ab ovo

Canada and Mexico IEEPA tariffs paused for 30 days

On 3 February 2025 President Donald J. Trump signed Executive Order 14197, “Progress on the Situation at Our Northern Border,” and Executive Order 14198, “Progress on the Situation at Our Southern Border,” each amending the corresponding 1 February 2025 IEEPA tariff order (EO 14193 for Canada and EO 14194 for Mexico) to defer the additional 25% duties for 30 days, until 4 March 2025.1234 The pause orders amend the underlying orders’ effective dates but do not revoke the national-emergency declarations on which the duties rest, leaving the IEEPA authority intact for subsequent reinstatement. The additional 10% IEEPA duty on Chinese imports under Executive Order 14195 took effect as scheduled at 12:01 a.m. eastern time on 4 February 2025.5 Prime Minister Justin Trudeau announced a package of Canadian commitments — a CAN$1.3 billion border plan, the deployment of nearly 10,000 frontline personnel, a Canada-U.S. Joint Strike Force on organised crime, fentanyl and money laundering, a CAN$200 million intelligence directive and the appointment of a fentanyl czar.6 Mexican President Claudia Sheinbaum announced the deployment of 10,000 National Guard personnel to Mexico’s northern border to prevent fentanyl trafficking.7

  1. Because EO 14197 and EO 14198 amend the underlying orders’ effective dates rather than revoke them or terminate the underlying national-emergency declarations under § 202 of the National Emergencies Act, 50 U.S.C. § 1622, the duties can be reinstated by a further amending order without a fresh declaration.8

  2. Pre-pause USMCA duty treatment is restored for qualifying Canadian and Mexican goods through the 4 March 2025 window, under Pub. L. 116-113 and 19 U.S.C. ch. 29.9 Importers that pre-positioned inventory ahead of 4 February face holding costs but not the additional IEEPA duty during the window.

  3. The Canadian and Mexican commitments are announced political undertakings, not terms of EO 14197 or EO 14198 and not treaty obligations. EO 14197 § 2 frames the pause as conditioned on continued progress; assessment of that progress shapes whether the duties take effect on 4 March 2025 or the pause is extended.1

Footnotes

  1. Executive Order 14197, “Progress on the Situation at Our Northern Border,” 90 Fed. Reg. 9183 (Feb. 10, 2025) (FR Doc. 2025-02478). https://www.federalregister.gov/documents/2025/02/10/2025-02478/progress-on-the-situation-at-our-northern-border 2

  2. Executive Order 14198, “Progress on the Situation at Our Southern Border,” 90 Fed. Reg. 9185 (Feb. 10, 2025) (FR Doc. 2025-02479). https://www.federalregister.gov/documents/2025/02/10/2025-02479/progress-on-the-situation-at-our-southern-border

  3. Executive Order 14193, “Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border,” 90 Fed. Reg. 9113 (Feb. 7, 2025) (FR Doc. 2025-02406). https://www.federalregister.gov/documents/2025/02/07/2025-02406/imposing-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border

  4. Executive Order 14194, “Imposing Duties to Address the Situation at Our Southern Border,” 90 Fed. Reg. 9117 (Feb. 7, 2025) (FR Doc. 2025-02407). https://www.federalregister.gov/documents/2025/02/07/2025-02407/imposing-duties-to-address-the-situation-at-our-southern-border

  5. Executive Order 14195, “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China,” 90 Fed. Reg. 9121 (Feb. 7, 2025) (FR Doc. 2025-02408). https://www.federalregister.gov/documents/2025/02/07/2025-02408/imposing-duties-to-address-the-synthetic-opioid-supply-chain-in-the-peoples-republic-of-china

  6. Office of the Prime Minister of Canada, “Statement by the Prime Minister of Canada,” 3 February 2025 (CAN$1.3 billion border plan; nearly 10,000 frontline personnel; Canada-U.S. Joint Strike Force; CAN$200 million intelligence directive; fentanyl czar appointment).

  7. President Claudia Sheinbaum statement, 3 February 2025 (deployment of 10,000 National Guard personnel to Mexico’s northern border).

  8. National Emergencies Act § 202, 50 U.S.C. § 1622 (termination of national emergency). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section1622&edition=prelim

  9. United States-Mexico-Canada Agreement Implementation Act, Pub. L. 116-113, 134 Stat. 11 (2020), codified at 19 U.S.C. ch. 29. https://uscode.house.gov/view.xhtml?path=/prelim@title19/chapter29&edition=prelim