The U.S. government has imposed new tariffs on imports from Canada and China, effective February 4, 2025. These duties come as part of executive orders signed by the President on February 1, 2025, targeting illicit drug flows from Canada and synthetic opioid supply chains from China.
Tariffs on Canadian Imports
Under the new policy:
A 25% tariff applies to most Canadian imports, except energy products.
A 10% tariff applies to energy-related imports, including crude oil and natural gas.
Exemptions apply for humanitarian goods such as food and medicine.
Mail shipments from Canada now require formal entry documentation regardless of value.
Tariffs on Chinese Imports
The U.S. is also targeting China and Hong Kong, citing their alleged failure to control precursor chemicals used in synthetic opioid production:
A 10% tariff applies to nearly all Chinese imports.
Similar to Canada, humanitarian goods are exempt from the tariffs.
The tariffs cover products that entered U.S. transit before February 1 but allow a brief grace period for imports in transit before that date.
The newly announced 10% tariff is distinct and is not an increase to the existing Section 301 duties. Therefore, Chinese imports subject to the highest Section 301 tariff rate of 25% will now incur a cumulative tariff rate of 35% (the original 25% under Section 301 plus the new 10% tariff). Similarly, goods previously subject to a 7.5% Section 301 tariff will now face a total tariff rate of 17.5%.
Goods subject to the China and Canada tariffs are excluded from de minimis. CBP will require formal entry for all mail shipments from China and Canada.
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Update 02/03
Per CSMS # 63991510, CSMS message 63988467 is retracted with respect to imports from Canada. CBP will not apply the additional duties outlined in the President's Executive Order titled Imposing Duties to Address the Flow of Illicit Drugs Across our Northern Border, dated February 1, 2025, at this time.
Canadian Prime Minister Justin Trudeau and U.S. President Donald Trump have agreed to delay the planned 25% tariffs on U.S. imports from Canada for 30 days following a late-afternoon call. In exchange, Canada will implement a $1.3 billion border security plan, which includes deploying new helicopters, advanced surveillance technology, and additional personnel to curb fentanyl trafficking.
Trudeau also committed to appointing a "Fentanyl Czar," classifying cartels as terrorist organizations, and launching a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl distribution, and money laundering. Additionally, Canada will invest $200 million in a new intelligence directive to enhance tracking and enforcement efforts.
This follows a similar 30-day delay on the 25% tariff on Mexico, after Mexico’s President Claudia Sheinbaum agreed to deploy 10,000 troops to address fentanyl smuggling and illegal immigration.
Meanwhile, the additional 10% tariff on Chinese imports, set to take effect at 12:01 a.m. ET on February 4, remains unchanged. U.S. Customs and Border Protection (CBP) issued trade guidance on the new Chinese tariffs earlier today.