02 February 2025 President signs orders for tariffs on Canada, Mexico President Trump today (February 1, 2025) signed Executive Orders (EOs) imposing tariffs on Canada and Mexico effective February 4, citing "the tide of illicit drugs" coming into the US from these countries as part of the impetus. The Canada EO imposes 25% tariffs on imports effective February 4, except for lower 10% tariffs on energy resources, which are understood to include crude oil. Duty-free de minimis treatment is also revoked for the affected articles, and no drawback (refund of duties, taxes, and fees on imports) is available with respect to the duties imposed pursuant to the order. "Should Canada retaliate against the United States in response to this action through import duties on United States exports to Canada or similar measures, the President may increase or expand in scope the duties imposed under this order to ensure the efficacy of this action," the order says. The Mexico EO likewise imposes 25% tariffs on imports effective February 4 and includes similar language about potential increases in response to any retaliation. Also similar is the duty-free de minimis treatment being revoked for the affected articles, and no drawback is available. A third EO addresses tariffs on certain foreign rivals and the imposition of additional 10% tariffs. On Friday, President Trump remarked, "they’ve treated us very unfairly. And I say, 'Why should we be subsidizing Canada?' … And with Mexico, it’s the same thing." He also said he would put tariffs on the European Union, saying "the European Union has treated us terribly." He also suggested he would put tariffs on semiconductor chips. Additionally, "We’re going to put tariffs on oil and gas. That’ll happen fairly soon, I think around the 18th of February. And we’re going to put a lot of tariffs on steel," the President said. The Executive Orders will be posted at https://www.whitehouse.gov/presidential-actions/ Document ID: 2025-9003 |