The latest tariff changes impose significant financial and logistical challenges for importers and exporters dealing with Mexico, Canada, and China.
Mexico & Canada: As of March 4, 2025, a 25% tariff applies to most products from these countries entering the U.S., with a 10% duty on energy products from Canada. Exemptions include personal-use goods, specific Chapter 98 HTSUS entries, humanitarian donations, and informational materials. No drawback is allowed, and there is no grace period for goods in transit. FTZ goods must be entered under privileged foreign status, making them subject to the duties.
China: The updated executive order increases tariffs from 10% to 20% retroactively on goods entered since February 4. Importers will need to reconcile these costs, except for items that were in transit before February 1, which are temporarily exempt until March 7.
Steel & Aluminum: New 25% tariffs on additional derivative steel and aluminum products take effect on March 12, with further implementation details pending. Products processed from U.S.-origin materials may be exempt, but those involving Russian aluminum will face 200% tariffs.
These measures aim to increase trade pressure but are already triggering retaliatory tariffs from Canada and China, impacting U.S. exports. To manage increased costs effectively, importers should evaluate duty payment options, particularly ACH Periodic Monthly Statement (PMS).
New Tariff Updates: What Importers Need to Know About China, Mexico, and Canada in 2025
The latest tariff changes are shaking up trade between the U.S. and key partners—Mexico, Canada, and China. With steep increases taking effect, importers and exporters must adjust quickly to avoid unexpected costs and disruptions. Here’s what you need to know about these newly imposed duties and how they could impact your business.
Mexico & Canada: 25% Tariffs Now in Effect
As of March 4, 2025, the U.S. has implemented a 25% tariff on most imports from Mexico and Canada, with a notable exception for energy products from Canada, which face a 10% tariff instead. These tariffs apply broadly to goods originating from these countries, not just those shipped through them.
Exemptions to the New Tariffs
Despite the sweeping nature of these duties, there are some key exemptions:
- Personal-use goods
- Certain Chapter 98 HTSUS entries, including:
- Repairs, alterations, and metal articles processed abroad (tariffs apply only on the value added in Mexico/Canada).
- Assembly of U.S. components processed in China and Hong Kong.
- Goods exported from the U.S. and returned from Mexico/Canada (even if they qualify as Mexico/Canada origin).
- Humanitarian donations of food, clothing, and medicine.
- Informational materials such as books and reports.
Importantly, no duty drawback is allowed for these tariffs, meaning importers cannot reclaim paid duties under standard drawback programs. Additionally, there is no grace period for goods already in transit, making immediate compliance crucial.
For Foreign Trade Zone (FTZ) shipments, any Mexican or Canadian goods admitted after March 4, 2025, must be classified under privileged foreign status, ensuring they are subject to the applicable duties upon entry for U.S. consumption. However, goods entering an FTZ under domestic status will be exempt from these tariffs.
China: A Retroactive Tariff Increase Hits Importers
In a significant shift, the China tariff has been increased from 10% to 20%, effective February 4, 2025. However, the adjustment is retroactive, meaning importers must pay the additional 10% on all affected U.S. shipments since February 4.
Temporary Exemption for Goods in Transit
To ease the burden, the government has exempted goods that were already in transit before February 1, provided they arrive by March 7. After that, all imports from China will be subject to the full 20% duty.
Additional duties must be collected for importers who have already paid the 10% tariff, creating administrative and financial strain. Customs brokers and logistics professionals will need to assist clients in reconciling these unexpected costs.
There’s a new 20% tariff (HTS 9903.01.24) on China/Hong Kong goods, effective March 4, 2025 and we know the numbers can get complicated. We’ve created a handy list to help you understand:
- There was already a 10% tariff (HTS 9903.01.20) in place.
- Now, they stack together, so the total additional duty on imports from China/Hong Kong is 30% (10% + 20%).
- These tariffs are in addition to any other duties (such as antidumping, countervailing duties, taxes, or fees).
- Even if a product was previously exempt from the 10% duty under 9903.01.23 until March 6, the new 20% tariff (9903.01.24) still applies.
What This Means:
If you were planning on avoiding the original 10% tariff using an exemption, that exemption won’t help you dodge the new 20% tariff. You’re still paying more as of today.
Bottom Line:
Effective March 4, 2025, all applicable China/Hong Kong goods will be subject to 30% additional tariffs—there is no way around it. Even if your goods were temporarily exempt from the original 10% duty, they will still be subject to the new 20%.
Steel & Aluminum: Additional Tariffs Take Effect March 12
The Section 232 steel and aluminum tariffs are also seeing expansion. Effective March 12, a 25% duty applies to:
- Original steel and aluminum products
- A newly listed set of derivative products (classified in HTS Chapters 73 and 76).
Exemptions and Special Considerations
A duty exemption applies for steel and aluminum derivatives if the product was processed in a third country from U.S.-origin steel or aluminum. However, this exemption does not apply to the original list of tariffed products.
Additionally, if any part of an aluminum product was smelted or cast in Russia, a 200% tariff will be imposed. Importers must now provide additional documentation to Customs and Border Protection (CBP), including details on the primary country of smelt, secondary country of smelt, and country of cast.
What This Means for Importers & Next Steps
The sudden tariff increases will significantly raise costs for U.S. businesses reliant on imports from Mexico, Canada, and China. Compounding this, Canada and China have already announced retaliatory measures, further escalating trade tensions.
To mitigate risk, importers should consider the following:
- Reevaluate sourcing strategies to identify alternative suppliers in non-tariffed countries.
- Take advantage of FTZs and bonded warehouses to delay duty payments.
- Encourage clients to pay duties directly to CBP via ACH Periodic Monthly Statement (PMS) to streamline compliance and cash flow.
- Ensure all import documentation is accurate, especially for steel and aluminum products requiring country-of-origin disclosures.
These tariff updates are part of a broader economic strategy, but for businesses, they represent a major financial and logistical challenge. The best way to navigate these shifting regulations is to stay ahead of the changes and work with an experienced logistics provider like Coppersmith Global Logistics.
Need Help Managing Tariff Changes?
At Coppersmith Global Logistics, we specialize in customs compliance, duty optimization, and international trade solutions. If your business is affected by these tariff changes, contact us today to discuss strategies for minimizing your exposure and ensuring supply chain efficiency.
