Additional details are available so we wanted to bring you the latest on the implementation of tariffs on imported goods.
President Trump signed executive orders related to the implementation of new tariffs on Saturday, February 1st. Here are the details:
- 25% tariffs on imports from Canada and Mexico
- 10% tariffs on “energy imports” from Canada. 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)
- 10% tariffs on imports from China
- Tariffs are applied based on merchandise’s country of origin, not the country from which it was shipped
- Applied tariff rates may be increased and the scope of the order expanded if impacted countries issue any retaliation measures
- De minimis entry and duty drawback is not available for Canadian China and Mexico origin
- The International Emergency Economic Powers Act (IEEPA) was used to implement the tariffs
- No product exclusion process has been communicated yet
The tariffs will take effect Tuesday, February 4th at 12:01 a.m. EST, but goods entered for consumption, or withdrawn from warehouse for consumption, after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to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 February 1st will not be impacted.
Because the actions were taken under IEEPA, tariffs apply at the ad valorem rate and are owed in addition to normal duties and any applicable Section 201, 232, and 301 duties or antidumping/countervailing tariffs. The new tariffs also apply to USMCA qualifying merchandise as well as products eligible for specific product exclusions.
Articles, except those eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which are subject to the duties imposed by this order and are admitted into a United States foreign trade zone on or after 12:01 a.m. Eastern Time on February 4th, 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 rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admittance into the United States foreign trade zone.
The details we’ve seen on activities from Mexico, Canada, and China are:
- Mexico: Details will be communicated publicly on Monday, February 3rd
- Canada: 25% tariffs against CA$155 billion of American goods, likely to include clothing, alcohol, fruits and juices among other items
- China: will take “corresponding countermeasures to resolutely safeguard our own rights and interests” and bring a case against the U.S. at the World Trade Organization (WTO)“
Please monitor your bond limits – saturation is a real possibility as the increased tariffs take effect.
We will continue to monitor this situation and will provide you with updates as soon as we have them.
