Companies that import from Canada, Mexico or the People’s Republic of China should take steps now to minimize the impact of recently announced tariffs.

In an executive order signed on Feb. 1, 2025, President Trump imposed tariffs on U.S. imports that are products of Canada, China and Mexico ranging from 10 percent to 25 percent above normal duties.

• Products from Canada and Mexico are subject to an additional 25 percent ad valorem rate of duty, with certain energy products from Canada subject to a lower tariff rate of 10 percent.

• Products from China are also subject to an additional 10 percent tariff rate.

The tariffs on Canada and Mexico will be delayed by one month to allow the parties to negotiate, according to announcements from the Trump Administration.

If the tariffs are not canceled, they will be imposed on goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time of the date set. A Federal Register Notice (FRN) will provide more specifics, including further details on relevant updates to the Harmonized Tariff Schedule of the United States (HTSUS). 

How to Protect Your Interests

• If you import merchandise from Canada or Mexico, you should consider importing as much product as possible within the next 30 days while the duties are delayed.

• You may consider importing into a bonded warehouse while the details of the tariffs are finalized.

• Monitor news about court challenges and consider joining an action at the U.S. Court of International Trade to challenge the legality of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA). In a successful challenge. companies may obtain an injunction prohibiting the collection of duties. There is likely to be a large coalition of U.S. importers joining in such a lawsuit.

Background on the Law of Tariffs

The U.S. Constitution entrusts Congress, and not the executive branch, with authority over U.S. tariffs. In recent years, Congress has delegated its authority to the executive branch through the enactment of legislation like Section 301 and Section 232 (statutes upon which President Trump relied to impose tariffs in his last administration).

To support his current tariffs, President Trump has invoked yet another statute, the International Emergency Economic Powers Act (IEEPA). This action will likely face court challenges that could set an important precedent.

In 2018, more than 4,000 lawsuits were filed to challenge the use of Section 301. Lawyers from Fox Rothschild represented 90 plaintiffs. We are likewise positioned to represent clients in the anticipated challenge to the untested use of IEEPA for imposing import tariffs.

For more information on this alert, contact Lizbeth R. Levinson at 202.794.1182 or llevinson@foxrothschild.com; Brittney R. Powell at 202.794.1186 or bpowell@foxrothschild.com; or any member of Fox Rothschild’s International Trade Practice Group.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the author(s) and not necessarily this law firm or its clients. Prior results do not guarantee a similar outcome.