US imposes tariffs on goods, including food, from Canada, Mexico, and China.

An March 4, 2025, the Trump administration, under the International Emergency Economic Powers Act (IEEPA), implemented new tariffs on imports from Kanada, Mexico, and China. This regulatory action is intended to address concerns related to illegal immigration and drug trafficking by using economic pressure as a deterrent.

The tariffs, announced by U.S. Secretary of Commerce Howard Lutnick, are in addition to existing duties and will remain in place until the U.S. government determines that the targeted countries have taken sufficient corrective actions. The U.S. has expressed a willingness to negotiate adjustments or exemptions.

Key Details:

• Canada & Mexico: Most imports face an additional 25% duty, while energy and energy resources from Canada are subject to a lower 10% additional duty.
• China: Imports initially faced an additional 10% duty starting February 4, which increased by another 10% on March 4, bringing the total IEEPA tariff rate to 20%.
• Exemptions: Very limited exemptions are available, requiring compliance teams to closely monitor product classifications and applicable rates.

Assessment & Impact

The new tariffs will significantly increase costs for businesses importing goods from Canada, Mexico, and China. The energy sector in Canada faces a relatively lower tariff impact, but other industries will experience notable cost increases.

Global Response & Retaliation

All three affected countries have responded with retaliatory measures, introducing additional tariffs on U.S. goods:

• China has imposed up to 15% retaliatory tariffs on U.S. agricultural exports.
• Kanada has implemented a 25% tariff on a range of U.S. products.
• Mexiko has also announced its own countermeasures, impacting key U.S. exports.

What’s Next?

Businesses should review their supply chains to assess exposure to the affected tariffs and consider alternative sourcing options. Given the escalating trade tensions, companies should stay informed on policy developments and be prepared for potential further adjustments.

Importers from China, Canada, and Mexiko should also factor in increased costs when planning pricing and supply chain logistics to mitigate financial impact.

The situation remains fluid, and businesses should monitor ongoing trade negotiations for any updates or possible tariff adjustments.