US:
President Trump signed 3 Executive Orders on the additional tariffs. On Canada to “Address the Flow of Illicit Drugs Across [the] Norther Border,” on Mexico to “Address the Situation at [the] Southern Border,” and on China to “Address the Synthetic Opioid Supply Chain in . . . China.” Also this “fact sheet” from the White House which appears to just be PR material. At a high level it is:
- 25% on all goods from Canada except those for “energy production”.
- 10% on “energy resources”
MEXICO: 25% on all goods from Mexico.This is paused for a month.
- CHINA: 10% on all goods from China and Hong Kong, importantly this is on top of existing 301 penalties. CSMS # 63988468 – GUIDANCE: Additional Duties on Imports from China Also surprise that HK is added, a trading partner with full duty free importing and exporting.
New codes are being added to Chapter 99 to implement these duties. Unfortunately, at this time there are no HS code lists. The exemptions are legal text and not “classifiable”. So the additional penalty will appear on every HS code and shippers will have to read the technical text associated with the exceptions to see if their products could be exempted. From the CSMS Guidance:
All imports of articles that are products of Canada, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13, and 9903.01.14, and other than products for personal use included in accompanied baggage of persons arriving in the United States - an additional ad valorem rate of duty of 25%.
9903.01.13: Imports of energy or energy resources of Canada, as defined in section 8 of Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency) as: crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3) - an additional ad valorem rate of duty of 10%.
For the following products excluded from the additional duties, one of the following HTSUS classifications apply:
9903.01.11: Articles the product of Canada 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.
9903.01.12: Articles the product of Canada 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.
9903.01.14: Except for products described in headings 9903.01.11 and 9903.01.12, and other than products for personal use included in accompanied baggage of persons arriving in the United States, articles the product of Canada that: (1) were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the United States, before 12:01 a.m. Eastern Standard Time on February 1, 2025; and (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on February 4, 2025, and before 12:01 a.m. Eastern Standard Time on February 7, 2025.
CA:
Canada has posted their list of goods to retaliate. They have a few pages on the CBSC site detailing and explaining the situation. ( link1 link2 ) The additional duty is effective Feb 4, but do not apply to goods in transit on February 4th.
We should have our data updated and published today.
MX:
At this time we also have not seen any Department of Finance (DOF) announcements. On Twitter, Claudia Sheinbaum, President of Mexico, just posted this:
“We had a good conversation with President Trump with much respect for our relationship and sovereignty; we reached a series of agreements:
- Mexico will reinforce the northern border with 10,000 National Guard members immediately, to prevent drug trafficking from Mexico to the United States, particularly fentanyl.
- The United States commits to working to prevent the trafficking of high-powered weapons to Mexico.
- Our teams will start working today on two fronts: security and trade.
- Tariffs are paused for one month starting now.
CN:
Again, at this time we do not have any information. It is still the Chinese New Year holiday, and it is less clear what China’s reaction will be.