President Trump – Imposition of Tariffs

Imposing Tariffs on Imports From Canada, Mexico, And China

As the White House administration continues issuing executive orders and implementing new legislation, Maddin Hauser’s DC Digest highlights the changes and identifies key points affecting businesses and individuals. Follow our blog series to stay informed.

Date Signed: February 1, 2025

Type of Action: Executive Order

Title: “Imposing Tariffs on Imports from Canada, Mexico, and China.”

Details: This executive order establishes new tariffs on imports from Canada, Mexico, and China as part of an effort to address the national emergency related to illegal immigration and the influx of illicit drugs, including fentanyl, into the United States.

Key tariff provisions include:

• A 25% tariff on imported goods from Canada and Mexico.
• A 10% tariff specifically on Canadian energy resources.
• A 10% tariff on all imports from China.

The administration asserts that these measures aim to strengthen domestic manufacturing, reduce reliance on foreign production, and bolster national security.

On Monday, February 3, 2025, President Trump agreed to a 30-day pause on imposing tariffs against Mexico and Canada after the two countries agreed to boost border enforcement. The tariffs against China took effect on Tuesday, February 4, 2025. 

Implications for Corporate, Trade, and Tax Clients:

• Trade and Corporate: Businesses that rely on imports from these countries may experience increased costs, requiring reassessment of supply chains and considering alternative sourcing strategies.
• Tax: The newly imposed tariffs could lead to higher import duties, impacting overall tax liabilities. Companies should explore potential tax planning strategies to mitigate these costs.
• Labor and Employment: Businesses may need to adjust workforce planning due to potential shifts in production and sourcing. Employers may need to retrain employees or reallocate resources in response to changing operational demands.

If you have any questions or require assistance navigating these new tariffs and their potential effects on your business, please contact Nolan J. De Jong or another member of the Maddin Hauser team.