Tariff Tensions: Updates on US-Canada-China-Mexico Trade Relations

25th February

Copper Imports

On the 25th of February 2025, an Executive Order is signed, which instructs the Secretary of Commerce to commence an investigation into the national security impact of copper imports. A report is to be delivered to the President in 270 days which will include potential remedial measures. Section 232 of the Trade Expansion Act is used as the legal basis.

27th February

Update on Canada, China and Mexico Tariffs

On the 27th of February 2025, Trump posted on Truth Social stating that “drugs are still pouring into our country” and from which “more than 100,000 people died last year”.

In response, Trump states that “until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled”.

In relation to the tariffs already effective on China, Trump indicates the rate will rise to 20% stating “China will likewise be charged an additional 10% Tariff on that date”.

1st March

Timber, Lumber and Derivative Imports

On the 1st of March 2025, an Executive Order is signed, which instructs the Secretary of Commerce to commence an investigation into the national security impact of timber, lumber and derivative imports. A report is to be delivered to the President in 270 days which will include potential remedial measures. Section 232 of the Trade Expansion Act is used as the legal basis.

2nd March

Amendments to previous EOs

On the 2nd of March 2025, President Trump signs 3 Executive Orders, to amend provisions in the previous Executive Orders imposing tariffs on Canada and Mexico (for which the pause elapses in 2 days) and China.

• Duty exemption for de minimus imports will now apply to products of Canada;
• Duty exemption for de minimus imports will now apply to products of Canada;
• The additional duty rate on products of China will increase from 10% to 20%.

4th March

Tariffs Effective

At midnight on the 4th of March 2025, policies on Canada, Mexico and China become effective.

• Temporary suspension of an additional 25% tariff on products of Canada, introduced in EO 14197 elapses;
• Temporary suspension of an additional 25% tariff on products of Mexico, introduced in EO 14198 elapses;
• The 10% additional tariff on products of China, introduced in EO 14195 is increased to 20%.

China Responds

On the 4th of March 2025, China responds to the additional 10% placed on products of China at import to the US. The State Tariff Council Commission issues an announcement placing tariffs of 10% - 15% on US products such as chicken, wheat, pork and vegetables.

Canada Responds

On the 4th of March 2025, following the imposition of tariffs on US goods, Prime Minister Trudeau held a press briefing, stating that “Canada will be implementing 25% tariffs against $155bn worth of American goods, starting with tariffs on $30bn worth of goods immediately, and tariffs of $125bn worth of American products in 21 days time”.

Tariffs Paused for USMCA

On the 6th of March, President Trump posted to Truth Social, indicating that he spoke to President Sheinbaum and has agreed to a pause on tariffs for products that fall under the USMCA agreement. The pause will last until April 2nd when Reciprocal Tariffs become effective.

President Trump clarified that he has done this “as an accommodation, and out of respect for President Sheinbaum”.

Following the announcement to pause the tariffs, President Trump signs two Executive Orders to amend the imposition of the tariffs for products covered under USMCA.