Week 8 – New first 100 days

This blog post covers trade developments that took place in the eighth week of the new Trump administration. It covers events at 12:00 PM ET on Friday, March 14.

Continuous tariff development

On March 4, 2025, on March 7, 2025, the U.S. Customs and Border Protection (CBP) implemented five presidential executive orders that were imported from China, Hong Kong, Canada and Mexico. Under the International Emergency Economic Powers Act, CBP is collecting the following additional tariffs for imports from Mexico, Canada and China:

• An additional 25% tariff is imposed on commodities that do not meet the US-MEXICO-CANADA Agreement (USMCA) Rules of Origin.
• The additional 10% tariff on energy products imported from Canada is reduced to outside USMCA preferences.

• Potassium imports from Canada and Mexico are lower, with an additional 10% tariff not outside USMCA preferences.
• 20% of goods from China and Hong Kong (up from 10% on March 4).

From March 7, 2025, there is no additional levy for goods from Canada and Mexico to be eligible for USMCA preferences.

In addition, CBP provides specific guidance on imported products of aluminum and aluminum derivatives, as well as import duties on steel and steel derivatives imports. On the Guide to Steel, President Trump announced a 25% tariff on all imported steel and all imports of derivative steel items from all countries, starting from March 12, 2025, with guidance on aluminum imports. Effective on March 12, 2025.

The impact of tariffs on cross-border logistics

In response to the U.S. announced (and then delayed) tariffs, the Cross-border Truck Operations Report reports on the widespread impact on the freight movement between the U.S., Canada and Mexico. Operators noted that the border crossings across Canada and Mexico experienced delays, at least some due to expected upcoming tariffs. Specifically, CH Robinson reported that the requirements for USMCA eligibility for USMCA eligibility have significantly increased, given the White House’s announcement that USMCA-Con-Con-Con-Con-Con-Con-Chiperaint Goods will benefit from the tariff suspension. In addition, some shippers are adopting innovative customs strategies to separate goods to limit responsibilities for materials affected by tariffs, thereby increasing the complexity of cross-border logistics.

President Trump aims at Chinese containers

On March 11, 2025, the U.S. government began to investigate China’s dominance in the shipbuilding industry. The House Armed Services Subcommittee on Customs and Projection Forces is holding a hearing on U.S. shipbuilding, and the U.S. Trade Representative Agency plans to hold a public hearing on March 24.

In addition to the service charges imposed on port phones for ships made in China, the USTR report in January recommends that marine airlines placing 50% or more orders at Chinese shipyards or expected to arrive in the next 24 months each time they enter a U.S. port. For ships built in the United States, these fees can be refunded annually, up to $1 million a year.

Proposals aimed at limiting China’s dominance in shipbuilding include imposing restrictions on U.S. exports. Initially, 1% of all U.S. products exported by vessels must be used for U.S. frame vessels operated by U.S. operators. Over the course of seven years, these restrictions will gradually increase, requiring at least 15% of U.S. goods to export onto U.S. flag ships operated by U.S. entities, and 5% of ships also require U.S. entities.

Again, close again: tariff escalation between Canada and the United States

After 24 hours of back and forth, President Donald Trump announced on Tuesday evening, March 11, 2025 that the United States will not upgrade Canadian steel and aluminum to 50% tariffs. The announcement comes after the Ontario government also retreated and solicited its efforts to impose surcharges on electricity exports to the United States.

On early March 10, 2025, Ontario announced that electricity prices in three northern U.S. states, Minnesota, New York and Michigan could rise 25% until the threat of threat surcharges were suspended after Trump threatened President Trump to escalate steel and aluminum tariffs.

Specifically, Ontario threatened to terminate the power on Monday unless President Trump withdraws his tariff threat. The new surcharge per megawatt hour (approximately $7) will result in a $100 monthly fee for household bills and may cost $400,000 per state per day.

In response, President Trump announced today that his administration will increase Canadian steel and aluminum tariffs due to threatening charges imposed by the Ontario government, marking the latest developments in the escalating trade conflict. The total tariff on imports of steel and aluminum from Canada is now expected to be 50%.

