IEEPA Canada Tariffs Begin March 4

4 March 2025 01 MINS. Read USA

Updated March 11, 2025

On March 6, 2025, U.S. Customs and Border Protection (CBP) published a Federal Register notice, Implementation of Additional Duties on Products of Canada Pursuant to the President’s Executive Order 14193, Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border.

On March 6, 2025, the President amended the tariff action on products of Canada to exempt USMCA-claimed goods and reduce the duty amount on non-USMCA Potash to 10% starting March 7. The amendment is not retroactive.

Effective Date

Products of Canada that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Standard Time on March 4, 2025.

Additional HTSUS

9903.01.10 – 25% Duty

The Harmonized Tariff Schedule of the U.S. (HTSUS) subheading applies the 25% duty rate.

9903.01.13 – 10% Duty

Crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606(a)(3)

9903.01.15 – 10% Duty

Potash that is a product of Canada, as provided for in U.S. note 2(l) to this subchapter – Effective March 7, 2025

Exclusions

9903.01.11

Articles the product of Canada that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, as provided for in U.S. note 2(k) to this subchapter

9903.01.12

Articles the product of Canada that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds

9903.01.14

Articles that are entered free of duty under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTS, as related to the USMCA – Effective March 7, 2025

Misc

The tariffs are in addition to all other applicable duties, taxes, fees, exactions, and charges.
De Minimis continues to be available for articles covered by HTSUS 9903.01.10 and 9903.01.13 that are otherwise eligible for the exemption, but will cease to be available for such articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue.
The additional duties imposed by headings 9903.01.10 and 9903.01.13 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (“CBP”), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in Canada), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Canada), less the cost or value of such products of the United States, as described.
Products of Canada include both goods of Canada under the rules set forth in part 102, title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Canada was the last country of substantial transformation prior to importation into the United States.