If you import goods from Mexico, Canada, or China, your costs just increased. New tariffs are officially in place, and there’s no grace period—meaning anything entering the U.S. after March 4 is subject to the new duties. Let’s break down what this means for your supply chain.

Mexico & Canada: 25% Tariffs with Limited Exemptions

As of March 4, 2025, a 25% tariff applies to most imports from Mexico and Canada. The exception? Energy products from Canada are subject to a 10% tariff instead.

A few exemptions exist, including personal-use goods, humanitarian donations, and specific Chapter 98 HTSUS entries. However, there’s no exemption for in-transit shipments, meaning goods already on their way when the rule went into effect are still subject to the higher rates.

If you’re using a Foreign Trade Zone (FTZ), goods admitted after March 4 must be classified under privileged foreign status, which means they’ll be subject to the tariff rate effective at the time of entry into the zone.

China: Retroactive 20% Tariffs and Limited Exceptions

On top of that, the tariff on Chinese imports just doubled—from 10% to 20%. Even more concerning? It’s retroactive. If you’ve already paid 10%, you now owe the difference unless your goods were already in transit before February 1, 2025. That exemption ends March 7, and everything receives the full 20% rate.

Steel & Aluminum: New Tariffs and 200% Russian Metal Duties

If you deal in steel and aluminum products, expect higher costs. As of March 12, a 25% tariff applies to more steel and aluminum derivatives. Adding to the updates, anything with Russian-origin aluminum or steel is now subject to a 200% tariff.

To complicate things further, importers must now report the primary and secondary smelt locations for aluminum products, so expect additional documentation requirements.

How Importers Should Respond

These changes aren’t just raising costs—they’re disrupting supply chains and causing immediate ripple effects. Canada and China have already announced retaliatory tariffs, hitting U.S. agriculture and export sectors. If you’re an importer, now’s the time to:

• Evaluate sourcing alternatives to avoid tariff-heavy regions.
• Explore FTZ strategies to delay or minimize duty payments.
• Ensure accurate classification to maximize exemptions and avoid unnecessary costs.

At JA Group, we work with importers every day to stay ahead of changing trade regulations and minimize tariff impact. Let’s discuss strategies to keep your freight moving without unexpected costs if your business is affected. Contact us today to discuss compliance strategies and cost-saving solutions.