WHAT’S THE LATEST

In an Executive Order issued on July 31, President Trump modified a previous order (Executive Order 14193 of February 1 titled “Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border”) which increased the tariff on certain Canadian goods to 35%, effective August 1 at 12:01 a.m. ET. As they were previously, goods covered by the existing USMCA trade agreement remain exempt from this increased tariff.

President Trump also announced on July 31 that the existing 25% tariffs for Mexico will continue during an additional 90-day pause to allow more time to reach a trade deal.

WHAT WE KNOW

  • Products with country of origin of Canada face increased tariff of 35%, with exemptions for USMCA Qualifying product effective August 1.
  • Tariffs on Canadian origin energy products and potash will remain at 10%.
  • Per a Truth Social Post, President Trump said he would pause any additional tariff on Mexico for 90 days. 

WHAT'S NEXT?

Our team is available to assist with compliance strategies, risk/duty mitigation, and supply chain strategies.  

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.