Client Advisory: U.S. Tariffs on Mexico & Canada Now in Effect – March 4, 2025

WHAT’S THE LATEST

As of March 4, President Trump’s 25% tariffs on goods from Mexico and Canada have officially taken effect. The tariffs were enacted through three signed executive orders on March 3, under the International Emergency Economic Powers Act (IEEPA).

In response, China and Canada have announced retaliatory measures, with Mexico expected to follow suit in the coming days.

WHAT WE KNOW

New U.S. Tariffs:

• Canada: A 25% tariff has been imposed on all Canadian-origin goods, excluding energy or energy resources, which are subject to a 10% tariff.
  • Executive Order: “Amendment to Duties to Address the Flow of Illicit Drugs across our Northern Border”
• Mexico: A 25% tariff has been imposed on all Mexican-origin goods.
  • Executive Order: “Amendment to Duties to Address the Situation at our Southern Border”
• China: Tariffs on certain Chinese imports, initially raised to 10% last month, have now increased in 20%.
  • Executive Order: “Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain In the People’s Republic of China”

Additionally, each executive order reiterates the intention to remove de minimis eligibility for products made from these countries. This eligibility will be rescinded “upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue.”

Retaliatory Actions:

• China: Announced 15% tariffs on chicken, wheat, corn and cotton U.S. imports, with an additional 10% tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products.
• Mexico: Expected to announce retaliatory measures by Sunday, 3/9.
• Canada: Immediately implemented 25% tariffs on more than $20 billion in U.S. imports. 
  • Additional tariffs on $125 billion in U.S. goods will take effect over the next 21 days.
    

SEKO'S GUIDANCE

• Our team is actively monitoring developments day-by-day, ensuring we have the latest information to guide our clients.
• U.S. warehouse space will become a premium – don’t wait until space is gone or disruptions escalate even further to secure what is necessary for your business needs.
• U.S. Importers should ensure that they are enrolled in Customs and Border Protection’s Periodic Monthly Statement program, to allow for the most beneficial payment terms for newly implemented tariffs.
• Schedule an hour of free consulting with our team of experts today to explore how we can keep your supply chain moving smoothly.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.