White House announces adjustments to tariffs on imports from Canada and Mexico

The White House today announced adjustments to tariffs imposed on imports from Canada and Mexico in recognition of the structure of the automotive supply chain and in order to minimize disruption to the U.S. automotive industry.

According to the White House fact sheet, the adjusted tariffs are now:

• A 25% tariff on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
• A lower 10% tariff on energy products imported from Canada that fall outside the USMCA preference.
• A lower 10% tariff on potash imported from Canada and Mexico that fall outside the USMCA preference.
• No tariffs on goods from Canada and Mexico that qualify for USMCA preference.

The accompanying executive orders clarify that the adjusted tariffs apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM EST on March 7, 2025.

• Concerning Canadian imports: Read the executive order and CBP notice modifying the Harmonized Tariff Schedule of the United States (HTSUS) 
• Concerning Mexican imports: Read the executive order and CBP notice modifying the HTSUS 

Background

Tariffs on Canada and Mexico under the International Emergency Economic Powers Act (IEEPA) went into effect on March 4, 2025. The tariffs are designed to curb the flow of illegal border crossings and drugs into the United States. Read TradeNewsFlash