Tariff Updates: USMCA Exemptions and Potash Duties for Mexico Imports
March 7, 2025
Tariff Updates: USMCA Exemptions and Potash Duties for Canada Imports
The U.S. government has announced updates to tariff measures affecting imports from Canada, effective March 7, 2025. These updates follow Executive Orders aimed at addressing the flow of illicit drugs across the Northern border and impact goods qualifying for the United States-Mexico-Canada Agreement (USMCA) as well as potash imports.
Key Details:
- Affected Region: Canada
- Tariff Changes: Goods qualifying for USMCA are exempt from additional duties imposed on March 4, 2025.
- Potash: Potash from Canada qualifying for USMCA is exempt from the new duty rates, while non-qualified potash will face a reduced additional duty of 10%.
Key Exemptions and Changes
- USMCA Exemption:
- Effective March 7, 2025, goods entered under USMCA will be exempt from additional duties implemented on March 4, 2025.
- New HTSUS classifications have been established for goods qualifying for USMCA.
- Potash from Canada that qualifies for USMCA will be exempt from the 25% additional duty. Non-qualified potash will be subject to an additional 10% duty instead.
How to Stay Compliant
- Review HTS Codes: Check the updated HTSUS classifications, especially for potash and USMCA-eligible goods.
- Confirm USMCA Eligibility: Ensure that your goods meet the USMCA requirements to qualify for duty exemptions.
- Monitor Tariff Changes: Stay informed about ongoing tariff updates, particularly for Canadian products.
Being prepared for these tariff changes is essential to ensuring compliance and avoiding unnecessary costs. Want to stay updated on the latest tariff news? Subscribe to our newsletter!
If you have any questions or need further clarification, please contact your Western Overseas agent.