After President Trump announced the news, the Ontario Prime Minister initially reiterated the possibility of completely cutting off U.S. electricity and warned him that he was also prepared to make export taxes higher. Later, the Ontario Prime Minister announced that he agreed to suspend the 25% electricity import surcharge, and the meeting was reportedly scheduled to be held on Thursday, March 13, 2025 to discuss renewal of the U.S.-Mexico-Canada free trade agreement.

Commercial issues require certification; Section 232 is now valid for all new derivatives

As mentioned earlier, on February 10, 2025, President Trump issued statements for 10895 and 10896, making significant changes to existing measures for aluminum and steel under national security reasons under Section 232 of the Trade Expansion Act of 1962. Among other things, the steel announcement will be added to the steel range and will be included in the “Downgrade” list and included in the “Downgrade” list. 25% of all countries except Russia, with 200% of their responsibilities.

The new derivatives covered on February 10 are listed in the attachments to Announcements 10895 (for aluminum) and 10896 (for steel). The February 10 declaration states that commodities listed under the annexes listed in Chapters 73 (Iron and Steel) and Chapter 76 (Aluminum) will be subject to duties starting on March 12, 2025. The statement further states that within the additional scope of Chapters 73 and 76, the derivative is classified as extra diligence outside Chapters 73 and 76, so that the additional diligence is placed in the additional scope of the authorization date is given so additional responsibility that it is given to it to be raised to secret publicity that the scope on the society is the spell of the scope to be subsided on tariffs covering articles and collect tariff revenues.

On March 11, 2025, U.S. Secretary of Commerce Howard Lutnick submitted a publication certificate in the Federal Gazette. Later on March 11, CBP issued updated Cargo System Message Service Guidance, which had previously issued Cargo Service Guidance for Steel and Aluminum on March 7 to confirm that all derivatives (including derivatives outside Chapter 76, including derivatives outside Chapter 76, will be conducted after 12:01 am on March 12, 2025 or after 12:01 am on March 12, 2025 for any effective guidance for Steel and CBP in 2025 derivatives.

New retaliation against Canadian tariffs

The Canadian government announced a countermeasure after President Trump imposed a 25% tax on steel and aluminum products in various countries, including Canada, on March 12. Since March 13 today, these measures have imposed an additional Justice Department targeting $29.8 billion worth of CAD from the United States.

The tariffs are intended to be imported from the United States with a target of $29.8 billion. The amount is approximately equal to the value of steel and aluminum products affected by U.S. tariffs, with copies distributed among various categories as follows: steel ($12.6 billion for CAD), aluminum ($3 billion for CAD) and other U.S. goods ($14.2 billion for CAD). The secondary pulses are part of a larger plan for Canada to be prepared to implement a Canadian retaliatory tariff that it reportedly prepares.

EU announces countermeasures to U.S. tariffs on steel and aluminum

The European Commission announced countermeasures to address the impact on EU businesses and consumers in response to the US reinstating 25% tariffs on steel imports and increase of the existing 10% tariff on aluminum imports to 25%, while extending these tariffs to additional steel and aluminum products on March 12, 2025. These countermeasures will be implemented in two stages, starting with renewing the countermeasures imposed in 2018 and 2020 (previously suspended). These measures include tariffs on certain U.S. products ranging from 4.4% to 50%, and will come into effect on April 1, 2025. To determine whether its supply chain will be affected, companies should review the 2018 Response (EU) 2018/886 list of US products under regulatory volumes in 2018 (EU) 2018/886 list of US products that comply with regulatory sales in 2020, and 2020/2020/2020/2020/2020/2020/2020/EU).

In the second phase, the European Commission will propose a new set of countermeasures to U.S. products, which will be implemented around April 13, 2025. Companies should review the list of U.S. products that may be subject to these new countermeasures (available here) and participate in the committee’s consulting process, which will be open on March 26, 2025 until March 26, 2025 (Information). This process allows potentially affected parties to provide input that will be considered before adopting a new package.

Meanwhile, the European Commission can still negotiate a solution with the United States. European Trade Commission Maroššefčovič emphasized the commission’s willingness to constructively reach an agreement that could lead to U.S. tariffs and opposition from the EU. However, companies should verify the classification and origin of their products in accordance with EU regulations and participate in the above consulting process in preparation for the upcoming changes.