New US Tariffs on Canada, China and Mexico Take Effect

On March 4th, 2025, the Trump administration enacted new import tariffs on goods entering the United States. This briefing summarizes the considerations and implications for cold chain operations in the U.S., Canada, Mexico and the wider global trading system.

25% tariff on all imported goods from Canada and Mexico (except for energy from Canada, which is subject to a reduced 10% tariff)

An additional 10% tariff imposed on all goods imported from China – this follows the 10% imposed on the 2nd of February and so is a cumulative 20% increase.

Further Measures

Also, in recent days, the administration has suggested further action that will include

Agrifood tariffs – In a social media post on 3rd March, the President stated that further tariffs would be imposed on all imported agricultural goods from April 2nd. It is not clear whether this will apply to all goods or selected goods and if these would be in addition to the blanket tariffs imposed so far.

Reciprocal Tariffs Plan – On 13th February, the administration published the ‘Fair and Reciprocal Plan’ in which the President mandates the creation of a comprehensive plan for ‘restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements. within 180 days or by mid-August’ In the associated briefings, the administration made clear that this plan would look not just at direct tariffs but indirect discrimination like value added, and sales taxes imposed on U.S. goods.

Port Entry Charge – The U.S. Trade Representative’s office has published a draft proposal to implement a new charge of up to $1.5 million per landing every time a company using a Chinese-built vessel enters a U.S. port. This is a move seen to counter the dramatic shift in global shipbuilding away from the U.S. to China but will have a direct impact on shipping costs of imported goods.

Response

The three affected nations have all responded and are expected to take further steps as developments continue

Canada – Canadian Prime Minister Justin Trudeau has confirmed the introduction of retaliatory tariffs also 25% against $155 billion of U.S. goods. As announced at the time of the initial threat duties have been applied on $30 billion worth of U.S. goods immediately, with tariffs on a further $125 billion worth of products are due to be introduced in 21 days, “to allow Canadian companies and supply chains to seek to find alternatives”

China – China has reacted to the second wave by announcing a wave of import levies covering $21 billion worth of American agricultural and food products. China is one of U.S. agriculture’s biggest customers for produce such as chicken, beef, pork and soybeans and now all those products will face a 10-15% tax which will come into effect on 10 March.