What is the current status of the tariffs?

For US Importations of Canada, Mexico, and China Goods:

• An imposement of 25% tariffs on all products of Canada with a reduced 10% tariff on energy and energy resources. - Paused until March 1, 2025
• An imposement of 25% tariffs on all products of Mexico. - Paused until March 1, 2025
• An imposement of an additional 10% on products of China - In effect as of 12:01 AM February 4th, 2025.

For Canadian Importations of US Goods:

• An imposement of 25% tariff on certain US goods - Paused for 30 Days
• The previously published United States Surtax order, - Repealed

How can I tell if the goods I import are affected by the tariffs?

For US Importations of Canada, Mexico, and China Goods:

• All products of Canada are to receive the 25% tariff, with the exception of energy and energy resources, which are at a rate of 10%. The term “energy” or “energy resources” means crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3).
• All products of Mexico are to receive the 25% tariff.
• All products of China are currently being assessed an additional 10%.

For Canadian Importations of US Goods:

• Subject goods were those that are products of (made in, grown, produced in) the US whose HS code is included on the Department of Finance's list of goods subject to 25% tariff. If you import goods on this list, they will be subject to the surtax. To determine this, you will need to identify your good's HS Code.

If my goods are “shipped from” one of these countries but not “made in,” are they subject to the additional tariffs?

‘Country of origin’ does not refer to where the goods are shipped FROM, but instead, it is where the goods are grown, produced, or manufactured. For some goods, the country of origin and place of export may be one in the same. To learn the difference between “shipped from” and “made in” please review our blog What Is The Country Of Origin? To receive a review of the origin of your goods, we recommend speaking to one of our Trade Advisors.

If my goods were in transit before the tariff’s implementation date, are they exempt?

For US Importations of China Goods:

• Goods in transit if loaded prior to February 1, 2025 on the last conveyance prior to entry into the US, or withdrawn from a warehouse for consumption on February 4, 2025, are exempt but only until March 7, 2025 if they can prove qualification for the exemption.

For Canadian Importations of US Goods:

• Goods in transit to Canada and in carrier control on the day the surtax order was scheduled to come into force were exempt from the surtax based on the previous, now rescinded, order.

Do USMCA / CUSMA / T-MEC supersede these tariffs, meaning I will not have to pay the 25% if my goods qualify for these Free Trade Agreements?

No. The tariffs are in ADDITION to any current rate of duty you are paying on your imports. For example, if your Canadian company imports Chocolate Bars made n in Florida, and they are duty-free under the preferential tariff treatment allowed for under CUSMA, if the currently paused 25% Surtax comes to fruition, they would be assessed an additional duty(surtax) at a rate of 25%. If you are a US business importing any commodity other than energy or energy resources from Canada that were previously duty-free, those goods would be assessed a duty rate of 25%.

Where will I see the additional tariffs, and how will I pay them?

For US Importations of Canada, Mexico, and China Goods:

This depends on your agreement with your Customs broker, or if you are enrolled in the US Customs and Border Protection Automated Clearinghouse program.

• If Broker Backed: Duties will be reflected on your Customs broker invoice and CF7501 and can be paid directly to your broker, which will be remitted to the government on your behalf. In some cases, your broker may require immediate payment prior to release.
• ACH Enrolled: If you remit your duties yourself via the ACH program, you will be notified of your duty amounts on your CF7501, as well as your weekly standard reporting. You will experience minimal delays in shipment processing.
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For Canadian Importations of US Goods:

This depends on the type of importation:

• Commercial Declarations: Surtax would have been assessed transactionally as part of the Commercial Accounting Declaration (CAD) and payable through your CARM Client Portal account with Canada Border Services Agency (CBSA).
• Personal Declarations: Duties will be reflected on your Customs brokers invoice and CF7501 and can be paid directly to them, which they will remit to the government on your behalf. Please be advised immediate payment may be required before release.