On March 6, 2025 President Trump issued an Executive Order amending the International Emergency Economic Powers Act (IEEPA) 25% duties on goods originating in Canada and Mexico, imposed in Executive Order 14193 of February 1, 2025.

Effective on or after 12:01 am eastern standard time March 7, 2025, goods that are entered for consumption or withdrawn from warehouse for consumptions that qualify for United States-Mexico-Canada trade agreement (USMCA) are exempt from the additional duty rates that were implemented on March 4, 2025.

The Executive Order specifically states:

1. Articles that are entered free of duty as a good of Canada or Mexico under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada, shall not be subject to the additional ad valorem rate of duty described in section 2(a) or section 2(b) of Executive Order 14193.
2. Potash
   1. Potash, that is product of Canada or Mexico, is exempt from the additional duty, if it qualifies for USMCA. Potash that does not qualify for USMCA is subject to 10% duty
   2. The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.
3. No end date for these exemptions for USMCA qualifying goods is specified in the Executive Orders nor CBP’s CSMS messages.

It appears that the exemption is NOT retroactive, thus those goods imported on March 4th, 5th, and 6th are subject to tariffs.

A.N. Deringer, Inc. will closely monitor the Federal Register and Customs Messaging for further clarifications and Customs and Border Protection’s (CBP) guidance on this latest order.

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