President Trump has issued new executive orders to pause tariffs only on qualifying USMCA goods from Canada and Mexico effective on or after March 7 , 2025 12.01 am EST, and provided that all USMCA requirements are met. If the goods do not qualify for USMCA, they will continue being subject to the tariffs of 25% that are currently in place, except for potash as described below.
Retroactive benefits are not included in the executive orders for either country, therefore, goods entered with additional duties from tariffs between March 4, and March 6 will remain as such, and not eligible for refunds.
United States-Mexico-Canada Agreement (USMCA) – Update for Canada
Goods that are entered for consumption or withdrawn from warehouse for consumption that qualify for USMCA, are exempt from the additional duty rates that were implemented March 4, 2025, with the Harmonized Tariff Schedule of the United States (HTSUS) 9903.01.10 and 9903.01.13.
The following new HTSUS classification applies to products that qualify for USMCA.
9903.01.14: Articles that are entered free of duty under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTS, as related to the USMCA.
Potash
Certain potash that is the product of Canada entered for consumption or withdrawn from warehouse for consumption is exempt from the additional duty rates that were implemented March 4, 2025, if the potash qualifies for USMCA. If the potash does not qualify for USMCA, it will be subject to an additional 10% duty as opposed to the 25% under 9903.01.10.
The following new HTSUS classification applies to potash that does not qualify for USMCA and for which the additional 10% duty applies:
9903.01.15: Potash that is a product of Canada, as provided for in U.S. note 2(I) to the corresponding subchapter.
United States-Mexico-Canada Agreement (USMCA) – Update for Mexico
Goods that are entered for consumption or withdrawn from warehouse for consumption that qualify for USMCA, are exempt from the additional duty rates that were implemented March 4, 2025, with Harmonized Tariff Schedule of the United States (HTSUS) 9903.01.01.
The following new HTSUS classification applies to products that qualify for USMCA:
9903.01.04: Articles that are entered free of duty under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTS, as related to the USMCA.
Potash
Effective on or after 12:01 a.m. eastern standard time March 7, 2025, certain potash that is the product of Mexico entered for consumption or withdrawn from warehouse for consumption is exempt from the additional duty rates that were implemented March 4, 2025, if the potash qualifies for USMCA. If the potash does not qualify for USMCA, it will be subject to an additional 10% duty as opposed to the 25% under 9903.01.01.
The following new HTSUS classification applies to potash that does not qualify for USMCA and for which the additional 10% duty applies:
9903.01.05: Potash that is a product of Mexico, as provided for in U.S. note 2(c) to the corresponding subchapter.
Feel free to contact the Taggart/CTS Customs Brokerage team if you have any questions.
