Duty Changes on Imports from Canada: A Northern Border Timeline
- RGFIII
- Mar 15
- 3 min read
Hello, trade community! As your go-to U.S. Customs Broker, I’m here to guide you through the evolving landscape of duties on imports from Canada, our Northern Border neighbor. These updates, rolled out in 2025, are part of a U.S. strategy to combat the flow of illicit drugs—like fentanyl—while balancing trade realities. With effective dates driving the action, let’s dive into the timeline and what it means for your imports from Canada!
Canada (Northern Border): Securing Trade Routes
The U.S. has targeted Canada with a series of executive orders and notices under Executive Order 14193 to address drug trafficking across the northern border. From initial duties to industry-specific relief, here’s how it’s unfolded.
Timeline of Events and Effective Dates
February 1, 2025 – Duty Imposition Begins:
Executive Order 14193: Signed by President Donald J. Trump and published February 7, 2025 here, this order imposed a 25% ad valorem duty on Canadian goods (except those exempt under 50 U.S.C. 1702(b), like humanitarian items). The goal? Pressure Canada to stem drug flows.
Effective Date: February 4, 2025, at 12:01 a.m. EST—applies to goods entered for consumption or withdrawn from warehouse after this time, unless in transit before February 1, 2025, with certification.
February 3, 2025 – A Pause for Progress:
Executive Order 14197: Signed February 3, 2025, and published February 10, 2025 here, this amendment paused the 25% duty to assess Canada’s efforts to address the drug crisis, giving them a window to act.
Effective Date: February 3, 2025, at 12:01 a.m. EST—duties were deferred, offering temporary relief.
March 2, 2025 – Implementation and De Minimis Shift:
Notice of Implementation: Published March 6, 2025 here, this reinstated the 25% duty via HTSUS heading 9903.90.03, effective after the pause ended.
Executive Order 14226: Signed March 2, 2025, and published March 6, 2025 here, this adjusted de minimis treatment (under $800). Low-value shipments stayed duty-free for now, pending the Secretary of Commerce’s confirmation of tariff collection systems.
Effective Date for Both: March 7, 2025, at 12:01 a.m. EST—25% duty resumed, with de minimis still in play.
March 6, 2025 – Industry-Specific Relief:
Executive Order 14231: Signed March 6, 2025, and published March 11, 2025 here, this exempted USMCA-eligible automotive goods (HTSUS General Note 11) from the 25% duty and reduced the potash duty from 25% to 10%.
Effective Date: March 7, 2025, at 12:01 a.m. EST—immediate relief for key sectors.
March 7, 2025 – Duty Rate Adjustment:
Executive Order 14230: Signed March 7, 2025, and published March 11, 2025 here, this lowered the general duty rate from 25% to 15% due to Canada’s “demonstrable progress” on drug trafficking, maintaining the automotive exemption and 10% potash rate.
Effective Date: March 11, 2025, at 12:01 a.m. EST—goods entered after this date saw the reduced 15% rate.
What This Means for You
Through February 2, 2025: No duties due to the initial pause.
February 4 to March 6, 2025: 25% duty applied briefly, then paused again.
March 7 to March 10, 2025: 25% duty resumed, but USMCA automotive goods dodged it, and potash dropped to 10%.
March 11, 2025 onward: General rate fell to 15%, with automotive exemptions and 10% potash holding steady. De minimis remains duty-free—for now.
Your Next Steps
Check USMCA Eligibility: Automotive importers—verify your goods qualify under HTSUS General Note 11 to skip duties.
Adjust Costs: Budget for 15% on most goods, 10% on potash, and watch for de minimis changes.
Track Dates: March 11, 2025, shifted the game—ensure entries reflect the latest rates.
Stay Ready: De minimis relief could end soon—plan for that shift.
We’re Here to Help
These changes balance border security with trade flow, and those effective dates are key to staying compliant. Need help with classifications, duty calculations, or filings? We’ve got your back—reach out anytime!
Happy importing, and let’s keep that northern border thriving!
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