| | This week's tax news from the Americas - US imposes reciprocal tariffs against trading partners and ends duty-free treatment for low-value shipments from China
On 2 April 2025, US President Donald J. Trump signed an Executive Order imposing a 10% baseline tariff for all US trading partners to take effect on 5 April 2025. The Executive Order also announced reciprocal tariffs against specific countries effective 9 April 2025. The President's action also ends the duty-free de minimis treatment for certain goods from China and Hong Kong, introducing either a 30% ad valorem duty or US$25 specific rate of duty. The EU is preparing to retaliate against these additional tariffs, but EU leaders have indicated that the bloc will remain ready to negotiate with the US to remove any remaining barriers to transatlantic trade (see Tax Alert 2025-0814).
- Canada-China trade relations — March 2025 key developments
This Tax Alert reviews the latest developments in the trade landscape between Canada and China during March 2025. Developments include (1) China’s imposition of a 100% tariff on certain Canadian-origin canola products and peas, along with a 25% tariff on Canadian pork, fish and seafood, and (2) Canada’s request for World Trade Organization dispute consultations with China regarding Chinese tariffs on certain agricultural and fishery products originating in Canada.
- Brazil close to enacting bill of law allowing for retaliatory taxation
On 2 April 2025, the Brazilian Chamber of Deputies approved bill of law No. 2088/23 (the Bill), concerning tariff and environmental reciprocity. The Bill would allow the Brazilian government to implement countermeasures if Brazilian products are subject to retaliatory measures by another country, including (1) restricting the availability of goods and products from economic blocs and countries that impose any form of environmental restrictions on international trade, or (2) increasing certain taxes for specific countries. The Senate previously approved the Bill on 1 April 2025. The Bill will now be forwarded to the President for analysis. The President has 15 business days to approve or veto the Bill.
- Canada | Quebec budget 2025-2026
On 25 March 2025, Québec Finance Minister Éric Girard tabled the province's fiscal 2025—2026 budget. The budget introduces a new refundable tax credit for R&D, innovation, and pre-commercialization to replace certain existing tax credits, effective for tax years beginning after 25 March 2025. Other proposals include (1) abolishing several tax credits, including those for research and development salaries and private partnership pre-competitive research, and (2) amending the refundable tax credit relating to mining to include certain development expenses incurred after 25 March 2025, with revised rates for critical and strategic minerals.
- United States | APA report for 2024 shows consistent number of APAs executed in less time
The US IRS’s Advance Pricing and Mutual Agreement (APMA) Program issued the 26th annual Advance Pricing Agreement (APA) report (the Report) on 27 March 2025, in Announcement 2025-13. The Report discusses the APMA Program, including its activities and structure for calendar year 2024, and gives useful insights into the operation of the APMA Program. The number of APA filings remained relatively consistent in 2024, with taxpayers filing 169 APA requests (167 in 2023). The total number of APAs executed, however, decreased slightly from 156 to 142. The median amount of time to execute an APA, however, decreased from 42.5 months in 2023 to 39.1 months in 2024. The APMA program remains steady and taxpayers may want to consider filing an APA request to obtain pricing certainty.
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| | About Americas Tax Roundup Published by NTD's Tax Technical Knowledge Services Group, Washington, D.C.
Jennifer Mannetta, writer and editor Distributed weekly to all Americas Tax personnel. | |
