On February 1^st 2025, US President Donald Trump signed a series of executive orders with the intent of placing 25% tariffs on all Canadian and Mexican goods entering the US, as well as a 10% tariff on all Canadian energy and energy resources, a 20% tariff on all Chinese products entering the US, and a discontinuation of Section 321 (19 USC 1321), suspending the $800 de-minimis for all goods entering the US from these three countries.

While as of February 3^rd, 2025 the implementation of the tariffs on Canadian and Mexican goods had been temporarily suspended for 30 days, and on February 7, 2025 the tariffs on China had been temporarily suspended until further notice, the US government implemented the tariffs at midnight on March 4th, 2025. In response, both Canada and China immediately responded with retaliatory tariffs on US goods, with Mexico planning to follow suit on March 9th, 2025.

As of March 6th, 2025 President Trump once again temporarily suspended tariffs on Canada and Mexico until April 2nd, 2025.

As of April 5th, 2025 new tariffs were issued by President Trump to a majority of countries around the world. Canada and Mexico, among a small number of other countries, were not present on this list.

Section 321 remains intact for the time being, leaving de-minimis unaffected. The suddenness and severity of these tariffs have caused many questions to arise, particularly among business owners.

Although concrete answers are incredibly difficult to offer at this time, we at Freightcom hope to offer as clear and concise a collection of key information that can provide some sense of guidance as the situation evolves.

Tariff Updates at a Glance

• 02/01/2025 - US President Donald Trump signs 3 executive orders placing heavy tariffs on all goods entering the US from Canada, Mexico, and China, and suspending the $800 de-minimis on goods entering the US.
• 02/03/2025 – US tariffs on Canadian and Mexican goods, as well as retaliatory tariffs on American goods by Canada and Mexico suspended for 30 days.
• 02/07/2025 – US Tariffs on Chinese goods have been suspended temporarily as US Customs and Border Protection assesses the processes and procedures needed to accommodate the increase in border inspection.
• 03/04/2025 - US tariffs on Canadian, Mexican, and Chinese goods took effect at 12 midnight EST. Canada and China have both confirmed that they will immediately go ahead with plans to issue retaliatory tariffs on US goods, with Mexico to follow suit on Sunday, March 9th, 2025. President Trump is threatening further tariffs that would go into effect on March 12th, 2025 and April 2nd, 2025.
• 04/05/2025 - Sweeping 10% tariffs on all non-exempt imports into the US took effect at 12:01 EDT. These tariffs do not apply to any goods in their final mode of transport before that time. Canada and Mexico were not named in these tariffs.
• 04/09/2025 - US President Trump places 90-day pause on all tariffs except those on China, adds Canada and Mexico back to list of affected countries when pause ends.

Nature of Tariffs

• Under these tariffs all goods entering the US not originating from Canada and Mexico (per the UMSCA's rules for origin) are subject to an additional 25% tariff.
• Energy being imported from Canada to the US, such as crude oil and potash, are subject to an additional 10% tariff.
• Under these tariffs goods imported to the US  whose contents are at least 20% of US origin will have required tariffs offset to reflect this.
• Under these tariffs all goods imported to the US valued under $800 USD still qualify for de-minimis under Section 321 until systems are in place for the US to collect revenue on low-value imports, at which time de-minimis treatment will no longer be available.

What is an Executive Order?

In short, an Executive Order is a signed order issued by the President of the United States that dictates actions to be taken by the executive branch of the US government regarding the governance of the country.

While these orders can be reviewed and overturned by the Supreme Court in some cases, the sitting President is the only one with the ability to issue, modify, or revoke these orders.

What Canadian Goods are Subject to US Tariffs?

At this time, the US has imposed a 25% tariff on steel, aluminum, and Canadian-manufactured vehicles being exported to the US, as well as a 10% tariff on energy goods such as crude oil and potash. 

What American Goods are Subject to Canadian Tariffs?

In response to the latest round of US tariffs, Canada has responded with a 25% tariff on all non-CUSMA compliant vehicles and non-Canadian and Non-Mexican content of CUSMA-compliant vehicles being imported into Canada from the US

For ongoing updates regarding Canada's countermeasures to US tariffs, please visit the Department of Finance's official dedicated update page.

How do the Tariffs on Non-CUSMA Goods Affect Canadian Businesses?

If a Canadian business is exporting goods to the US, the goods will be subject to a 25% tariff if their country of origin is any non-CUSMA country. This means that any goods that have been grown, majority manufactured, or are made of majority materials sourced from anywhere other than Canada, Mexico, or the US, they fall under the executive order and are subject to the tariffs.

What is Section 321?

Section 321 is a provision within U.S. customs law that, until recently, permitted the duty-free importation of goods valued at $800 USD or less.

This exemption, commonly referred to as the U.S. De-minimis Value, was established to facilitate international trade and minimize administrative burdens for low-value shipments.

By keeping shipments under the $800 threshold, importers could generally bypass formal customs entries and additional fees, enabling swift, duty-free deliveries to U.S. consumers.

What Would the Suspension of the De-Minimis Mean?

Under Section 321, goods entering the US from Canada and Mexico are exempt from all duties and tariffs if their declared value was under $800 USD.

Should this change per this new executive order, all commercial goods entering the US would be subject to US tariffs regardless of declared value.

What is Required when Shipping to the US?

As a practical matter, U.S. Customs and Border Protection (CBP) will require more robust documentation to substantiate:

1. Rules of Origin under CUSMA (to see if the goods truly qualify for preferential duty-free treatment).

2. Value-Added Content if you plan to reduce the additional duty by showing that 20% or more of the article’s value is U.S. origin.

Exporters or brokers may be required to submit certificates of origin, bills of materials, manufacturing records, or value statements indicating the cost breakdown of U.S.-origin vs. non-U.S.-origin components.

What Steps Can I Take?

Stay Informed

Monitor announcements from the US CBP, the Office of the United States Trade Representative (USTR), and Canadian trade bodies to remain aware of any changes as they happen.

Prepare for Stricter Border Control

Inspection of goods entering the US will become more frequent and more thorough. To avoid potential delays, ensure that all information listed on bills of lading, customs invoices, and all other paperwork are as accurate and detailed as possible.

Double-Check Commodity Classifications

Properly classify goods under the Harmonized System (HS) codes to ensure accurate assessment of duties and taxes.

Seek Professional Advice

If you are uncertain about any aspect of these changes, consulting a customs broker or trade compliance expert can help clarify your specific obligations and potential cost impacts.

Freightcom is Ready to Support Canadian Businesses in Need

Unfortunately, there are no simple or immediate answers to how these tariffs will affect the Canadian economic landscape in the near future. Despite this uncertainty, though, Freightcom remains a proudly Canadian company, partnering with trusted Canadian shipping carriers, and as committed as ever to provide Canadian businesses with support in the best way we can.

If you have any questions or concerns regarding how Freightcom is navigating these tariffs, please contact your Freightcom account manager.

This is a challenging time for all Canadians, and it is vital that we stand united to support one another.