New tariffs in Mexico, Canada and China: critical updates

On the weekend, President Trump signed three administrative orders, right Canada,,,,, Mexicoand ChinaThe

• 25 % tariff imported from Canada Will take effect February 4, 2025Essence
• 25 % tariff imported from Mexico The plan is effective now March 4, 2025Essence
• 10 % tariff imported from China Will Take effect February 4, 2025Essence

Energy resources from Canada will reduce tariffs by 10 %. No duties de minimis treatment 19 USC 1321 These additional tariff products will not be obtained. Tariffs will find Canadian federal registration notice in any other aspects (301, 232, ADD, etc.) here You can find the Chinese Federal Communist Notice hereEssence Customs and border protection (CBP) Released Extra Import tariffS From China and Canada, you can find it here here.

Policies and international responses

Government Tariffs are designed to curb the flow of immigrants and drugs into the United States. The White House overview explains that tariffs will make Mexican, Canada and China bears the promise of stopping illegal immigrants and prevented Fantney and other drugs from flowing. boundary. Tariffs will be “until the crisis is reduced.”

Canada and China immediately vowed to levy retaliatory tariffs and countermeasures. Canadian Prime Minister Justin Trudeau AnnounceThe starting price of the tariff is about 25 %, and US products worth about 30 billion U.S. dollars have increased by 85 billion US dollars in three weeks. The Ministry of Commerce of China said they will filed a lawsuit against the United States in the World Trade Organization and vowed to implement countermeasures.

After a meeting between President Trump and Mexican President Claudia Sheinbaum, Mexico tariffs will be suspended One month. Sheinbaum vowed to immediately strengthen the northern border of Mexico with the 10,000 National Guard Soldiers to curb drug trafficking from Mexico to the United States

What should importers do:

Although these increases will undoubtedly have a significant impact on any business imported from these countries to the United States, the importers are not unsatisfactory.

It is now the time for importers to review their operations and compliance plans and ensure that they operate in the most effective way. There are also several methods to minimize tariffs.

Disadvantage

If you only import the product into another country, you may have the right to compensate for the responsibilities paid after importing The disadvantages of the United States on duty Provide a certain amount of duties, internal taxation, and CBP’s up to 99 % of the refund paid after importing. Only after being exported or destroyed by objects (under CBP supervision) can disad be granted. Note: Importers may not use their duties to reduce the new tariffs discussed above.

Tariff project

Tariff engineering involves changing a good situation before importing so that it can be classified as favorable American coordination tariff scheduleEssence (HTSUS) The classification benefits from a lower tariff rate. Because CBP can only impose tariffs according to the status of the product, the tariff project allows importers to have the opportunity to redefine its imported products and pay lower tariffs.

Changes in nationwide

Although the possible cost of initial relocation is very high, it has changed country of origin You will allow you to import exactly the same items without paying extra responsibilities. If you consider this choice, you must recognize the national list of free trade agreements with the United States. Even if another country may not bear substantial responsibilities, your supply chain is transferred to countries with a formal, free and fair trading agreement with the United States to ensure accountability and reliability.

According to the “U.S. First Trade Policy” memorandum of the White House on January 20, 2025, US trade representatives are reviewing all free trade agreements and is expected to issue reports on April 1, 2025.

First sales

First sales It is a system that can reduce the value of imported goods by authorized importers to use the price paid in the first sales. As long as the sales record can be exported to the United States, and the importer meets all other customs requirements, the earlier sales can be used in the announcement of the customs value.

Therefore, transactions between manufacturers and middlemen, not transactions between middlemen and new buyers.

Delay on duty

If importers cannot reduce the tariff burden, they can consider delaying the cost of duties through foreign trade and/or bond warehouses. Note: Importers may not use special foreign trade zone to delay the above -mentioned tariffs discussed.

Foreign trade zone

Foreign trade zone (FTZS) Although technically, within the geographical limit of the United States, it is considered a guarantee area outside the US customs. Foreign and domestic products can be included in FTZ for storage, exhibition, assembly, manufacturing, re -distribution, processing, etc. FTZ allows users to delay, reduce or eliminate customs duties. Before any manipulation or manufacturing commodityThis will change its tariff classificationn, vertexTERS May also apply for TThe area he wants to give privateIForgotten Foreign identity. Commodities with privileges are classified and evaluated, and their responsibilities and taxes will be determined from the date of submission.

Adhesive warehouse

Unlike FTZ, the bonded warehouse is located in the US customs. The warehouse composed of customs is a guaranteed area that can store imported goods in this area without paying taxes for 5 years.

Under the supervision of U.S. customs officials, importers can be repaired, classified or label imported in these locations. Unless it is approved by American customs, it is usually forbidden to manipulate goods.

Negotiate DDP Incoterm

International business clause (“INCOTERMS”) was published by the International Chamber of Commerce (ICC) to promote international trade and promote the open market. The International Criminal Court (ICC) has developed unreasonable development, thinking that traders provide universal languages ​​and establish a global rule system to manage trade. Incoterms is not a law, but to prevent confusion among global traders by clarifying the contract obligation of buyers and sellers.

The unreasonable negotiation with partners is another way to minimize import costs. Importers should review their contracts and negotiate the “Payment Tax” (DDP) Incoterm. The DDP period is the responsibility of the seller’s delivery of the goods (including export and import permits, transportation costs, import tax and packaging costs). The seller acts as a recorder and has the ability to deduct the cost of freight, responsibilities and insurance from taxable value. Another advantage of the DDP period is that if the structure is correct, it can reduce the total impact of tariffs.

Try to reduce the tariffs carefully

Explorer the option to explore the minimum tariff liability should always cooperate with experts to ensure that they continue to comply with all US customs regulations. Tax evasion is a serious crime. Under the circumstances of fraud, it may lead to serious monetary fines or even in prison.

In the Diaz Trading Law, we have a good trading in the minimum tariff and customs in accordance with the customs. To understand more information about how we provide help, please contact us through info@diaztradladlade, or call 305-456-3830 to contact us.

learn more: