2025-03990Presidential DocumentWallet

Northern Border Tariffs Eased for Canada Amid Drug Crackdown

Published Date: 3/11/2025

Presidential Document

Summary

This update changes some tariffs to help protect American jobs in the car industry while still tackling illegal drug flow from Canada. Certain Canadian goods, especially automotive parts, won’t face extra taxes, and the tariff on potash drops from 25% to 10%. These changes started on March 7, 2025, balancing trade fairness with border security.

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Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Canadian-origin Goods Exempted From Extra Duties

Goods that qualify as a "good of Canada" under general note 11 to the Harmonized Tariff Schedule of the United States (including treatments in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 related to the USMCA) will not be subject to the additional ad valorem duties imposed by sections 2(a) or 2(b) of Executive Order 14193. This exemption takes effect for goods entered or withdrawn for consumption on or after 12:01 a.m. Eastern Standard Time on March 7, 2025.

Potash Tariff Cut From 25% to 10%

The additional rate of duty on potash (when not eligible for the general note 11 exemption) is reduced to 10 percent instead of 25 percent. This reduction applies to potash entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Standard Time on March 7, 2025.

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Key Dates

Effective Date
Published Date
3/7/2025
3/11/2025

Department and Agencies

Department
Independent Agency
Agency
Executive Office of the President
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