On March 6, 2025, following discussions with the heads of major U.S. automakers, the White House announced a one-month suspension of the IEEPA tariffs on Mexico and Canada for certain USMCA-originating automotive sector products. The White House subsequently expanded that temporary suspension to all products from Canada and Mexico that satisfy USMCA’s “origination” requirements. Products that qualify for exemption from “ordinary” customs duties under USMCA’s terms and requirements will now be exempt from the IEEPA tariffs for one month, to facilitate supply chain adjustments and onshoring of manufacturing operations. See below for language that is a direct quotation from the White House Fact Sheet:
- Duties imposed to address the flow of illicit drugs across our borders are now:
- 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
- A lower 10% tariff on those energy products imported from Canada that fall outside the USMCA preference.
- A lower 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA preference.
- No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.