Tariff Update – March 7, 2025

Tariff Update: March 7, 2025

The tariff landscape for importers remains fluid as new duties on Mexico, Canada, and China took effect this week, with additional announcements made. Here’s the latest on key developments.

Mexico & Canada:

The previously suspended 25% tariffs on Mexico and Canada were reinstated Tuesday, with an amendment (click to read) taking effect at 12:01 AM today.

The details of tariff enforcement are becoming complicated. For example, 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.

Be aware that the exemptions are 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.

Noteworthy is that Canada has imposed retaliatory tariffs on certain U.S. goods, with more to follow. Mexico has indicated it will respond with tariffs, but no details have been announced.

Meanwhile, steel and aluminum tariffs will take effect March 12, 2025. Importers should note that tariff calculations will require an understanding of manufacturing details, including material derivatives, smelting origin, and melt-and-pour locations.

For more details (click below):

• Federal Register – Aluminum Tariffs

• Federal Register – Steel Tariffs

China:

A new 10% tariff on Chinese imports took effect this week, adding to the 10% tariff from February 4 and existing duties of up to 25% from the President’s first term. In response, China announced additional 10%-15% tariffs on specific U.S. goods, effective March 10, in addition to new export restrictions on designated U.S. companies.

During a Congressional address on Tuesday, Trump confirmed that further tariffs will be implemented April 2, including “reciprocal tariffs” and non-tariff measures targeting trade imbalances. He specifically cited India, South Korea, the EU, and China for imposing high duties on U.S. exports.

Jaguar Freight will continue to monitor and provide updates as new information becomes available.