Canada
Legal basis:International Emergency Economic Powers Act (IEEPA)
Effective date: 1 August 2025
Tarriff rate
- 35% tariff (The rate was increased from 25% to 35% effective as of 12:01 a.m. (EST) on August 1, 2025).
- 10% for "energy or energy resources" and potash.
- 40% transshipment duty rate, plus fines and penalties, imposed on any articles that (i) do not qualify for USMCA treatment; and (ii) are "determined by [CBP] to have been transshipped to evade applicable duties".
- The 40% transshipment duty rate applies in addition to the rate of duty for the actual country of origin of the goods.
- US authorities to publish a list of "countries and specific facilities used in circumvention schemes" and update every six months.
Carve-outs
- Goods that satisfy USMCA rules of origin are exempt.
- Goods subject to the Automotive Tariffs are not subject to additional Fentanyl Tariffs or other tariffs.
- Goods subject to Fentanyl Tariffs are not subject to additional sectoral tariffs on aluminum and steel and derivative aluminum and steel products.
Mexico
Legal basis: International Emergency Powers Act (IEEPA)
Effective date: 4 March 2025
Tariff rate
- 25% tariff (10% of potash)
- On July 31, 2025, President Trump and Mexican President Sheinbaum agreed to a 90-day extension of negotiations.
Carve-outs
- Goods that satisfy USMCA rules of origin are exempt.
China
Legal basis:International Emergency Powers Act (IEEPA)
Effective date: 4 March 2025
Tariff rate
- 20% tariff (plus 10% Reciprocal Tariff, for a total effective minimum tariff of 30%)
- The 90-day "truce" agreed between the United States and China for continued trade negotiations ends on August 12, 2025. Absent a further extension or agreement, the effective rates for Chinese goods may increase significantly.
- The 30% rate is additive, ie, apart from the exceptions noted for Reciprocal Tariffs (eg, Section 232 tariffs), the 30% duty rate applies on top of existing duties payable for any given article from China, eg, (i) Most Favored Nation tariffs; (ii) tariffs imposed under Section 232; and (iii) tariffs imposed under Section 301.
Carve-outs
Parties continue to negotiate potential exemptions
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
