- New Executive Orders on Tariffs: On March 6, 2025, President Donald Trump signed Executive Orders amending tariffs on Mexican and Canadian imports, implementing a 25% tariff on products not meeting USMCA Rules of Origin, while reducing duties on nonqualifying potash and Canadian energy to 10%, thus aiming to minimize disruption in the automotive industry.
- Guidance for Businesses: The White House and US Customs issued guidance for businesses involved in North American trade, advising them to analyze their import/export flows, evaluate product qualifications under USMCA, review supplier contracts, and consider sourcing alternatives to mitigate the impact of the new tariffs.
- Strategic Actions for Compliance: Companies are encouraged to explore strategies such as utilizing the US Free Trade Zone (FTZ) program for duty deferral, leveraging special classification provisions to mitigate duties, and aligning customs valuation with transfer pricing policies to effectively manage the financial implications of the updated tariff regulations.
Source EY
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