Canada, Mexico, and China Tariff Updates: What You Need To Know
At 12:01 AM this morning, Tuesday, March 4, 2025, tariffs on Mexico and Canada came into effect in full force. Additionally, the tariffs on China were amended on Monday, March 3. Here’s what you need to know about the changes:
Mexico
Goods entered or withdrawn for consumption after 12:01 AM on March 4, 2025 will be classified under HTSUS 9903.01.01 and will be subject to an additional 25% ad valorem duty. This duty is in addition to other duties, taxes, fees, and charges. This duty applies even to goods that are entitled to special tariff treatment under the United States-Mexico-Canada Agreement.
Mexican origin donations by persons subject to U.S. jurisdiction are excluded from the additional tariff, and will be classified under HTSUS 9903.01.02.
Mexican origin informational materials are similarly excluded from the additional duty, and will be classified under HTSUS 9903.01.03.
Canada
Goods entered or withdrawn for consumption after 12:01 AM on March 4, 2025 will be classified under HTSUS 9903.01.10 and will be subject to an additional 25% ad valorem duty. This duty is in addition to other duties, taxes, fees, and charges. This duty applies even to goods that are entitled to special tariff treatment under the United States-Mexico-Canada Agreement.
Energy and energy resources will be classified under 9903.01.13 instead and will be subject to an additional 10% ad valorem duty. This duty is in addition to other duties, taxes, fees, and charges. This duty applies even to goods that are entitled to special tariff treatment under the United States-Mexico-Canada Agreement.
Canadian origin donations by persons subject to U.S. jurisdiction are excluded from the additional tariff, and will be classified under HTSUS 9903.01.11.
Canadian origin informational materials are similarly excluded from the additional duty, and will be classified under HTSUS 9903.01.12.
China
The tariff imposed by Executive Order 14195 on February 1, 2025 has been increased from 10% to 20%.
Conclusion
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.