New Tariffs on China, Mexico, and Canada: What Importers Need to Know
The latest round of tariffs is officially in effect, and the impact will be immediate for importers working with China, Mexico, and Canada. These changes increase costs, shift supply chain strategies, and come with no grace period for goods already in transit. Here’s what you need to know.
Mexico & Canada: 25% Tariffs Now in Place
As of March 4, 2025, a 25% tariff is now applied to most imports from Mexico and Canada, except that energy products from Canada are subject to a 10% tariff instead. Unlike some past rollouts, this one has no exemptions for goods already en route.
Some goods, including personal-use products, humanitarian donations, and certain Chapter 98 HTSUS entries, remain exempt. Goods entering a Foreign Trade Zone (FTZ) after March 4 must be classified under privileged foreign status, which locks in the tariff at the rate effective upon admission.
China: Retroactive 20% Tariffs
A major change to China’s tariff structure is now retroactively increasing duties from 10% to 20%. If you have already paid 10%, expect to pay the additional 10% difference unless your goods have already been in transit before February 1, 2025. That exemption, however, expires on March 7. After that date, the full 20% applies across the board.
Steel & Aluminum: Higher Duties and Russian Restrictions
New 25% tariffs on steel and aluminum products, including derivatives, take effect March 12. Additionally, Russian-origin aluminum or steel imports will now be hit with a 200% tariff. Importers must now document and report the primary and secondary smelt locations for all aluminum imports, adding another layer of compliance.
What This Means for Importers
These tariff increases aren’t just about raising revenue—they’re already triggering retaliation. Canada and China have responded with their own counter-tariffs, particularly targeting U.S. agriculture and exports. Businesses importing from these regions must immediately reassess cost structures, payment strategies, and compliance measures.
At Bestway International, we understand how sudden tariff shifts disrupt supply chains and impact your bottom line. We’re here to help you navigate duty obligations, exemptions, and FTZ strategies to keep costs down. Contact our team today for expert guidance on mitigating these new trade costs and keeping your shipments moving.
