USA/Canada Trade War Update – Amendment to US Tariffs

Toronto, March 7, 2025

US President Donald Trump signed an Executive Order yesterday to pause tariffs on Canada for USMCA/CUSMA qualifying goods until April 2nd, while reducing tariffs on non-USMCA/CUSMA Canadian origin potash to 10 percent.

Product Coverage

1. Articles that are entered free of duty as a good of Canada 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. The additional rate of duty on potash that is not subject to subsection (a) of this section shall be reduced to 10 percent in lieu of 25 percent.
3. The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.

General Note 11 to the Harmonized Tariff Schedule of the United States (HTSUS) list the details and Rules of Origin under the United States-Mexico-Canada Agreement.

IMPORTANT: Where goods were duty-free and not covered by a valid USMCA/CUSMA Certificate of Origin, those goods (where qualifying) must now be covered by a valid Certificate of Origin in order to benefit from the tariff exemption.

Universal Logistics has a full Free Trade Management Service to assist our clients with this process

Canada’s Response:

Canadian Finance Minister Dominic LeBlanc has advised “As a result, Canada will not proceed with the second wave of tariffs on $125 billion of US products until April 2nd, while we continue to work for the removal of all tariffs,”

Canada’s initial list of tariffs on $30 billion in US goods will remain in effect while the second round of tariffs on $125 billion of US goods has been pushed back to April 2nd.

For more information or to utilize Universal’s Free Trade Management Service, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.