IEEPA tariffs imposed on Canada, Mexico and China

On 1 February 2025 President Donald J. Trump signed three executive orders imposing IEEPA duties on imports from Canada, Mexico and the People’s Republic of China: Executive Order 14193 (“Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border”), Executive Order 14194 (“Imposing Duties to Address the Situation at Our Southern Border”) and Executive Order 14195 (“Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China”), all published in the Federal Register on 7 February 2025.¹²³ The orders impose an additional 25% ad valorem duty on Canadian imports (with Canadian energy resources at 10%), 25% on Mexican imports and 10% on Chinese imports, effective at 12:01 a.m. eastern time on 4 February 2025, with an in-transit exemption for goods loaded onto a vessel or in transit on the final mode of transport before 12:01 a.m. eastern time on 1 February 2025.¹²³ Each order declares a national emergency under the National Emergencies Act and invokes the International Emergency Economic Powers Act (50 U.S.C. § 1702(a)(1)(B), the “regulate … importation” verb), § 604 of the Trade Act of 1974 (19 U.S.C. § 2483) and 3 U.S.C. § 301; the Canada and China orders declare their own emergencies, while the Mexico order leans on Proclamation 10886 of 20 January 2025.⁴⁵⁶ Each order also withdraws duty-free de minimis treatment under 19 U.S.C. § 1321 for covered articles.⁷ Canada’s Department of Finance announced 25% tariffs on C$155 billion of US goods in two tranches (C$30 billion on 4 February, C$125 billion 21 days later); Mexican President Claudia Sheinbaum directed her economy secretary to implement tariff and non-tariff measures the same day.⁸⁹

1. IEEPA imposes neither the investigation requirement of § 232 of the Trade Expansion Act, 19 U.S.C. § 1862(b), nor the consultation and finding procedures of § 301 of the Trade Act of 1974, 19 U.S.C. § 2411(b).¹⁰¹¹ IEEPA does not on its face authorise tariffs; the orders rely on the § 1702(a)(1)(B) “regulate” verb, a question being litigated in V.O.S. Selections v. Trump and parallel cases.⁴

2. For Canada and Mexico, the additional duties stack on top of — and override — duty-free treatment for qualifying goods under the USMCA, implemented at Pub. L. 116-113 and codified at 19 U.S.C. ch. 29.¹² Each order provides the new duty is “in addition to any other duties, fees, exactions, or charges applicable to such imported articles.”¹

3. Cross-border supply chains in automotive, agricultural and energy goods carry rate exposure in both directions. The elimination of de minimis treatment under 19 U.S.C. § 1321 for covered articles sweeps in cross-border e-commerce that had previously cleared duty-free under the $800 per-shipment exemption.⁷