CBP has issued official CSMS messages advising the threatened tariffs on Canada and Mexico take effective March 4, 2025 at 12:01 am. All products of Canada and Mexico, as the same are defined in each respective notice, will be subject to an additional tariff rate of 25% with few exceptions. Note certain energy and energy resources will be subject to a lower rate of 10%.
As it pertains to the applicable rules of origin, the rules are the same as in the prior directives. Specifically, whether a good is a product of Canada or Mexico is determined based upon the application of EITHER 19 CFR 102 or the “substantial transformation” transformation test. If a good is a product of Canada or Mexico based on the application of either rule, then the good is subject to the 25% duty with very few exceptions (e.g. donations, informational materials, energy resources defined above)
Also, note this time around de minimis treatment is still available, at least temporarily, for shipments valued under $800.00 USD. However, duty drawback remains unavailable as it pertains to these additional tariffs.
Finally, the president has signed an Executive Order revising the previous order from last month by increasing the duty rate on Chinese goods by 10%. Accordingly, most Chinese goods are now subject to additional duty of 20%. All other applicable duties continue to apply. The Executive Order is unclear as to an effective date, but all should operate under the assumption the effective date is the same as that for Canada and Mexico until clarification is provided.