Editor’s Note
This article details the sweeping executive orders signed by President Trump on February 1, 2025, which impose new tariffs on imports from Canada, Mexico, and China. The piece outlines the immediate and delayed effective dates, as well as the stated rationale behind these unprecedented trade actions.
On February 1, 2025, President Donald Trump signed executive orders imposing tariffs on almost all imports from Canada, Mexico and China. Tariffs on China became effective on February 4, 2025, while Canada and Mexico reached agreements with the U.S. to delay tariffs until March 4, 2025.
The executive orders (collectively, “the Tariff EOs”) are:
The actions are unprecedented. This is the first time a U.S. president has used the International Emergency Economic Powers Act (IEEPA) to impose tariffs. And the Tariff EOs are far more expansive in scale and scope than previous trade remedy measures, such as the Section 301 tariffs imposed on Chinese imports.
- 10% ad valorem tariffs on Chinese products and Canadian energy and energy resources.
- 25% ad valorem tariffs on Mexican products and Canadian products (other than Canadian energy or energy resources subject to the 10% ad valorem tariffs).
- The mandated tariffs apply in addition to any preexisting tariffs.
- Drawback will not be available for the tariffs imposed under the Tariff EOs.
- Goods covered by the Tariff EOs are no longer eligible for de minimis duty-free treatment and must enter through the formal entry process.
CANADA
Current status: Agreement reached, tariffs delayed
Timing: Implementation delayed until March 4, 2025
Tariff amount: 25% ad valorem duties on all goods except for energy and energy resources, which are subject to 10% ad valorem duties
Goods covered: All goods, subject to certain exceptions
Drawback: Not available
De Minimis: Not available
Retaliation: If Canada retaliates, President Trump may increase tariffs or expand their scope
MEXICO
Current status: Agreement reached, tariffs delayed
Timing: Implementation delayed until March 4, 2025
Tariff amount: 25% ad valorem duties on all goods
Goods covered: All goods, subject to certain exceptions
Drawback: Not available
De Minimis: Not available
Retaliation: If Mexico retaliates, President Trump may increase tariffs or expand their scope
CHINA
Current status: No agreement reached, tariffs to be imposed
Timing: February 4, 2025
Tariff amount: 10% ad valorem duties on all goods
Goods covered: All goods, subject to certain exceptions
Drawback: Not available
De Minimis: Not available
Retaliation: If China retaliates, President Trump may increase tariffs or expand their scope
Canada
President Trump and Canadian Prime Minister Justin Trudeau reached an agreement on February 3, 2025, which delayed the implementation of the Canada EO until March 4, 2025. President Trump has since issued an additional EO, “Progress on the Situation at Our Northern Border” (Canada EO 2.0), that updates the original Canada EO.
As part of the agreement to delay the Canada EO, Canada committed to the following measures:
- Implementing a $1.3 billion border security plan (previously announced in December 2024), which includes reinforcing the U.S.-Canada border through enhanced coordination with U.S. law enforcement, increased information sharing, limiting traffic at the border, and the deployment of drones and Black Hawk helicopters for surveillance.
- Appointing a “fentanyl czar.”
- Listing drug cartels as terrorist organizations.
- Launching a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.
- Implementing a $200 million intelligence directive on organized crime and fentanyl.
Mexico
President Trump and Mexican President Claudia Sheinbaum reached an agreement on February 3, 2025, which delayed the implementation of the Mexico EO until March 4, 2025. President Trump has since issued an additional EO, “Progress on the Situation at Our Southern Border” (Mexico EO 2.0), that updates the original Mexico EO.
As a part of the deal to delay the Mexico EO, Mexico and the U.S. committed to the following measures:
- Immediately reinforcing the U.S.-Mexico border with 10,000 National Guard members to prevent trafficking of drugs — particularly fentanyl — from Mexico to the United States.
- The U.S. committed to working to prevent the trafficking of high-powered weapons to Mexico.
China
No agreement has been reached between President Trump and President Xi Jinping. China has taken retaliatory measures against the China EO, as described below.
Canada
Under the Canada EO 2.0, the imposition of additional tariffs has been delayed until March 4, 2025, at 12:01 a.m. EST. However, if the U.S. determines that the migration and drug crises have worsened and the Canadian government has failed to take adequate action, President Trump may immediately implement the tariffs described in the original Canada EO.
Mexico
Under the Mexico EO 2.0, the imposition of additional tariffs has been delayed until March 4, 2025 at 12:01 a.m. EST. However, if the U.S. determines that the migration and drug crises have worsened and the Mexican government has failed to take adequate action, President Trump may immediately implement the tariffs described in the original Mexico EO.
China
The tariffs on Chinese goods took effect on February 4, 2025.