International

The 25% tariffs on most Canadian & Mexican imports took effect at 12:01 a.m. ET on March 4, 2025, following a one-month delay for both countries to address border security concerns. Not long after the tariffs went into effect, the U.S. administration issued a pause on imposing the additional 25% tariffs on vehicles and vehicle parts from Mexico and Canada that meet the requirements of the United States Mexico Canada Agreement (USMCA).
Canada 
The 25% tariff is imposed on imports from Canada except imports of energy and energy resources. An additional 10% duty will be applied to imports of energy and energy resources such as crude oil, natural gas, lease condensates, coal, and critical minerals.
Mexico

Effective 3/4/25 an additional 25% tariff is imposed on imports from Mexico. 

Both Canada and Mexico have responded with actions of their own. Canada will implement 25% tariffs on most Canadian goods immediately and Mexico will release a retaliatory tariff plan on Sunday.

Canada & Mexico Additional Information
Drawback is not available regarding the additional duties. De minimis shipments (valued at $800 or less) are currently exempt from the additional tariffs until the new administration has “adequate systems in place” to collect the additional duties.

  • The additional duties also apply to imports:
    • Eligible for special duty treatment under the United States Mexico Canada Agreement (USMCA).
    • Eligible for a temporary duty reduction or exemption listed in HTSUS subchapter II of chapter 99.
    • Goods for which Canada or Mexico was the last country of substantial transformation before import to the US.
  • Exclusions:
    • Products of Canada or Mexico that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering.
    • Products of Canada or Mexico that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.

China
The 20% tariffs on Chinese imports also went into effect at 12:01 a.m. ET on March 4, 2025. Beijing will implement additional tariffs of up to 15% on U.S. agriculture products that will go into effect next week on March 10th. 10% will be applied to items including soybeans, pork and beef and 15% will be applied to chicken, wheat, corn and cotton.

We Are Here to Help
Our Mallory Alexander team is here to help with tariff changes by coming up with customized tariff solutions and assessing cross-border strategies. Please contact your Mallory Alexander customer service representative or sales account executive with any questions.

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