TRUMP ADMINISTRATION TRADE ALERT – IMPORTS
HEADLINE	IEEPA Tariffs on Canada Increased to 35%
DATE	July 31, 2025
AGENCY	Department of Commerce, Department of Homeland Security, Customs and Border Protection (CBP)
EFFECTIVE DATE	August 1, 2025 at 12:01 a.m. Eastern Time
BACKGROUND	On February 1, 2025, President Trump issued an Executive Order imposing 25% duties on all goods from Canada and 10% on certain energy products. On February 3, 2025, Canada negotiated a 30-day extension with President Trump until March 4. On March 4, 2025, the additional 25% IEEPA tariffs went into effect for goods from Canada. Effective March 7, 2025, goods that comply with the USMCA were exempted from the additional 25% tariffs.
DETAILS	In an Executive Order dated July 31, 2025, the Trump Administration has increased the 25% tariffs on goods from Canada to 35%, citing “Canada’s lack of cooperation in stemming the flood of fentanyl and other illicit drugs across our northern border.”   TRANSSHIPMENT: • Non-USMCA goods which are determined by CBP to have been transshipped to evade the tariffs will be subject to: (1) 40% duties instead of 35%; (2) “any other applicable or appropriate fine or penalty, including those assessed under 19 U.S.C. 1592,” the statute regulating CBP penalties; and (3) all other applicable duties, fees, taxes, exactions, or charges. • The order forbids CBP from mitigating penalties assessed for transshipment. • The Secretaries of Commerce and Homeland Security are directed to publish a list every 6 months of countries and specific facilities found to be circumventing the tariffs through transshipment. STACKING PROVISIONS: • The EO does not affect the stacking provisions in Executive Order 14289 (Apr. 29), amended by Proclamation 10947 (June 3), which prioritizes: (1) automobile tariffs; (2) steel/aluminum tariffs; and (3) Canada/Mexico tariffs.
BASIS	International Emergency Economic Powers Act (IEEPA), 50 U.S. Code § 1701 et seq.; the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA); section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483); and section 301 of title 3, United States Code.
HTS/  PRODUCTS	All products, except for: • Products eligible for USMCA entered under 9903.01.14 (0%) • Energy products described in 9903.01.13 (10%) • Potash under 9903.01.15 (10%)
COUNTRY	Canada
CITE	White House – Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border   CBP – CSMS # 65798609 – Update – Additional Duties on Imports from Canada

Recent Trade and Compliance Actions Homepage