TRUMP ADMINISTRATION TRADE ALERT – IMPORTS | |
HEADLINE | Implementation of Additional Duties on Products from Canada |
DATE | March 3 2025 |
AGENCY | Department of Homeland Security, Customs and Border Protection (CBP) |
STATUS | 25% duties implemented on all goods from Canada; 10% on oil and gas and critical mineral articles (except donated items intended to relieve human suffering under 9903.01.11, informational items under 9903.01.12, and products for personal use included in accompanied baggage of persons arriving in the U.S.) |
EFFECTIVE DATE | March 4 2025, 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. On February 3, 2025, Canada negotiated a 30-day extension with President Trump until March 3. |
DETAILS | CBP’s Notice of modifications to the Harmonized Tariff Schedule of the U.S. (HTSUS) to implement the increased duties on products of Canadian origin was published for public inspection on March 3, 2025. It is scheduled for official publication on March 6, 2025. The duties will be effective at 12:01 a.m. on March 4, 2025. • HTS 9903.01.10 imposes 25% duties on all products of Canada. Pursuant to the Notice, a good is a “product of Canada” if it is determined to be so pursuant to Part 102 of Title 19, or if the good was last substantially transformed in Canada. • HTS 9903.01.13 imposes 10% duties on oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. § 1606(a)(3). • The de minimis exemption for duty-free treatment is allowed to continue for goods imported from Canada until the Secretary of Commerce notifies the President that adequate procedures are in place to handle those entries. • The Notice reiterates additional exceptions for certain personal and humanitarian shipments. • The additional duties do not apply for goods properly claimed under a provision of Chapter 98, except the additional duties apply to the value of repairs declared under 9802.00.40, 9802.00.50, and 9802.00.60. For 9802.00.80, the additional duties apply to the value of the article assembled abroad, less the cost of value of such products of the United States. It is possible that the Notice may be modified or revoked prior to the official publication, as was the case when the duties were first announced in February. |
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 | Subheading 9903.01.10 imposes an additional 25% duties on all goods of Canada Subheading 9903.01.13 imposes an additional 10% duties on certain oil & gas and critical mineral articles |
COUNTRY | Canada |
CITE | Federal Register :: Notice of Implementation of Additional Duties on Products of Canada Pursuant to the President’s Executive Order 14193, Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border Federal Register :: Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border Federal Register :: Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border Amendment to Duties to Address the Flow of Illicit Drugs across our Northern Border – The White House Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border – The White House |