**3/4/25: WE HAVE PUBLISHED AN UPDATED Q&A POST HERE**
On 01 February 2025, President Trump signed an executive order related to the implementation of tariffs on imported goods from China, Mexico, and Canada under the authority of the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), and section 604 of the Trade Act of 1974, as amended.
This situation is fluid and may change. This document will be updated as the conditions evolve.
What are the tariffs that will be implemented?
The tariffs will be levied as follows:
- China and Hong Kong – 10%
- Canada – energy products – 10% – DELAYED
- Canada – all other products – 25% – DELAYED
- Mexico – 25% – DELAYED
When do these supplemental duties go into effect?
Based on the latest information, the tariffs will take effect on 4th February, 2025 for only Chinese and Hong Kong origin goods “entered for consumption or withdrawn from a warehouse for consumption, on or after 12:01 AM EST. “
Goods that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. EST on 01 February 2025 will not be impacted.Why were the tariffs delayed for Canada and Mexico?
On Monday, 3rd Feb 2025, President Trump and Mexican President Claudia Scheinbaum have come to a mutual understanding. Therefore, the administration will delay implementation of the 25% tariffs as negotiations continue. The Mexican President has agreed to immediately supply 10,000 troops to the US/Mexican border to stem the flow of immigrants and/or fentanyl.
Likewise, Canadian Prime Minister has agreed to strengthen border surveillance with new choppers, technology and personnel, and enhanced coordination with the US as well as using increased resources to stop the flow of fentanyl. The Canadian Prime Minister agreed to immediately supply nearly 10,000 frontline personnel to protect the border.
Therefore, the additional tariffs for Canada and Mexico have both been delayed 30 days to gauge their effectiveness.
What products are subject to the supplemental tariffs?
All products with countries of origin China or Hong Kong will be subject to these supplemental duties.
As mentioned above, any goods with a country of origin of Mexico and Canada will continue to be entered as normal for the next 30 days minimum.
Will there be an opportunity for exclusions with these new supplemental tariffs?
The administration has advised that there will be no exclusions from these new supplemental tariffs.
How will the supplemental duties be processed in a customs declaration?
Federal Register Notices have been issued for Canada and China detailing the new HTS that will be used for processing goods from Canada and China.
Our operating system and CBP are not yet ready to process customs declarations with these additional duties. Therefore, if the arrival date is 04 Feb 2025 or later; and the departure date is after 01 Feb 2025, any pre-cleared customs declarations will need to be recalculated and retransmitted once CBP and our software provider complete their programming.
Note: The entry must be presented prior to March 7 to claim an ‘intransit’ exception to these duties.
FRN: Additional Duties on Products of the People’s Republic of China 02-03-2025
For goods with origin China or Hong Kong, the following HTS are to be declared:
The decision for tariffs on Canadian goods was split as 25% for all Canadian goods except for “energy products” that would have only been subject to 10% ex Canada. How are the “energy products” defined?
Energy imports, as defined under section 8 of Executive Order 14156 of January 20th, 2025, include: 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, as defined by 30 U.S.C. 1606 (a)(3).
Are products subject to Sec 201, China Sec 301, and/or Sec 232 also subject to these supplemental duties?
Imported goods with a country-of-origin China will be subject to the normal duty rate plus the 10% supplemental duties and the Sec 301 duties as well.
Imported steel and aluminum goods subject to Sec 232 will be subject to the normal duty rate plus the country-specific supplemental duties and the Sec 232 duties as well.
Imported goods subject to Sec 201 will be subject to the normal duty rate, plus the country-specific supplemental duties and the Sec 201 duties as well.
Are goods subject to Anti-Dumping and/or Countervailing duties also subject to these supplemental duties?
Imported goods that are subject to Anti-Dumping and/or Countervailing duties will also be assessed the supplemental duties.
What about goods eligible under Chapter 98 HTS?
The additional duties imposed by heading 9903.01.20 (China) or 9903.01.10 (Canada) shall not apply to goods for which entry is properly claimed under a provision of chapter 98, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60.
For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of the repairs, alterations, or processing performed (in China and Hong Kong or Canada), as described.
For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in China and Hong Kong or Canada), less the cost or value of such products of the United States, as described.
Are goods entered into an FTZ subject to these supplemental duties?
Articles that are products of Canada or China and/or Hong Kong, excluding those encompassed by 50 U.S.C. 1702(b), except those that are eligible for admission to a foreign trade zone under domestic status as defined in 19 CFR 146.43, and are admitted into a United States foreign trade zone on or after 12:01 AM EST on 04 Feb 2025, must be admitted as privileged foreign status as defined in 19 CFR 146.41.
Such articles will be subject, upon entry for consumption, to the duties in effect at the time of admission into the United States foreign trade zone.
Are these supplemental duties eligible for Drawback?
Supplemental duties paid because of this action are not eligible for refunds under the Drawback program.
What does this mean for products eligible for USMCA?
Products eligible under USMCA will still be eligible for USMCA, however, even with the reduced duty treatment under USMCA, there will be a supplemental duty of 25%.
What happens to the De Minimis shipments?
Imported products with a country of origin of China or Hong Kong will no longer be eligible under the De Minimis provision under 19 USC 1321 regardless of their value.
Will Canada, Mexico, and/or China respond with retaliatory tariffs?
As negotiations continue between the US and the three countries, each country has started crafting their own response.
The Chinese government has already announced their own retaliatory measures:
- 15% import tax on US coal and liquified natural gas
- 10% import tax on crude oil, agricultural machinery, and some vehicles
