President Donald Trump confirmed on March 3, 2025, that the long-anticipated tariffs called for on Canada and Mexico would take effect, alongside additional tariffs against Chinese imports. The 25% tariffs against Canada and Mexico came into force on March 4, 2025, after a 30-day suspension of the measures, which had been paused pending negotiations between the countries.
An additional 10% tariff has been imposed against Chinese imports, which will be applied on top of the 10% tariffs already implemented on February 4, 2025, and will affect some goods which had not previously been subject to tariff measures.
Trump has cited illegal trafficking of fentanyl and illegal immigration as justification for the measures, calling for Canada and Mexico to tighten security of their borders with the US as concerns grow over a looming trade war. As the US’s main trading partners under the US-Mexico-Canada Agreement (“USMCA”) (and previously the North American Free Trade Agreement), most goods imported from Mexico and Canada had previously enjoyed duty free treatment, however the new tariffs will apply to these goods. On March 5, 2025, the White House announced that automobiles which qualify for USMCA treatment will be temporarily exempt from the 25% tariffs on Mexico and Canada, until reciprocal tariffs on imports from other countries take effect (scheduled for April 2, 2025) .
Retaliation by Mexico and Canada is expected, with Canadian Prime Minister Justin Trudeau announcing the immediate imposition of tariffs, with further measures implemented if the US tariffs remain in place after 21 days and subject to public consultation. Mexican President Claudia Sheinbaum is expected to announce a response on or around March 9, having already suggested that her country has made “contingency plans”. China quickly announced its own retaliatory measures, including 10-15% tariffs on some US agricultural goods, as well as sanctions and export controls targeting US industries.
Baker McKenzie have been advising clients in preparation for these tariffs for several months. Our Global Customs team have been following these developments closely and are ready to advise clients on how these measures impact supply chains, and to help mitigate their impact. Given the fast-paced nature of these developments, staying up-to-date is essential. Keep an eye on our Import and Trade Remedies Blog for ongoing updates, and see below some upcoming key dates announced by Trump:
- March 12, 2025 – 25% tariffs on steel and aluminum goods and derivative products expected to recommence.
- April 2, 2025 – President Trump’s “reciprocal tariffs” are set to go come into effect, matching the tariffs other countries impose on U.S. products, making them country-specific rather than blanket tariffs.
- ~April 2, 2025 – Additional tariffs on automobiles, semiconductor chips and pharmaceutical products expected.
