Illinois Fertilizer & Chemical Association
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Update on Trump’s Tariffs on Canada and Mexico

Saturday the Trump Administration announced the imposition of tariffs on imports from Canada, Mexico, and China through three separate Executive Orders (EOs) using the President’s authority under the International Emergency Economic Powers Act (IEEPA). Those EOs have been publicly released, and this alert provides a summary of the Canadian tariff Order.
 
25% tariffs on goods from Canada: All imports from Canada will be subject to a 25 percent tariff, with the exemption of Canadian energy products, which will face a 10 percent tariff.
 
Beginning on Tuesday: The tariffs will apply beginning on Tuesday, February 4, 2025, at 12:01 AM Eastern. Goods shipped before Saturday, February 1, 2024, will not face the tariff.
 
Includes a retaliation clause: The EO includes a provision that empowers the President to increase or expand the scope of the tariffs imposed should Canada impose retaliatory tariffs on the US.
 
No exemption procedure: The text of the EO does not include provisions whereby exemptions for specific products or sectors could be granted. That said, there is nothing in the EO that directly prohibits the Administration from modifying the tariff provisions.
 
Can be removed in the future: If the Administration determines that Canada has taken adequate steps to alleviate” the flow of illicit drugs and illegal migration, then under the EO the tariffs will be removed. The Order does not include specific metrics for meeting this requirement.
 
Canadian response: Saturday evening the Canadian Government announced that it was responding to the US action by imposing its own 25 percent tariff on more than $100 billion of imports from the US. Additionally, individual Canadian provinces have announced their own actions regarding government procurement and other policies. At the time of this alert, the White House had not announced if it was invoking the retaliation clause in the EO in response to these announcements.
 
Sunday evening President Trump said he would speak Monday morning with the leaders of Canada and Mexico after imposing a fresh round of tariffs on imports from those countries and made clear it would take significant action to lift the tariffs.   “‘They have to balance out their trade, number one. They’ve got to stop people from pouring into our country, and we’ve stopped it. They haven’t stopped it. We’ve stopped it,’ Trump told reporters. ‘They have to stop people pouring in, and we have to stop fentanyl. And that includes China,”.  
 
Canadian and Mexican officials suggested they will work together when it comes to retaliatory tariffs after President Donald Trump imposed universal tariffs on both countries and China — the three biggest markets for U.S. agricultural commodities.  For Canada and Mexico.  That agreement lowered tariffs on products, including zero tariffs on most agricultural products flowing between the three countries.  Through November, U.S. agricultural sales to the three countries accounted for $75.9 billion for 2024.”  Canada will start with $20.6 billion on Tuesday and bump it up to full tariffs by the end of the month.
 
IFCA is working with our national partners, the new administration and members of congress on what the next steps are.  If you have questions, please reach out to KJ Johnson at the IFCA office.