On March 4th, 2025, the U.S. government implemented new tariffs on imports from Mexico and Canada under the International Emergency Economic Powers Act, alongside increased tariffs on Chinese goods.
Most products imported from Mexico and Canada are now subject to a 25% tariff, while Canadian energy products face a 10% tariff. Exemptions include personal-use goods, certain Chapter 98 HTSUS entries, humanitarian donations, and informational materials. Additionally, goods in transit are not exempt, and no duty drawback is available for these tariffs.
Imports from Mexico or Canada entering a Foreign Trade Zones after March 4 must be designated as Privileged Foreign Status and will be subject to the duty rate at the time of Foreign Trade Zones admission. Meanwhile, a February 1st Executive Order has raised tariffs on Chinese imports from 10% to 20%, applied retroactively.
Goods in transit before February 1st may qualify for a limited exemption until March 7th. Further, as of March 12th, a 25% tariff will apply to steel and aluminum imports, including newly classified derivative products, while Russian-origin aluminum will face a 200% tariff with no Chapter 98 exemptions. For further guidance on how these changes impact your shipments, please contact your local Radius International representative.
