Trump Imposes Tariffs on China, Canada, and Mexico

February 3, 2025

The U.S.-initiated tariff war has officially begun, as President Trump issued Executive Orders imposing tariffs on Canada, China, and Mexico, that go into effect at 12:01 a.m. (ET) on 2/4/25.

  • 25% tariffs on all products of Canada; with the exception of a 10% tariff on Canadian “energy or energy resources” defined as crude oil, natural gas, lease condensates, natural liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals defined by 30 U.S.C 1606 (a)(3) (Source: ST&R Trade Advisory via the National Customs Brokers & Forwarders Association of America, Inc.)
  • 25% tariffs on all products of Mexico (pending new 30-day extension noted below)
  • 10% tariffs on all products of China

Information international shippers should be aware of:

  • The term “products of” Canada, Mexico, and China will be further defined via a Federal Register notice from the Department of Homeland Security
  • Let your Customs Broker(s) know if you can verify that your goods “were on the vessel or in transit on the final mode of transport by 12:01 a.m. ET on 2/1/25 and they are entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. ET 2/4/25, the goods will not be subject to the tariffs” (Source: ST&R Trade Advisory via the National Customs Brokers & Forwarders Association of America, Inc.)
  • Discuss with your Customs Broker(s) if you believe your goods qualify as energy or energy resources, as there is documentation that may be necessary to claim a lower duty rate
  • There will be no duty drawback allowed for the additional duties paid
  • There will be no section 321/de minimis (less than $800) shipments allowed for products of Canada, Mexico, or China (Importers who have de minimis shipments should consult with their Customs Broker(s) to establish the best way to handle their small package shipments out of Canada and China since they are no longer eligible for de minimis entry)
  • There is no mention at this point of an exclusion process

Counteraction:

As of this writing, the following activity has taken place:

Links to U.S. Customs and Border Protection “Guidance” Documents:

CSMS # 63988468 – GUIDANCE: Additional Duties on Imports from China

CSMS # 63988467 – GUIDANCE: Additional Duties on Imports from Canada

To eShipping Customers:

eShipping’s role is to support you during this uncertain and challenging situation. And with news and developments occurring rapidly, we will limit all-customer email communication to major milestones as this continues to unfold. Please reach out to your account manager with questions.