Customs Provides Guidance on New Tariff Subheadings Applicable to Canada and Mexico Tariffs, De Minimis Treatment Will Temporarily Remain Available

On March 3, 2025, U.S. Customs and Border Protection (Customs) issued two notices providing guidance on the implementation of the previously announced tariffs on imports from Canada and Mexico. The notices also provide the new tariff subheadings under Chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) that importers will need to declare for imports from Canada and Mexico entered on or after 12:01 a.m. eastern standard time on March 4, 2025. Most imports will be subject to an additional 25 percent tariffs and energy imports will be subject to an additional 10 percent tariff.

On March 2, 2025, the President issued two Executive Orders postponing the elimination of duty-free treatment on imports from Canada and Mexico that meet the de-minimis thresholds under 19 U.S.C. §1321. The de minimis exemption allows certain low value imports to enter the United States duty-free. Under the Orders, such imports from Canada and Mexico will remain duty-free under the de-minimis exemption until the U.S. Department of Commerce notifies the President that adequate systems are in place to process and collect tariffs on such imports. The exemption was previously scheduled to be eliminated for imports from Canada and Mexico on March 4, 2025 when the additional tariffs on imports from Canada and Mexico go into effect.

President Increases IEEPA Tariffs on China from 10% to 20%

On March 3, 2025, the President issued an Executive Order increasing the previously announced 10% duty on imports from China to 20%, because China has not taken sufficient steps to blunt the sustained influx of synthetic opioids, including fentanyl, into the United States. These tariffs were instituted under the International Emergency Economic Powers Act (IEEPA) and are in addition to any other tariffs due on the same merchandise, including any Section 301 tariffs or Section 232 tariffs.