On February 1, 2025, President Trump issued three executive orders imposing new tariffs on imports from Canada, Mexico, and China, set to take effect on February 4, 2025. These tariffs will be 25% on goods from Canada and Mexico, and 10% on goods from China. The new rates apply to products entering the U.S. for consumption or being withdrawn from warehouses starting at 12:01 AM Eastern Standard Time on February 4th. However, goods that are already in transit, having been loaded onto their final mode of transport before February 1, 2025, will be exempt.

Additionally, the orders suspend the Section 321 customs de minimis entry process, which previously allowed shipments valued under $800 to bypass certain duties.

These tariffs are set to remain in place indefinitely, with the possibility of further increases if the affected countries retaliate—something they have already signaled they intend to do. The orders give the president the authority to raise tariffs in response to such retaliation. The new tariffs cover all merchandise imported for consumption, but there are specific provisions for Canadian energy resources and exemptions for certain personal, travel, charity, and media-related products. It remains unclear whether any further exemptions will be granted, similar to those during President Trump’s previous tariff actions on China.

For Canada, most imports will face a 25% tariff, while energy resources will be subject to a 10% tariff, with the potential for increases in mid-February. Mexico will see a 25% tariff on all imports, and China will be charged a 10% tariff. The China tariffs are in addition to any current tariffs that are in place. Goods from Hong Kong or Macau are not subject to these new tariffs. The orders also impact U.S. Foreign Trade Zones, requiring affected goods to be admitted under “privileged foreign status,” meaning they will be subject to the applicable duty rates upon entry for consumption.

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