In an increasingly complex trade environment, recent tariff adjustments affecting imports from China, Mexico, and Canada warrant careful attention. These new measures—implemented without a transition period—will impact supply chains, operational costs, and strategic sourcing decisions.
Tariffs on Mexico & Canada: 25% Duties on Most Imports
Effective March 4, 2025, the United States imposed a 25% tariff on most goods from Mexico and Canada. An exception applies to energy products from Canada, which are subject to a 10% duty instead.
While a limited set of exemptions exist—including personal-use items, humanitarian donations, and select Chapter 98 HTSUS classifications—goods already in transit when the tariffs took effect are not exempt. Businesses utilizing Foreign Trade Zones (FTZs) should note that any goods admitted post-March 4 must enter under privileged foreign status, ensuring duties are assessed at the rate in effect at the time of admission.
China: Tariffs Increase to 20%—Retroactively
The situation is particularly challenging for importers sourcing from China. The previous 10% tariff has been doubled to 20%, retroactive to February 4. This adjustment means that duties already paid at the lower rate will now require an additional 10% payment unless shipments were already in transit prior to February 1. That exception, however, expires on March 7, after which all applicable imports will be subject to the full tariff.
Steel & Aluminum: Heightened Compliance & 200% Duties on Russian Metals
On March 12, a 25% tariff will take effect on a broader range of steel and aluminum products, extending beyond previously classified derivatives. Furthermore, new regulations require importers of aluminum to declare the primary and secondary smelting locations for all shipments.
In a significant policy move, any aluminum or steel with Russian-origin materials—regardless of where the final product was processed—will be subject to a 200% tariff. This measure introduces substantial cost implications and increased due diligence requirements for importers managing multi-origin supply chains.
Strategic Considerations for Importers
The immediate consequences of these tariff increases include rising costs, potential supply chain disruptions, and increased customs compliance requirements. Additionally, Canada and China have initiated retaliatory tariffs, targeting key U.S. export sectors such as agriculture and manufacturing.
Businesses should proactively evaluate:
- Alternative sourcing strategies to reduce exposure to these tariffs.
- FTZ and duty mitigation programs to manage costs effectively.
- Customs classification optimization to ensure compliance while minimizing financial impact.
At Everglory Logistics, we recognize that international trade is built on precision, foresight, and strategic adaptability. If these tariff changes affect your business, our team is prepared to assist in developing comprehensive trade solutions that mitigate risk and enhance operational efficiency. Contact us today to ensure your supply chain remains resilient in an evolving regulatory landscape.
