Canada, China, Mexico, Trade Alerts

February 3, 2025
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3 minute read

U.S. Customs and Border Protection Implement Additional Duties on Products of the People’s Republic of China; U.S. and Canada/Mexico Agree to One-Month Pause on Tariffs

THOMPSON COBURN TRADE ALERT – IMPORTS
HEADLINE U.S. Customs and Border Protection Implement Additional Duties on Products of the People’s Republic of China; U.S. and Canada/Mexico Agree to One-Month Pause on Tariffs
DATE February 3, 2025, 5:30 PM EST
AGENCY Department of Homeland Security, Customs and Border Protection (CBP); Trump Administration
STATUS China – Duties to be imposed on goods entered or withdrawn from warehouse on February 4, 2025, unless one proves that the goods were shipped prior to February 1, 2025. Federal Register :: Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s February 1, 2025 Executive Order Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China
Federal Register :: Amended Notice of Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s February 1, 2025 Executive Order Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China
Canada – Federal Register :: Progress on the Situation at Our Northern Border
Mexico –  Federal Register :: Progress on the Situation at Our Southern Border
EFFECTIVE DATE China – February 3, 2025, 12:01 a.m. Eastern Time
Canada, Mexico – March 3, 2025 (tentative)
BACKGROUNDOn February 1, 2025, President Trump issued three Executive Orders requiring the imposition of 10% duties on all goods from China, 10% duties on Canadian petroleum products, and 25% duties on all other goods from Canada and all goods from Mexico.

On February 3, 2025, Mexico negotiated an extension with President Trump, DHS posted Federal Register Notices regarding the new tariffs on goods from China and Canada, and Canada negotiated an extension with President Trump.
DETAILS China
 
CBP published modifications to the Harmonized Tariff Schedule of the U.S. (HTSUS) duties to implement the increased duties on products of Chinese origin. In addition to reiterating requirements of the Executive Orders implementing the tariffs, the notices clarify that:
— goods entered or withdrawn for consumption, after 12:01 a.m. Eastern Standard Time on February 4, 2025, that were loaded or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. Eastern Standard Time on February 1, 2025, are not subject to additional duties if the importer certifies declares new HTSUS heading 9903.01.23 (China) as described in the annex;
— the additional duties apply to the value of Chinese processing of materials imported pursuant to 9802.00.40, 9802.00.50, 9802.00.60, and the value of the assembled article for 9802.00.80, but otherwise do not apply to goods entered pursuant to a provision of Chapter 98 HTSUS;
 
Canada and Mexico
— Trump and the leaders of Canada and Mexico announced on social media an agreement to a “one-month” pause on implementation of the February 1 duties imposed on their respective nations.
— CBP issued its proposed modifications to the HTS implementing tariffs on goods from Canada prior to the delay – 2025-02291.pdf. This will likely be rescinded. (Edit: The document was indeed withdrawn.)
BASIS 1 February 2025 Executive orders and authorities incorporated by reference.
HTS/ 
PRODUCTS 
China
— Subheading 9903.01.20 will apply an additional 10% tariff to goods of Chinese or Hong Kong origin as defined in the Annex.
COUNTRY Canada, China, Mexico
CITE China – Federal Register :: Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s February 1, 2025 Executive Order Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China
Federal Register :: Amended Notice of Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s February 1, 2025 Executive Order Imposing Duties To Address the Synthetic Opioid Supply Chain in the People’s Republic of China
Canada – Federal Register :: Progress on the Situation at Our Northern Border
Mexico –  Federal Register :: Progress on the Situation at Our Southern Border