Canada Imposing 25% Retaliatory Tariffs on US Goods, Tariffs on Mexico Paused for One Month

Canadian Tariffs on US Goods

In response to the US announcing 25% tariffs on Canadian goods, Canada has announced The United States Surtax Order (2025) to apply a 25% tariff on goods originating from the US, effective February 4, 2025.

A 25% surtax will be levied on the value for duty of applicable goods, as determined under sections 47 to 55 of the Customs Act. This surtax applies to both commercial and personal imports from the U.S., including goods classified under Chapter 99 of the Customs Tariff, with specific exceptions. Exemptions include goods temporarily imported for repair or re-imported after repair, and goods classified under Chapter 98 (excluding certain items).

Additional Information: For further details, please refer to the relevant CBSA Memoranda and the Customs Notice 25-03.

In the meantime, we recommend reviewing your supply chains and considering potential impacts on your operations. Our team is here to support you during this transition. Please do not hesitate to reach out with any questions or for assistance in understanding how these tariffs may affect your business.

Tariffs on Mexico Paused for One Month

Following a conversation between US President Donald Trump and Mexico President Claudia Sheinbaum, an agreement has been made to pause the proposed 25% tariffs on goods imported to the US from Mexico.

This one-month delay comes following the agreement from Mexico to provide 10,000 Mexican soldiers at the border to address concerns about the flow of fentanyl and illegal migrants into the US. During the one-month pause on tariffs that were to be implemented on February 4, discussions will continue between the US and Mexico.