Tariff Talk

The 25% IEEPA (International Emergency Economic Powers Act) tariffs, which took effect on March 4 for Canada and Mexico, have now been temporarily adjusted. Following appeals from various business sectors, the President agreed to exempt items that qualify for preferential treatment under the USMCA (U.S.-Mexico-Canada Agreement), including goods that are wholly originating from a member country or meet the agreement’s specific rules of origin.

However, goods that do not meet USMCA qualifications will still be subject to the 25% tariff, with one key exception: potash. Recognized as a crucial component in fertilizers for U.S. farmers, potash from Canada or Mexico that does not qualify under USMCA will be assessed a reduced IEEPA tariff rate of 10%.

The White House has confirmed that the current tariff conditions will remain in place until April 2. OCEANAIR will continue to monitor developments and provide timely updates as new information becomes available.