- New Tariff Implementation: The United States has introduced a 25% tariff on products from Mexico and Canada, with a 10% levy specifically on Canadian energy resources, effective March 4, 2025. This move follows the invocation of the International Emergency Economic Powers Act (IEEPA) and aims to address national security concerns.
- Increased Tariffs on China: The US has raised tariffs on all goods from China from 10% to 20%, following an Executive Order aimed at combating the flow of synthetic opioids into the US. In retaliation, China has imposed tariffs of up to 15% on various US agricultural exports and expanded restrictions on US companies.
- Business Considerations: Companies engaged in North American and China trade should assess the impact of new tariffs on their import/export operations, review contracts for liability on duties, consider alternative sourcing strategies, and explore options like the US Free-Trade Zone program to mitigate duty costs and improve cash flow.
Source EY
