Background

President Trump issued Feb. 1 executive orders imposing additional tariffs on imports from China, Canada, and Mexico. Importers should be aware of the following details regarding these tariffs.

ST&R offers a three-pronged approach to avoiding, mitigating, and/or recovering these and other tariffs on imported goods.

For more information on the impact of the new tariffs, and which of these strategies might be most effective for your business, please contact ST&R.

Statutory authority – The tariffs were primarily imposed under the International Emergency Economic Powers Act following a declaration of a national emergency with respect to the flow of narcotics and illegal immigrants across U.S. borders.

Tariff rates –  A ten percent tariff will be imposed on products of China as well as energy and energy resources from Canada. A 25 percent tariff will be imposed on imports of all other products of Canada and products of Mexico. These tariffs will be in addition to any other applicable duties, fees, exactions, or charges. 

Further, the tariffs may be increased or expanded if the relevant country retaliates by increasing tariffs on U.S. exports or taking similar measures. Canada has already announced plans to impose a 25 percent tariff on $155 billion worth of imports from the U.S. in two phases. The first phase (to be effective Feb. 4) will cover $30 billion worth of goods, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. The second phase (to be effective after a 21-day comment period) will include passenger vehicles and trucks (including electric vehicles), steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, recreational vehicles, and recreational boats. 

Affected goods – The ten percent tariff on energy imports from Canada will apply to 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.

The ten percent tariff on China, and the 25 percent tariff on Canada and Mexico, will apply to all articles that are products of those countries, as defined in a forthcoming Federal Register notice. There will be limited exceptions for humanitarian donations and informational materials.

There is no mention of a process for excluding specific goods from the tariffs.

Effective date – The tariffs will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Feb. 4. They will remain in effect until the president determines that the relevant country has taken sufficient action to alleviate the crisis.

However, if the importer can certify that its goods were on a vessel or in transit on the final mode of transport by 12:01 a.m. EDT on Feb. 1, and those goods are entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Feb. 4, the goods will not be subject to the tariffs.

De minimis – Duty-free de minimis treatment under 19 USC 1321 will no longer be available for products of China, Canada, or Mexico.

Drawback – No drawback will be available with respect to these tariffs.

FTZs – Articles that are products of China, Canada, or Mexico, except those that are eligible for admission under domestic status, that are subject to these tariffs and are admitted into a U.S. foreign-trade zone on or after 12:01 a.m. EDT on Feb. 4 (with certain exceptions) must be admitted as privileged foreign status. Upon entry for consumption such articles will be subject to the duty rates related to the applicable HTSUS subheading in effect at the time of admittance into the FTZ.

Copyright © 2025 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.

Close

Cookie Consent

We have updated our Privacy Policy relating to our use of cookies on our website and the sharing of information. By continuing to use our website or subscribe to our publications, you agree to the Privacy Policy and Terms & Conditions.