#TariffsPause

Tariffs on Mexico and Canada have been paused until March 6, 2025, following executive orders issued by President Trump on February 1, 2025. However, tariffs on China went into effect on February 4, 2025, imposing a 10% duty on top of existing tariffs.

*Key Details:*

- *Tariff Rates:*

- *China:* 10% tariff on top of existing tariffs, with some exemptions for humanitarian relief, informational materials, and personal use items.

- *Mexico and Canada:* 25% ad valorem rate of duty on all articles imported, with an exception for Canadian energy resources facing a 10% tariff.

- *Pause on Tariffs:* The pause on tariffs for Mexico and Canada was agreed upon after negotiations with their counterparts, but China's tariffs remain in place.

- *Statutory Authority:* The executive orders were issued under the International Emergency Economic Powers Act (IEEPA), citing national emergencies related to fentanyl, synthetic opioids, drug trafficking, and illegal immigration concerns.

*Potential Implications:*

- *Trade Relations:* The tariffs may impact trade relations between the US and these countries, potentially leading to retaliatory measures.

- *Business Impact:* Companies importing goods from these countries may need to adapt to new tariff rates, potentially affecting their supply chains and costs.

- *Future Developments:* The situation is fluid, with possibilities of further tariff actions or negotiations.¹