Toronto, April 4, 2025
In yesterday’s announcement, U.S. President Donald Trump outlined tariffs on Canada and sweeping Reciprocal Tariffs being imposed on a number of countries.
Here is what we know so far…
Canada and Mexico
USMCA/CUSMA Qualifying Goods – 0 percent Tariff
USMCA/CUSMA Non-Qualifying Goods – 25 percent Tariff
For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means USMCA compliant goods will continue to see a 0 percent tariff, non-USMCA compliant goods will see a 25 percent tariff and non-USMCA compliant energy and potash will see a 10 percent tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12 percent reciprocal tariff.
All Other Countries – Reciprocal Tariffs
President Trump will impose an additional 10 percent tariff on all countries effective 12:01 am Eastern Standard Time (EST), April 5, 2025.
The additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order.
Below are the lists of countries and their Reciprocal Tariffs which become effective 12:01am EST April 9, 2025:
The following goods will not be subject to the Reciprocal Tariff:
- articles subject to 50 USC 1702(b);
- steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs;
- copper, pharmaceuticals, semiconductors, and lumber articles;
- all articles that may become subject to future Section 232 tariffs;
- bullion; and
- energy and other certain minerals that are not available in the United States.
China de Minimis Exemption
Following the Secretary of Commerce’s notification that adequate systems are in place to collect tariff revenue, President Trump is ending duty-free de minimis treatment for covered goods from the People’s Republic of China (PRC) and Hong Kong starting May 2, 2025 at 12:01 a.m. EST.
- Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures.
- All relevant postal items containing goods that are sent through the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). This is in lieu of any other duties, including those imposed by prior Orders.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
