Pursuant to Notices issued by Department of Homeland Security Secretary on Monday, March 3, 2025, United States Customs and Border Protection (“CBP”) will begin collecting a duty of 25% on most products of Mexico and Canada (“First CAMX Tariffs”) imported into the United States.
Here is what you need to know about the First CAMX Tariffs:
- Effective at 12:01 AM eastern standard time on March 4, 2025.
- Assessed regardless of the current free trade agreement between the U.S., Mexico and Canada (“USMCA”).
- Subject to additional rules that apply the 25% duty to goods entered into U.S. Foreign Trade Zones.
- Separate from any other applicable tariffs (tariffs on steel and aluminum expected to begin on March 12th and will be assessed in addition to the First CAMX Tariffs).
- Not eligible for duty drawback.
- There is no exclusion process.
There are very few limitations to the First CAMX Tariffs. Notable limitations of the First CAMX Tariffs include:
- De Minimis Imports – Individual shipments of Mexican or Canadian products valued at less than $800 USD are exempted from the CAMX Tariff.
- Maquiladora Arrangements – Jackson Walker believes careful study needs to be conducted to determine whether an importer will pay the 25% duty on the value of the assembled product less United States content OR merely the value of Mexican labor to assemble that product.
- Warranty and/or Service Repair Arrangements – Only the value of labor and/or service performed is subject to the 25% duty.
- Energy Imports from Canada – Several energy products of Canada (including crude oil, natural gas, generated electricity, and critical minerals) are subject to a 10% rate of duty instead of a 25 % rate of duty.
Clients importing goods from Mexico and Canada should review their supply chains and assess the impact of these additional duties.
