The U.S. government has announced significant updates to tariff policies affecting imports from Mexico, Canada, China, and the steel and aluminum industries.
Effective March 4, 2025, a 25% tariff will be assessed on products originating from Mexico and Canada, with specific exclusions and exemptions outlined for personal goods, donations, and certain goods under Chapter 98 HTSUS. Additionally, energy products from Canada will be subject to a reduced 10% duty.
In response to growing concerns over foreign trade, the U.S. has also amended its Executive Order from February 1, 2025, to increase the tariff on Chinese products from 10% to 20%, impacting goods entering the U.S. on or after March 4.
Steel and aluminum imports will also face new tariffs, with specific details for derivative products provided in updated Federal Register notices scheduled for publication on March 5, 2025.
In response to these announcements,
Canada has announced increased tariffs on a long list of items that can be found here.
China has announced 10-15% increases in import duties on several key American agricultural and food products and expanded export controls on 15 U.S. firms. China’s finance ministry has indicated an additional 15% tariff will on U.S. chicken, wheat, corn and cotton, while soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports will face an additional 10%, both of which will go into effect on March 10. More information can be found here.
Mexico has advised that information is to come regarding any increases.
Below is the comprehensive breakdown along with links to the Federal Register and the CSMS site pertaining this information.
Mexico/Canada
The Federal Register notices implementing the IEEPA 25% tariffs on Mexico and Canada were released.
Effective12:01 a.m. ET, March 4, tariffs of 25% will be assessed on products of Canada or Mexico entering the U.S.; except for energy products from Canada which will be assessed a 10% duty.
Note that the tariffs apply to “products of Mexico/Canada”.
Products Excluded from Additional Tariff:
1. Goods that are for personal use.
2. Goods entered under Chapter 98 HTSUS including:
· 9802.00.40or 9802.00.50 (repairs/alterations) tariffs apply on value added in Mexico/Canada
· 9802.00.60(metal articles processed abroad) tariffs apply on value added in Mexico/Canada
· 9802.00.80(assembly of US components) tariffs apply on value added in Mexico/Canada
· 9801 goods exported from the US and returned from Mexico/Canada not subject (even if Mexico/Canada origin)
· Other Chapter 98 goods are excluded
3. Donations of food, clothing and medicine intended to relieve human suffering (claim HTSUS9903.01.02 for the exemption for Mexico and 9903.01.11 for the exemption for Canada)
4. Merely informational materials (claim HTSUS 9903.01.03 for the exemption for Mexico and 9903.01.12 for the exemption for Canada)
No drawback is allowed for these tariffs. Duty drawback is allowed for other eligible duties paid. There is no grace period for goods in transit.
Section 321 de minimis goods are not impacted until such time as Commerce establishes a system to collect the tariffs.
FTZGoods
Products of Mexico/Canada admitted to an FTZ after 12:01 a.m. ET on March 4 must be admitted in privileged foreign status. Upon entry for consumption into the U.S., they will be subject to the rate of duty in effect at the time of admission into the zone.
Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs
China
The President amended his prior Executive Order issued on Feb. 1 increasing the tariff from an additional 10% to 20%.
For products entered or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on March 4, the additional duty will be 20% and should use HTS 9903.01.24 (other than products classifiable under 9903.01.21 (donations), 9903.01.22 (informational materials) and 9903.01.23 (grace period until March 7 for goods “loaded onto a vessel / in transit” prior to February 1) and personal use goods.
A grace period for Goods in transit may allow the goods to be exempted from the tariff until March 7 if:
Goods loaded on a vessel or in transit on the final mode of transport prior to 12:01 a.m. ET on Feb. 1, 2025, even if they were entered or withdrawn from warehouse for consumption after Feb. 4 will not pay the additional tariffs, but only until 12:01 a.m. ET on March 7. Entry after that date will require payment of the duties.
Claim HTSUS 9903.01.23 for the exemption.
Steel/Aluminum
The Federal Register notices on Steel and Aluminum will be published on March 5. They are available today for review prior to the official posting.
Steel
1. March 12 is the effective date for 25% tariffs on the original steel products and derivatives plus the NEW list of derivative products classified in HTS Chapter 73.
2. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in HTS Chapter 73 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those products. The additional duty shall only apply to the declared value of the steel content of the derivative article. The quantity of the steel content shall be reported in KG.
3. All Imports of derivative products shall provide any information that may be required by CBP to permit administration of the duties.
4. A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from steel articles that were melted and poured in the U.S. N.B. this same exemption does not apply to steel articles and derivatives on the ORIGINAL lists.
Aluminum
1. March 12 is the effective date for 25% tariffs on the ORIGINAL aluminum products and derivatives plus the NEW list of derivative products classified in HTS Chapter 76.
2. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in HTS Chapter 76 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those products. The additional duty shall only apply to the declared value of the aluminum content of the derivative article. The quantity of the aluminum content shall be reported in KG.
3. Note that importers are required to report to CBP the primary country of smelt, secondary country of smelt, and country of cast on imports of all aluminum articles subject to the aluminum and aluminum derivatives Section 232 measures. In addition, all Imports of derivative products shall provide any information that may be required by CBP to permit administration of the duties.
4. A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from aluminum articles that weres melted and cast in the U.S. N.B. this same exemption does not apply to aluminum articles and derivatives on the ORIGINAL lists.
5. If the products are from Russia, or any amount of primary aluminum use to make the article is smelted in Russia or cast in Russia, it is subject to 200% tariffs. In addition, the same exemptions under HTS Chapter 98 do not apply the same way as to other origin goods.
Please find the below PDF links to the National Register:
2025-03664.pdf - Canada Tariff
2025-03665.pdf - Mexico Tariff
2025-03677.pdf - China Tariff
2025-03596.pdf - Aluminum
2025-03598.pdf - Steel
Clickhere to read the relevant new CSMS notice clarifying the additional 20% on China effective date to this email.
Please follow IFF’s dedicated Tariffs blog page Tariff Updates for continuous updates on this and all tariff related news.