Trade & Tariffs
Presidential Executive Orders
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January 20, 2025 (W.H. Link) - This order reiterates the Trump Administration’s commitment to considering trade policy as a critical component to national security.
The order directs the Secretaries of Commerce and Treasury, along with the U.S. Trade Representative (USTR), to investigate the root causes of trade deficits and assess their economic and national security implications.
It also instructs the Secretaries of Treasury, Commerce, and Homeland Security to assess the establishment of an External Revenue Service (ERS) to collect tariffs, duties, and other foreign trade-related revenues.
The order requires the USTR to commence public consultation process in advance of the July 2026 review of USMCA. It also orders leadership to utilize existing law to review other unfair trade practices. The order specifically cites a variety of laws including: sections 71 through 75 of title 15, United States Code; sections 1337, 1338, 2252, 2253, and 2411 of title 19, United States Code; section 1701 of title 50, United States Code.
The USTR is additionally tasked with evaluating measures to counter currency manipulation and exploring new or revised bilateral and sector-specific trade agreements with other countries. Critically, trade leadership of the executive branch is further directed to review existing Section 301 tariffs on Chinese imports and consider potential additional tariff modifications as needed.
The Commerce Secretary is instructed to review the application of antidumping and countervailing duty (AD/CVD) laws.
Leadership is required to submit reports to President Trump detailing the progress and status of the issues outlined in the order, as well as additional directives within its text. Most reports are due by April 1, 2025, with one report from the Director of the Office of Management and Budget due by April 30, 2025.
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February 1, 2025 (W.H. Link (coming soon) - View Fact Sheet) - The U.S. government issued several executive orders imposing tariff measures against China, Canada, and Mexico in response to their alleged roles in facilitating illicit drug flows, organized crime, and illegal immigration into the United States. These tariffs are set to take effect on February 4, 2025.
Tariff Actions on China
A blanket 10% ad valorem tariff is imposed on all Chinese imports, effective February 4, 2025.
Exemptions:
Goods already in transit before February 1, 2025, will be exempt if properly certified with U.S. Customs and Border Protection (CBP).
Duty-free de minimis exemptions under 19 U.S.C. 1321 are revoked, closing a loophole that allowed small-value shipments to enter the U.S. without tariffs.
No tariff refunds (drawback) will be available for affected goods.
Foreign Trade Zone Restrictions:
Chinese goods entering U.S. foreign trade zones must be admitted as "privileged foreign status", meaning they cannot be reclassified to avoid tariffs before entering the market.
Potential Escalation:
If China retaliates with counter-tariffs on U.S. goods, the U.S. may further increase tariffs or expand product coverage.
Monitoring & Potential Removal:
Tariffs may be lifted if China demonstrates full cooperation in stopping fentanyl exports and related money laundering.
Status of Current Tariffs:
These tariffs will be levied in addition to existing tariffs on Chinese imports (many stemming from Section 301 investigations). The Administration is conducting reviews of existing Section 301 tariffs and will have reports by April 1, 2025.
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NOTE: Per announcement from the White House, there is a one-month delay to the implementation of tariffs. Read more here.
February 1, 2025 (W.H. Link (coming soon) - View Fact Sheet) - The U.S. government issued several executive orders imposing tariff measures against China, Canada, and Mexico in response to their alleged roles in facilitating illicit drug flows, organized crime, and illegal immigration into the United States. These tariffs are set to take effect on February 4, 2025.
Tariff Actions on Mexico
A 25% ad valorem tariff is imposed on all Mexican imports, effective February 4, 2025.
Exemptions:
Goods in transit before February 1, 2025, will be exempt if importers certify compliance with CBP.
Foreign Trade Zone Restrictions:
Mexican goods in U.S. foreign trade zones must be designated "privileged foreign status", preventing tariff evasion through reclassification.
No Drawback (Refunds):
No tariff refunds (drawbacks) are available for affected Mexican imports.
Revocation of Duty-Free De Minimis Treatment:
Mexican shipments that previously qualified for duty-free entry under 19 U.S.C. 1321 will now be subject to tariffs.
Potential Escalation:
If Mexico retaliates with tariffs on U.S. exports, the U.S. may further increase tariffs.
Monitoring & Potential Removal:
Tariffs may be lifted if Mexico demonstrates full cooperation in dismantling cartel operations, securing the border, and stopping drug trafficking.
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NOTE: Per announcement from the White House, there is a one-month delay to the implementation of tariffs. Read more here.
February 1, 2025 (W.H. Link - View Fact Sheet) - The U.S. government issued several executive orders imposing tariff measures against China, Canada, and Mexico in response to their alleged roles in facilitating illicit drug flows, organized crime, and illegal immigration into the United States. These tariffs are set to take effect on February 4, 2025.
