What to Know About New Tariffs on Goods from Canada, Mexico, China
Published on by Lauren Huster in International Business, Manufacturing, Transportation / Logistics, Wholesale / Distribution
Note: The information in this blog is accurate as of 1:00 PM ET on March 5, 2025. We will continue to monitor news out of Washington and will update as information becomes available.
Update 3: As of Thursday, March 6, 2025, President Trump has announced that Canadian and Mexican tariffs will be delayed until April 2, 2025 for any products covered under the United States-Mexico-Canada (USMCA) Agreement. According to a White House official, this covers about 38% of Canadian imports and 50 % of Mexican imports.
Update 2: As of Wednesday, March 5, 2025, President Trump is granting a one-month exemption on the new Canadian and Mexican tariffs for U.S. Automakers.
Update: As of Wednesday, March 5, the White House is exempting automakers from newly imposed tariffs on Mexico and Canada for one month, following pleas from industry leaders.
Effective Tuesday March 4, 2025, the White House implemented the following U.S. tariffs under the International Emergency Economic Powers Act (IEEPA):
- 25% additional tariffs on imports from Canada
- An exception of only a 10% additional tariff on certain Canadian energy products
- 25% additional tariffs on imports from Mexico
- 20% additional tariffs on imports from China (This is increased from the 10% originally placed in February 2025)
These tariffs were originally announced on February 1, 2025, but the Canadian and Mexican tariffs were put on hold for one month.
Current Canadian tariffs
Effective March 4, 2025, the Department of Finance Canada is imposing 25% tariffs on $30 billion in goods imported from the U.S. that are considered as originating from the U.S. The Canadian tariffs are said to remain in place until the U.S. eliminates Canadian tariffs.
A full list of items subject to tariffs will be listed by Canada can be found on the Government of Canada’s website. Some of the major imports affected by this tariff include beer, wine, fruits, vegetables, perfumes, clothing, footwear, steel, beef, pork, dairy, household appliances, sporting goods, and furniture.
Impending Mexican tariffs
Mexico has announced it will implement counter-tariffs on Sunday, March 9, 2025.
Impending Chinese tariffs
China’s Ministry of Finance announced retaliatory tariffs of up to 15% on some U.S. goods. The effective date of these tariffs is expected to be Monday, March 10, 2025. In addition, China updated their complaint with the World Trade Organization (WTO) regarding the US tariffs put into place as of Tuesday, March 4, 2025.
What’s next
Per Bloomberg, the White House is discussing delaying tariffs on automobiles from Mexico and Canada by one month. President Trump has indicated plans to speak to Mexican President Claudia Sheinbaum, and Canadian Prime Minister Justin Trudeau.
Per the National Association of Foreign Trade Zones (NAFTZ), there is a recommendation for U.S. companies to review on-hand foreign trade zone inventory to see if there is an opportunity to have inventory moved to Privileged Foreign Status (PF Status). PF Status allows foreign trade zone inventory to be classified and appraised with duties as the status is elected instead of when shipped out for consumption. This could provide an opportunity to pay lower tariff rates on such inventory.
Talk to us
If you have questions on the impact of tariffs, the Barnes Dennig team of top international tax pros, contact us today. We will continue to publish updates about the upcoming Tariffs. To stay up-to-date, subscribe to our newsletter. As always, we’re here to help.
