Mexico City, March 4, 2025
Introduction
On February 1, 2025, President Trump issued the Executive Order “Imposing Tariffs to Address the Situation at our Southern Border.» This Executive Order imposes tariffs on imports from Mexico, Canada, and China in response to an alleged emergency situation involving fentanyl, drug trafficking, and illegal immigration.
Originally, the Order was set to take effect at 12:01 a.m. (EST) on February 4, 2025. However, following a conversation between the presidents of the United States and Mexico, on February 3, 2025, our country secured a one-month delay in its implementation. This pause was agreed upon with the understanding that efforts would be made to address the alleged emergency situations.
On March 2, 2025, President Trump amended the Executive Order to permit duty-free treatment for de minimis shipments (shipments valued at less than $800.00).
On March 3, 2025, President Trump issued a factsheet informing that he would continue the application of tariffs on Mexico and Canada. As a result, at 12:01 a.m. (EST) on March 4, 2025, a 25% tariff will be applied to goods imported from Mexico to the United States.
Tariffs and entry into force
Legal basis: International Emergency Economic Powers Act (IEEPA).
Tariff: 25% on «all articles that are products of Mexico» as defined in the notice to be published in the Federal Register.
Procedure: Three tariff lines are added to the United States Harmonized System to classify Mexican products (9903.01.01) and Mexican products excluded from the measure (9903.01.02 and 9903.01.03).
Effective Date: The tariff applies to products introduced for consumption, or removed from warehouse for consumption, as of 12:01 a.m. (EST) on March 4, 2025.
Exclusions: Donations made by persons subject to U.S. jurisdiction of food, clothing, and medicine feasted on the relief of human suffering and informational materials, including publications, films, posters, phonograph records, photographs, microfilm, microfiche, tapes, compact discs, CD-ROMs, artwork, and news channels.
- Tariffs are in addition to all other taxes, duties, fees, exactions, and charges that apply to imported products.
- De minimis treatment is granted to shipments under $800.
- There will be no drawbacks to these duties.
- Duty inversion benefits will not be available for the duties under this order with respect to merchandise entered into the United States from foreign trade zones.
Retaliatory actions
President Sheinbaum notice that on Sunday, March 9, she will announce the tariff and non-tariff measures to respond to the tariffs imposed by President Trump.
Relevant documents
- Executive Order (01.02.2025): https://www.whitehouse.gov/presidential-actions/2025/02/imposing-duties-to-address-the-situation-at-our-southern-border/
- Modification of Executive Order (02.03.2025): https://www.whitehouse.gov/presidential-actions/2025/03/amendment-to-duties-to-address-the-situation-at-our-southern-border/
- Factsheet (03.03.2025): https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-proceeds-with-tariffs-on-imports-from-canada-and-mexico/
- FR (unpublished) publication notice: https://public-inspection.federalregister.gov/2025-03665.pdf
The lawyers of Basham’s foreign trade area are at your service to answer any questions regarding the scope and implications of this measure for your company.
SINCERELY,
Sergio Barajas
barajas@basham.com.mx
Alberto Sandoval
asandoval@basham.com.mx
Gustavo Guillén
gguillen@basham.com.mx
Benito Adolfo González Trejo
bgonzalez@basham.com.mx
Note: This newsletter is for informational purposes only and is intended for customers of Basham, Ringe y Correa, S.C. The comments included in this document are based on documents released by the White House and U.S. Customs and Border Protection. Therefore, this bulletin does not contain specific interpretations or address real situations that could be considered as personalized legal advice.
