We wanted to provide you with updates and additional information we have pursued and recently received regarding the new tariffs on Canada, Mexico, and China*.
30-Day Exemption for Automobiles Under USMCA
- White House spokeswoman Karoline Leavitt told reporters that the president indicated that a one-month exemption is given to “any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month, so they are not at an economic disadvantage.”
- The exemption applies to all cars that qualify for USMCA duty-free entry. It is not currently clear whether auto parts that meet USMCA rules of origin will also be spared.
- Leavitt later said that the President is open to lobbying requests on “additional exemptions” for Canadian or Mexican products.
Mexico and Canada (or the International Emergency Economic Powers Act/IEEPA) Tariffs
- These tariffs – 25% on ‘products of Mexico and Canada’ with a 10% duty on energy products of Canada – went into effect on March 4, 2025 at 12:01 am;
- Section 321, also known as de minimis, shipments are not subject to the new tariffs, yet;
- No drawback is allowed with the new tariffs; however, it may still be allowed for other eligible duties paid;
- Goods of Canada and Mexico origins that have entered a Foreign Trade Zone (FTZ) on or after March 4 must be admitted as privileged foreign status, and upon entry for consumption to the US they will be subject to the duty rate in effect at the time of admittance in the zone;
- There is no grace period allowed for goods already in transit;
- The new tariffs exclude:
- personal use items;
- 9801 – goods exported from the US and returned to Mexico and/or Canada;
- 9802.00.40 or 9802.00.50 (repairs/alterations) – duties apply to the value added in Mexico/Canada;
- 9802.00.60 (metal articles processed abroad) – duties apply to value added in Mexico/Canada;
- 9802.00.80 (assembly of US components) duties apply to the value added in Mexico/Canada;
- other goods in Chapter 98 of the Harmonized Tariff System;
- donations of food, clothing and medication intended to relieve human suffering; and
- Informational materials, including but not limited to publications, books, films, posters, photographs, microfilms, tapes, CDs
- If you have goods or products that you suspect may be exempt, we strongly recommend you first seek classification assistance (from our Trade Advisory Group) or speak to a qualified trade attorney prior to import into the U.S.
China
- President Trump issued an Executive Order on February 1 adding 10% tariff on goods originating in China. Yesterday he amended that order, raising China’s tariff to 20%.
- For goods of China or Hong Kong origin entered or withdrawn for a warehouse on or after February 4, 2025 at 12:01 am EST through March 3, the duty rate is 10%. Note: goods that were loaded onto a vessel at the port of lading OR in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025 and entered for consumption before 12:01 am on March 7th are not subject to additional duty
- For China origin goods entered or withdrawn from a warehouse on or after March 4, 2025 at 12:01 am EST the additional duty will be 20%.
A.N. Deringer, Inc. requires advance payment of new duties three days prior to entry summary date. If you have not discussed the new tariffs and duty payments with us yet, please don’t hesitate to reach out to your Customer Service Center at your earliest possible convenience prior to booking shipments affected by new tariffs. This will help avoid delays.
We also strongly encourage our customers to apply for their own Automated Clearing House (ACH) account as soon as possible.
Visit anderinger.com for additional resources, including our New Trade Landscape page and archive of Trade Alerts.
*Source: National Customs Brokers & Forwarders Association of America (NCBFAA) and Sandler, Travis & Rosenberg, P.A and International Trade Today.