It has been another chaotic week in tariff news, as new duties began on Mexico, Canada, and China. Several other tariff announcements were made, as well. Here is the latest information available on the key areas importers should be watching.
Noteworthy is that in an address to Congress on Tuesday, Trump said further tariffs would follow on April 2, including "reciprocal tariffs" and non-tariff actions aimed balancing out years of trade imbalances. He cited high duties imposed on U.S. goods by India, South Korea, the European Union, China and others.
China:
An extra 10% tariff on goods from China took effect this week, adding to a 10% tariff imposed on February 4 and adding to duties of up to 25% imposed on imports during the President’s first term.
China responded by announcing additional tariffs of 10%-15% on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. companies.
Mexico and Canada:
The previously suspended 25% tariffs on Mexico and Canada started on Tuesday, with an amendment going into effect a 12:01 am today. Here is a link to the announcement.
Important details of the amendment:
Any Mexican or Canadian origin goods that qualify for free entry under the USMCA will NOT be subject to the additional 25% duties and no end date was given for the exemption. Potash that does not qualify for duty free treatment under the USMCA will be subject to a 10% duty (in lieu of the 25% duty.
Be aware that the exemption is not retroactive, so goods imported since Tuesday are subject to tariffs. Also note, there is no Federal Register notice published yet which may contain additional clarifying information.
Canada has added retaliatory tariffs on specific US goods, with more promised in the coming weeks. Mexico has indicated tariffs are coming but has not given specifics.
All this tariff news is in addition to specific action taken by the US related to steel and aluminum imports. Transmodal has published more information on those commodity-specific tariffs - click here.
The tariff situation between the US and China, Mexico, and Canada remains extremely dynamic. We will continue to update with more information as it becomes available.