Cross Border Trade Updates
March 3, 2025
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- Canada and Mexico Tariffs:
- On March 3, President Trump announced he will impose 25% tariffs on all imports from Canada and Mexico, with 10% for Canadian energy, saying that there is “no room” for last minute negotiations.
- Mexico is working with the United States to reach an agreement before the 4 March deadline.
- Commerce Launches Investigation under Section 232:
- On 25 February, the Commerce Department announced that they will launch an investigation into copper imports under Section 232 that could lead to additional tariffs. President Trump signed an executive order on the investigation that afternoon.
- China is asking the United States to pause the investigation and warns of retaliation if tariffs are implemented.
- Potential Tariffs on China:
- During Trump’s first cabinet meeting of his second term, he announced doubling the 10% tariff on imports from China by 4 March for their role in the manufacturing of chemical used to make fentanyl.
- China is preparing countermeasures that would include both tariff and non-tariff measures. As scope of the tariffs is not available, it is unclear whether food processing and packaging machinery would be included in the goods subjected to additional tariffs.
- De Minimis Shipments from Mexico and Canada:
- On March 2, President Trump amended then Executive Orders for Canada and Mexico stating that de minimis shipments would not be subject to tariffs until “adequate systems” are in place to collect tariff revenue.
- Potential EU tariffs (sent on 26 Feb):
- President Trump’s comments on trade during his first Cabinet meeting included the announcement of 25% tariffs on imports from the EU-27. He indicated the tariffs would be applied “generally” but also specifically mentioned hitting auto imports. There is no immediate action as scope is not yet available, and it’s unclear if specific EU Member States would be targeted and/or if food processing and packaging machinery would be targeted.
- The EU pushed back against President Trump’s threat and warned of retaliatory measures if tariffs are implemented.
- Port fees for Chinese built or operated ships (sent on 24 Feb):
- US Trade Representative announced a detailed list of proposed fees and other shipping restrictions on Chinese-built or operated ships that dock at US ports to counter unfair policies that allowed China to dominate the shipbuilding industry. Proposals include charging up to $1.5 million for Chinese-built vessels entering US ports.
- China spoke out against the proposed fees saying that “it would drive up global shipping costs and disrupt the stability of global supply chains” and that it “seriously violates” rules in place by the WTO.
- Greer Confirmed as USTR (sent on 26 Feb):
- On 26 February, the Senate confirmed Jamieson Greer to serve as the US Trade Representative.
