IEEPA Tariffs On Canada Increased To 35%

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On February 1, 2025, President Trump issued an Executive Order imposing 25% duties on all goods from Canada and 10% on certain energy products.

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TRUMP ADMINISTRATION TRADE ALERT – IMPORTS
HEADLINE	IEEPA Tariffs on Canada Increased to 35%
DATE	July 31, 2025
AGENCY	Department of Commerce, Department of Homeland Security, Customs and Border Protection (CBP)
EFFECTIVE DATE	August 1, 2025 at 12:01 a.m. Eastern Time
BACKGROUND	On February 1, 2025, President Trump issued an Executive Order imposing 25% duties on all goods from Canada and 10% on certain energy products. On February 3, 2025, Canada negotiated a 30-day extension with President Trump until March 4. On March 4, 2025, the additional 25% IEEPA tariffs went into effect for goods from Canada. Effective March 7, 2025, goods that comply with the USMCA were exempted from the additional 25% tariffs.
DETAILS	In an Executive Order dated July 31, 2025, the Trump Administration has increased the 25% tariffs on goods from Canada to 35%, citing "Canada's lack of cooperation in stemming the flood of fentanyl and other illicit drugs across our northern border." TRANSSHIPMENT: Non-USMCA goods which are determined by CBP to have been transshipped to evade the tariffs will be subject to: (1) 40% duties instead of 35%; (2) "any other applicable or appropriate fine or penalty, including those assessed under 19 U.S.C. 1592," the statute regulating CBP penalties; and (3) all other applicable duties, fees, taxes, exactions, or charges. The order forbids CBP from mitigating penalties assessed for transshipment. The Secretaries of Commerce and Homeland Security are directed to publish a list every 6 months of countries and specific facilities found to be circumventing the tariffs through transshipment. STACKING PROVISIONS: The EO does not affect the stacking provisions in Executive Order 14289 (Apr. 29), amended by Proclamation 10947 (June 3), which prioritizes: (1) automobile tariffs; (2) steel/aluminum tariffs; and (3) Canada/Mexico tariffs.
BASIS	International Emergency Economic Powers Act (IEEPA), 50 U.S. Code § 1701 et seq.; the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA); section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483); and section 301 of title 3, United States Code.
HTS/ PRODUCTS	All products, except for: Products eligible for USMCA entered under 9903.01.14 (0%) Energy products described in 9903.01.13 (10%) Potash under 9903.01.15 (10%)
COUNTRY	Canada
CITE	White House – Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border CBP – CSMS # 65798609 – Update – Additional Duties on Imports from Canada

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IEEPA Tariffs On Canada Increased To 35%

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