Executive Orders Imposing New Tariffs on Canada, Mexico, and China

The information is current as of February 1, 2025. Details may change at any time. For the most up-to-date information after this post date, we encourage you to check verified sources. We will provide updates as official statements become available.

Memo from the U.S. Chamber of Commerce:
Today, February 1, President Trump issued three executive orders imposing new tariffs on goods from Canada, Mexico, and China. Below is a summary of those Executive Orders as well as other relevant information. The Chamber will provide updates as events warrant.

Scope of the Tariffs:
Effective at 12:01 AM on Tuesday, February 4, 2025:
• 10% on oil and gas products and hydroelectric power from Canada
• 25% on all other products from Canada and Mexico
• 10% additional tariffs (on top of existing tariffs) on all products from China
• The tariffs apply to goods that otherwise would have come in under the de minimis exception for shipments valued at less than $800.

Escalation:
• The EOs signal the administration may increase or expand the scope of the tariffs in response to any retaliatory tariffs.

Exemptions / Exemption Process:
• There are no specific exemptions in the initial order.
• There is no exemption process established.

Initial Collection of Duties:
• Estimates vary on how quickly Customs and Border Protection could actually begin collecting the tariffs; however, CBP may well be able to do so on February 4 as ordered.

Tariff Authority:
• The President invoked the International Emergency Economic Powers Act (IEEPA).
- Note, the text of IEEPA includes no mention of tariffs, and since its enactment in 1977 IEEPA has never been used to impose tariffs.
- Many analysts argue tariff action like this under IEEPA could be subject to a successful legal challenge, and this concern has been voiced within the administration as well.
• The President’s emergency declaration is based on the failure of Canada / Mexico / China to do more to prevent illicit drugs from entering the U.S.

Process for Removing / Modifying the Tariffs:
• Upon the President’s determination that a particular country has taken sufficient action to alleviate the crisis, the tariffs shall be removed.

Retaliation:
• The governments of Canada and Mexico have indicated their intent to retaliate.
• Canadian customs authorities have told the trade community that they are “fully prepared to implement any surtax orders that the Government of Canada may introduce in response to tariffs imposed by the United States” and have the ability do so “on the same day without consultation.”

U.S. Chamber Statement and Action:
The Chamber issued the following statement: “The President is right to focus on major problems like our broken border and the scourge of fentanyl, but the imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains. The Chamber will consult with our members, including main street businesses across the country impacted by this move, to determine next steps to prevent economic harm to Americans. We will continue to work with Congress and the administration on solutions to address the fentanyl and border crisis.” 

The U.S. Chamber is currently conferring with members on next steps and welcome your feedback. Especially helpful is information on how you expect these tariffs and retaliatory tariffs to impact your business, customers, and employees.

Economic Impact:
While the economic impact will unfold in the days and weeks ahead, Canada and Mexico are America’s two largest trading partners by a wide margin. Total trade with the two countries topped $1.8 trillion in 2023, representing about one-third of total U.S. trade.

Canada and Mexico are also the largest and/or second largest trading partners for nearly every state. Canada is the top trading partner of 34 states. Mexico is top trading partner for five states and is the first, second, or third-largest trading partner for more than 30 U.S. states. Therefore, the adverse local impact on American workers, families and communities is widely expected to be extensive.

See how each state benefits from trade, including each state’s top exports and numbers of jobs supported here: MAP

Note: This memo was created for members of the U.S. Chamber of Commerce.

Source: U.S. Chamber of Commerce