Tariff News Update – March 2025
Key Regulatory Changes for U.S. Imports of Aluminum, Steel, and Goods from Mexico and Canada
March 2025 has brought a series of significant tariff updates impacting a wide range of imported goods. The following summary outlines six key changes recently announced by U.S. Customs and Border Protection (CBP), based on Executive Orders and Presidential Proclamations affecting aluminum, steel, and country-specific imports from Mexico and Canada.
1. 25% Tariff on Aluminum Imports – Effective March 12, 2025
Under Presidential Proclamation 10895, the U.S. will apply a 25% duty on aluminum articles and derivative aluminum products from all countries starting March 12, 2025.
Key Classifications:
– HTS 9903.85.02 / 85.04 / 85.07 – Standard aluminum and derivatives (25%)
– HTS 9903.85.08 – Aluminum derivatives not in Chapter 76 (25%, based on aluminum content)
– HTS 9903.85.09 – 0% duty for items processed abroad from U.S.-sourced aluminum
Russia-specific aluminum remains subject to 200% tariffs (HTS 9903.85.67 / 85.68). Additional smelt and cast origin reporting is required. No drawback is permitted, and quota entries must be finalized by March 11, 2025.
2. 25% Tariff on Most Goods from Mexico – Effective March 4, 2025
Per Executive Orders 14194, 14198, and a March 2 directive, a 25% additional duty applies to most goods imported from Mexico under HTS 9903.01.01.
Exclusions:
– Humanitarian donations (HTS 9903.01.02)
– Informational materials (HTS 9903.01.03)
Chapter 98 goods are generally exempt, except for processed or assembled goods as described in 9802. Entries into Foreign Trade Zones must be designated as ‘privileged foreign status’. No drawback is permitted. The de minimis exemption remains available.
3. Tariffs on Canadian Imports – Effective March 4, 2025
Under Executive Orders 14193 and 14197, most Canadian-origin goods are subject to a 25% duty (HTS 9903.01.10), while energy/resource imports are subject to a 10% duty (HTS 9903.01.13).
Exclusions:
– Humanitarian donations (HTS 9903.01.11)
– Informational materials (HTS 9903.01.12)
Select Chapter 98 goods are exempt, with exceptions for goods processed or assembled in Canada. FTZ goods admitted on or after March 4 must enter under privileged foreign status. No drawback is available; de minimis rules still apply.
4. USMCA Exemption & Potash Update (Mexico) – Effective March 7, 2025
Effective March 7, 2025, goods from Mexico that qualify under the USMCA are now exempt from the 25% tariff under HTS 9903.01.01. These goods should be reported under HTS 9903.01.04.
Potash imports from Mexico are also exempt if USMCA-eligible. Otherwise, a reduced 10% duty applies under HTS 9903.01.05.
5. USMCA Exemption & Potash Update (Canada) – Effective March 7, 2025
Similarly, effective March 7, 2025, Canadian goods qualifying under the USMCA are exempt from duties under HTS 9903.01.10 (25%) and 9903.01.13 (10%), and should be reported under HTS 9903.01.14.
Canadian potash not eligible for USMCA receives a reduced 10% duty under HTS 9903.01.15.
6. 25% Tariff on Steel Imports – Effective March 12, 2025
Presidential Proclamation 10896 enacts a 25% duty on steel articles and derivatives from all countries beginning March 12, 2025.
Key Classifications:
– HTS 9903.81.87 / .89 / .90 – General steel and derivatives (25%)
– HTS 9903.81.91 – 25% duty based on steel content (non-Ch. 73 items)
– HTS 9903.81.92 – 0% duty on items processed abroad from U.S.-melted and poured steel
Melt and pour origin reporting is mandatory using ISO codes. For unknown content value, entire entry value is used. No drawback permitted. FTZ provisions apply as outlined.
