We’ve updated our Q&A based on the implementation of an addition 10% tariff on products from China, and 25% tariff on products from Canada and Mexico.
On 01 February 2025, President Trump signed an executive order related to the implementation of tariffs on imported goods from China, Mexico, and Canada under the authority of the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), and section 604 of the Trade Act of 1974, as amended.
This situation is fluid and may change. This document will be updated as the conditions evolve.
What are the tariffs that will be implemented?
The tariffs will be levied as follows:
| Country / Commodity | Supplemental Tariff |
| China and Hong Kong | 20% |
| Canada – energy products | 10% |
| Canada – all other products | 25% |
| Mexico | 25% |
When do these supplemental duties go into effect for China and Hong Kong?
Based on the latest information, the tariffs will take effect on 04 February 2025 for only Chinese and Hong Kong origin goods “entered for consumption or withdrawn from a warehouse for consumption, on or after 12:01 AM EST. “
Goods that 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. EST on 01 February 2025 will not be impacted by the duties for China / Hong Kong.
As per the Executive Order issued by the administration on 03 Mar 2025, the supplemental tariff increased from 10% to 20% effective 04 Mar 2025.
Why were the tariffs delayed for Canada and Mexico now implemented?
While Mexican President Claudia Scheinbaum and Canadian Prime Minister Justin Trudeau have implemented significant efforts to stem the flow of immigrants and/or fentanyl, the administration is not satisfied with the results and, therefore, has issued Executive Orders to implement supplemental tariffs for Canada and Mexico-origin goods effective 04 Mar 2025.
Executive Order – Canada Tariffs
Executive Order – Mexican Tariffs
What products are subject to the supplemental tariffs?
All products with countries of origin China, Hong Kong, Canada, or Mexico will be subject to these supplemental duties.
Will there be an opportunity for exclusions with these new supplemental tariffs?
The administration has advised that there will be no exclusions from these new supplemental tariffs until 2026 at the earliest.
How will the supplemental duties be processed in a customs declaration?
A Federal Register Notice has been issued for China detailing the new HTS that will be used for processing goods from China.
Note: The entry must be presented prior to March 3rd to claim an ‘intransit’ exception to the duties applicable to China and Hong Kong.
FRN: Additional Duties on Products of the People’s Republic of China 02-03-2025
For goods with origin China or Hong Kong, the following HTS are to be declared:
| Country of origin | Additional HTS | Description of goods | Supplemental Duty Rate |
| China or Hong Kong | 9903.01.20 | Articles the product of China and Hong Kong except those listed in 9903.01.21, 9903.01.22 and 9903.01.23 (entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 4, 2025, through March 3, 2025) | 10% |
| China or Hong Kong | 9903.01.21 | Articles the product of China and Hong Kong 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. | No supplemental duty |
| China or Hong Kong | 9903.01.22 | Articles the product of China and Hong Kong 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. | No supplemental duty |
| China or Hong Kong | 9903.01.23 | Articles the product of China and Hong Kong 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 AM. EST on Feb 1, 2025; and (2) are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM EST on Feb 4, 2025, and before 12:01 AM EST on Mar 7, 2025. | No supplemental duty |
| China or Hong Kong | 9903.01.24 | All imports of articles that are products of China and Hong Kong, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, and other than products for personal use included in accompanied baggage of persons arriving in the United States | 20% |
For goods with origin Canada, the following HTS are to be declared:
| Country of origin | Additional HTS | Description of goods | Supplemental Duty Rate |
| Canada | 9903.01.10 | All imports of articles that are products of Canada, other than products classifiable under headings 9903.01.11, 9903.01.12, and 9903.01.13, and other than products for personal use included in accompanied baggage of persons arriving in the United States | 25% |
| Canada | 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. | No supplemental duty |
| Canada | 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. | No supplemental duty |
| Canada | 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) | 10% |
For goods with origin Mexico, the following HTS are to be declared:
| Country of origin | Additional HTS | Description of goods | Supplemental Duty Rate |
| Mexico | 9903.01.01 | All imports of articles that are products of Mexico, other than products classifiable under headings 9903.01.02 and 9903.01.03, and other than products for personal use included in accompanied baggage of persons arriving in the United States | 25% |
| Mexico | 9903.01.02 | Articles the product of Mexico 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. | No supplemental duty |
| Mexico | 9903.01.03 | Articles the product of Mexico 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. | No supplemental duty |
The decision for tariffs on Canadian goods was split as 25% for all Canadian goods except for “energy products” that would have only been subject to 10% ex Canada. How are the “energy products” defined?
