ARTICLE
7 February 2025

Tariffs On Mexico And Canada Delayed; China Retaliates Against 10% Tariff

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Torres Trade Law, PLLC

Contributor

Torres Law, PLLC is an international trade and national security law firm that assists clients with the import and export of goods, technology, services, and foreign investment matters. We have extensive experience with the various regimes and agencies governing trade such as U.S. Customs and Border Protection (CBP), the Department of Commerce Bureau of Industry and Security (BIS), the Department of State Directorate of Defense Trade Controls (DDTC), the Department of Treasury Office of Foreign Assets Control (OFAC), the Department of Defense Security Service (DSS), the Committee on Foreign Investment in the United States (CFIUS), and others.
President Donald Trump has agreed to delay the implementation of tariffs on imports from Mexico and Canada for 30 days, following negotiations with the leaders of both countries.
Worldwide Intellectual Property

President Donald Trump has agreed to delay the implementation of tariffs on imports from Mexico and Canada for 30 days, following negotiations with the leaders of both countries. For more information about the threatened tariffs, see yesterday's trade alert, U.S. Imposes Tariffs on Imports from Canada and China Beginning February 4; Mexican President Announces One Month Implementation Delay (published before the announcement of the delay of tariffs on Canada). The decision to delay implementation comes after Mexico and Canada committed to enhance border security and combat the flow of fentanyl into the United States.

The tariffs, which were initially set to take effect on February 4, 2025, would have imposed a 25% levy on nearly all goods imported from Canada and Mexico. Both countries threatened retaliatory measures if the tariffs were implemented.

While the North American neighbors have reached a temporary agreement, a 10% tariff on Chinese imports took effect at 12:01 a.m. EST on February 4, with Trump characterizing it as an "opening salvo" that could escalate to "very, very substantial" levels if an agreement is not reached.

China has announced the following countermeasures in response to the new tariffs:

  • A 15% tariff on U.S. coal and liquefied natural gas (LNG);
  • A 10% tariff on U.S. crude oil, agricultural machinery and large-engine cars;
  • Export controls on critical minerals, including tungsten, tellurium, bismuth, molybdenum and indium;
  • Investigation of Google for Chinese antitrust law violations; and
  • Addition of two U.S. companies, PVH Group, which owns clothing companies Tommy Hilfiger and Clavin Klein, and Illumina, a biotechnology company, to China's "Unreliable Entity" List. This listing can lead to prohibitions on import and export activity in China and a ban on further investment in China.

Tariffs and other retaliatory measures between the United States and China could continue to level-up in a tit-for-tat escalation, or the countries could negotiate an agreement to return to the status quo.

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