On February 1, 2025, President Trump signed three executive orders imposing new tariffs on imports from Canada, Mexico, and China, with the tariffs set to take effect on February 4, 2025. The tariffs will be 25% on goods from Canada and Mexico, and 10% on goods from China. The new tariff rates will apply to products entering the U.S. for consumption or being withdrawn from warehouses starting at 12:01 AM Eastern Standard Time on February 4. However, goods already in transit—those loaded onto their final mode of transport before February 1, 2025—will be exempt from these tariffs.

In addition, the executive orders suspend the Section 321 customs de minimis entry process, which previously allowed shipments valued under $800 to avoid certain duties.

These tariffs are set to remain in effect indefinitely, though there is the possibility of further increases if the affected countries retaliate, a response that these countries have already indicated they may pursue. The orders also give the president the power to raise tariffs in response to any such retaliation. The tariffs will apply to all merchandise imported for consumption, though there are provisions for Canadian energy resources and exemptions for specific personal, travel, charity, and media-related items. It remains unclear if any additional exemptions will be granted, similar to those made during President Trump’s previous tariff actions on China.

For Canadian imports, most products will face a 25% tariff, while energy resources will be subject to a 10% tariff, with the potential for future increases. All imports from Mexico will be charged a 25% tariff, and China will face a 10% tariff. The new tariffs on China will be added to any existing tariffs already in place.

The executive orders also affect U.S. Foreign Trade Zones, requiring affected goods to be admitted under “privileged foreign status,” meaning they will be subject to the applicable duty rates when entering for consumption.

*Disclaimer: The articles provided reflect our perspective and are created by our employees. They do not constitute legal documents or comprehensive information. For further inquiries, please contact our staff for additional details.