Energy imports, as defined under section 8 of Executive Order 14156 of January 20th, 2025, include: 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).
The rate for supplemental duties was 10% for China and Hong Kong-goods as of Feb 4, 2025. What changed?
The administration has not seen a significant reduction to stem the flow of fentanyl into the US, and, therefore, has raised supplemental duties from 10% to 20%. Imported goods with a country-of-origin China will be subject to the normal duty rate plus 20%.
Are products subject to Sec 201, China Sec 301, and/or Sec 232 also subject to these supplemental duties?
Imported goods with a country-of-origin China will be subject to the normal duty rate plus the 20% supplemental duties and the Sec 301 duties as well.
Imported steel and aluminum goods subject to Sec 232 will be subject to the normal duty rate plus the country-specific supplemental duties and the Sec 232 duties as well.
Imported goods subject to Sec 201 will be subject to the normal duty rate, plus the country-specific supplemental duties and the Sec 201 duties as well.
Are goods subject to Anti-Dumping and/or Countervailing duties also subject to these supplemental duties?
Imported goods that are subject to Anti-Dumping and/or Countervailing duties will also be assessed the supplemental duties.
What about goods eligible under Chapter 98 HTS?
The additional duties imposed by heading 9903.01.20 (China), 9903.01.10 (Canada) or 9903.01. (Mexico) shall not apply to goods for which entry is properly claimed under a provision of chapter 98, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60.
For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of the repairs, alterations, or processing performed (in China and Hong Kong or Canada), as described.
For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in China and Hong Kong or Canada), less the cost or value of such products of the United States, as described.
Are goods entered into an FTZ subject to these supplemental duties?
Articles that are products of Canada or China and/or Hong Kong, excluding those encompassed by 50 U.S.C. 1702(b), except those that are eligible for admission to a foreign trade zone under domestic status as defined in 19 CFR 146.43, and are admitted into a United States foreign trade zone on or after 12:01 AM EST on 04 Feb 2025, must be admitted as privileged foreign status as defined in 19 CFR 146.41.
Such articles will be subject, upon entry for consumption, to the duties in effect at the time of admission into the United States foreign trade zone.
Are these supplemental duties eligible for Drawback?
Supplemental duties paid because of this action are not eligible for refunds under the Drawback program.
What does this mean for products eligible for USMCA?
Products eligible under USMCA will still be eligible for USMCA, however, even with the reduced duty treatment under USMCA, there will be a supplemental duty of 25%.
What happens to the De Minimis shipments?
Imported products with a country of origin of China, Hong Kong, Canada, and Mexico will still be eligible under the De Minimis provision under 19 USC 1321 regardless of their value.
Will Canada, Mexico, and/or China respond with retaliatory tariffs?
China has responded by imposing additional tariffs effective March 10th, on the following goods:
- 15% on chicken, wheat, corn, and cotton
- 10% on sorghum, soybeans, pork, beef, fruits, vegetables, and dairy and fish products
Canada has announced it will move ahead with an earlier plan to impose 25% tariffs on C$155 billion dollars of American merchandise. US $20 billion will take effect immediately and the remainder will begin in 21 days and will remain in effect until the US trade action is withdrawn.
Mexico is said to make their announcement on March 4, 2025.
