Background

President Trump issued Feb. 3 executive orders suspending until March 4 the imposition of 25 percent tariffs on imports from Canada and Mexico and a 10 percent tariff on imports of energy products from Canada, all of which had been slated to take effect Feb. 4.

The EOs said that the tariffs were delayed due to the “immediate steps” the two countries have agreed to take “to alleviate the illegal migration and illicit drug crises” and that the month-long pause will give the U.S. time to assess whether these measures are sufficient. However, in a social media post President Trump referred to efforts to negotiate “a final economic deal” with Canada during this period, though no further details were given.

The EOs noted that if the crises worsen and the governments of Canada and Mexico fail to take sufficient steps to alleviate them, President Trump will take the necessary steps to address that situation, including by immediate implementation of the tariffs.

Although the tariffs are suspended for now, the possibility that they will be imposed remains. If that happens, both Canada and Mexico are expected to retaliate with tariffs on U.S. goods.

ST&R offers a three-pronged approach to avoiding, mitigating, and/or recovering these and other tariffs. For more information on which of these strategies might be most effective for your business, please contact ST&R.

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