[co-author: Sherry Mathews]
This article is an update to the March 2025 article “U.S. Imposes 25% Duty on Imports from Mexico and Canada Effective March 4, 2025.”
Within 48 hours of announcing 25% tariffs on imports of Mexico and most imports of Canada (with a lower rate for certain energy related imports), the U.S. largely reversed course Thursday afternoon and announced goods eligible for treatment under the 2020 United States-Mexico-Canada Agreement (“USMCA”) could enter the United States duty free until April 2, 2025. Imports of potash that are not subject to USMCA will be subject to a 10% rate of duty, instead of a 25% rate of duty. These changes are effective for qualifying goods entering on or after March 7, 2025, at 12:01 a.m. eastern standard time and come after the United States also announced a one-month exemption for certain automobiles that comply with the requirements of the USMCA.
Additionally, on March 6, 2025, the U.S. announced a further 10% tariff on all imports of China. This 10% increase is in addition to the 10% increase on all imports from China that went into effect on February 4, 2025. The result is all imports of China are now subject to a 20% tariff.
Businesses should be aware that the current tariff environment will likely change further with a 25% tariff on steel and aluminum expected on March 12, 2025, and other tariffs now being threatened to take effect on April 2, 2025. These potential future U.S. tariffs could be on foreign agricultural products and foreign made cars, though no specific implementing language has yet been issued.
