Combined Summary of Canadian Tariffs (Updated Feb. 4, 2025)

Date Signed: February 1, 2025 (Amended February 4, 2025)
Signed by: President Donald J. Trump

Executive Summary

The original executive order imposed tariffs on Canadian imports to pressure Canada into stronger enforcement actions against drug trafficking and illegal migration. The amended order acknowledges Canada’s initial corrective steps and delays the tariffs to allow further assessment of their actions.

Key Provisions

• Tariff Policy & Enforcement

  • Canada’s insufficient drug enforcement initially led to the imposition of tariffs.

  • Canada has since taken some corrective steps, prompting a temporary delay.

• Tariff Adjustments

  • The 25% and 10% tariffs originally set for February 4, 2025, are now delayed until March 4, 2025.

  • The transit exemption for goods in transport before the effective date is removed.

  • If Canada’s enforcement remains inadequate, tariffs may be reinstated immediately.

  • The situation will continue to be monitored, and further action may be taken if necessary.

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Canadian Tariffs

Executive Order: Canadian Tariffs
Date Signed: February 1, 2025
Signed by: President Donald J. Trump

Executive Summary

This executive order expands a previously declared national emergency, citing Canada’s inadequate enforcement against drug trafficking organizations. It imposes tariffs on Canadian imports to pressure Canada into stronger enforcement actions. The order also outlines conditions for lifting the tariffs.

Key Provisions

• Expansion of National Emergency (Sec. 1)

  • The President declares a national emergency under the International Emergency Economic Powers Act (IEEPA) and National Emergencies Act (NEA).

  • Tariffs are imposed as a means to counter this threat.

• Tariff Imposition (Sec. 2)

  • A 25% tariff is imposed on most Canadian products, as specified in the Federal Register (Sec. 2(a)).

  • A 10% tariff applies to Canadian energy products, including oil and natural gas (Sec. 2(b)).

  • Tariffs take effect on February 4, 2025, unless goods were already in transit before February 1, 2025, with proper certification from importers (Sec. 2(e)).

  • The President may escalate tariffs if Canada retaliates with import duties or other trade measures (Sec. 2(d)).

  • The Secretary of Homeland Security is tasked with modifying the Harmonized Tariff Schedule (HTSUS) to implement these tariffs (Sec. 2(e)).

  • Goods admitted into U.S. foreign trade zones under "privileged foreign status" will be subject to the applicable duties upon entry into U.S. commerce (Sec. 2(f)).

  • No duty refunds (drawback) will be available for these tariffs (Sec. 2(g)).

  • The duty-free de minimis exemption under 19 U.S.C. 1321 will not apply to these Canadian imports (Sec. 2(h)).

• Conditions for Tariff Removal (Sec. 3)

  • The Secretary of Homeland Security, in consultation with key officials, will evaluate Canada’s enforcement efforts regarding drug trafficking and illegal migration (Sec. 3(a)).

  • If Canada takes sufficient corrective actions, the President may remove or adjust the tariffs (Sec. 3(a)).

  • If enforcement efforts remain insufficient or deteriorate, additional trade restrictions may be imposed, including the immediate reinstatement of tariffs (Sec. 3(b)).

Amended Executive Order: Canada Tariff Adjustments

Date Signed: February 4, 2025
Signed by: President Donald J. Trump

Executive Summary

This amendment acknowledges Canada’s recent enforcement efforts and pauses the imposition of tariffs for a review period. The pause allows time to assess whether Canada’s actions sufficiently address drug trafficking and illegal migration.

Key Provisions

• Recognition of Canada’s Actions (Sec. 2)

  • The Canadian government has taken initial steps to address U.S. concerns.

  • More time is needed to evaluate whether these actions are sufficient.

• Tariff Pause (Sec. 3)

  • The 25% and 10% tariffs are postponed until March 4, 2025.

  • The original exceptions for goods in transit are removed.

  • If conditions worsen, tariffs may be reinstated immediately.