump today announced adjustments to tariffs imposed on Canada and Mexico. We have not seen anything from US Customs yet, but we will post the guidance when it becomes available.
Below is a section from the Executive Order posted on whitehouse.gov that may shed some light on the matter.
“Sec. 2. Product Coverage. (a) Articles that are entered free of duty as a good of Canada under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada, shall not be subject to the additional ad valorem rate of duty described in section 2(a) or section 2(b) of Executive Order 14193.
(b) The additional rate of duty on potash that is not subject to subsection (a) of this section shall be reduced to 10 percent in lieu of 25 percent.
(c) The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.”
We take the underlined section to mean that the changes will only take affect at 12:01 a.m. EST March 7, 2025 (9:01 p.m. PST tonight March 6, 2025). There is no mention of how goods entered into the US from 3/4 – 3/6 will be treated.
In both cases (Canada and Mexico) the tariffs do not apply to those goods that are eligible for USMCA preference (T-MEC for Mexico) provided they are properly listed on a USCMA Certificate of Origin that has been transmitted to your broker. If your product does not satisfy the USMCA Rules of Origin, they they are still subject to the 25% tariff. This delay will last until April 2, 2025.
Again, we will post new information as it becomes available.