Tariff Actions on Canada
A 25% ad valorem tariff is imposed on all Canadian imports, effective February 4, 2025.
Lower Tariffs on Energy Products:
A reduced 10% tariff applies to energy and energy-related resources imported from Canada.
Exemptions:
Goods already in transit before February 1, 2025, will be exempt if importers certify compliance with CBP.
Foreign Trade Zone Restrictions:
Canadian goods in U.S. foreign trade zones must be designated "privileged foreign status", preventing tariff evasion through reclassification.
No Drawback (Refunds):
U.S. companies cannot claim tariff refunds (drawbacks) on affected Canadian imports.
Revocation of Duty-Free De Minimis Treatment:
Small-value Canadian shipments that previously qualified for duty-free entry under 19 U.S.C. 1321 will now be subject to tariffs.
Potential Escalation:
If Canada retaliates with tariffs on U.S. exports, the U.S. may further increase Canadian tariffs.
Canada announced on February 1 its intent to initiate retaliatory tariffs of ~$155 billion, specifically targeting Republican states. On February 2, Canada announced a 25% tariff on ~$30 billion imports from the United States.
Canada & Mexico currently appear interested in a coordinated trade response to the United States.
Monitoring & Potential Removal:
Tariffs may be lifted if Canada demonstrates full cooperation in dismantling drug trafficking networks and improving enforcement at the border.
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February 5, 2025 (W.H. Link) - This Executive Order modifies a previous order issued on February 1, 2025, concerning tariffs on goods linked to the synthetic opioid supply chain from China. The amendment specifically addresses the application of duty-free de minimis treatment under U.S. trade law. While de minimis treatment—allowing low-value imports to enter the U.S. without duties—will remain available for covered articles, it will be revoked once the Secretary of Commerce confirms that systems are in place to fully process and collect applicable tariffs on these goods.
The order ensures that its implementation aligns with existing legal authorities and budgetary constraints. It also clarifies that it does not create any enforceable legal rights against the U.S. government or its agencies. This amendment strengthens efforts to regulate imports tied to the synthetic opioid crisis while ensuring the government can effectively impose and collect duties on such goods.
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February 10, 2025 - (W.H. Link) - This executive order reinstates and strengthens Section 232 tariffs on steel and aluminum imports, reversing prior exemptions and alternative agreements that were deemed ineffective in protecting U.S. national security and domestic steel production. The decision follows a review by the Secretary of Commerce, who determined that rising imports, especially from Canada, Mexico, the EU, Japan, South Korea, and other previously exempted countries, have undermined the original objectives of the tariffs. Steel imports surged to nearly 30% of U.S. consumption in 2024, while global excess capacity—driven largely by China—has continued to rise, threatening the stability of U.S. steel and aluminum industries.
Effective March 12, 2025, all exemptions and alternative tariff agreements will be terminated, and a full 25% ad valorem tariff will apply to steel and derivative products from all countries. The proclamation also eliminates the product exclusion process, which had allowed importers to bypass tariffs on certain steel products, arguing that these exclusions weakened domestic production. The "melt and pour" requirement for steel from Mexico will remain in place to curb transshipment, and Customs and Border Protection (CBP) is directed to prioritize enforcement against tariff evasion. These measures aim to restore the 80% capacity utilization target for domestic steel production, enhance national security, and counter the impact of global steel overcapacity and unfair trade practices.
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February 11, 2025 (W.H. Link) - This executive order significantly raises tariffs on imported aluminum to protect U.S. national security and address ongoing challenges posed by global excess capacity and unfair trade practices. The order increases tariffs on aluminum and derivative aluminum products from 10% to 25% ad valorem, eliminating previous exemptions and alternative agreements with Argentina, Australia, Canada, Mexico, the European Union, and the United Kingdom. This decision is based on findings that imports from these countries have surged, undermining U.S. aluminum production, leading to smelter closures, and keeping capacity utilization well below the recommended 80% threshold.
The order cites China and Russia’s role in fueling the global aluminum glut and highlights concerns over Chinese investments in Mexico, which have enabled the transshipment of aluminum into the U.S. while avoiding tariffs. Additionally, the proclamation terminates product exclusion processes, ensuring that foreign producers cannot evade tariffs by shifting production downstream into derivative aluminum products.
The Customs and Border Protection (CBP) will enhance enforcement, penalizing misclassification of aluminum imports, monitoring transshipment, and ensuring tariff revenue is fully collected. The U.S. International Trade Commission and the Department of Commerce will oversee tariff implementation and may expand coverage to additional derivative aluminum products. These measures aim to revitalize domestic aluminum production, counteract unfair trade practices, and strengthen U.S. industrial and economic security.