Update on Tariff Developments, March 11 2025

Update on Tariff Developments, March 11^th 2025

Since the update sent on March 4th, the United States Trump administration has further altered its position on the blanket tariffs imposed on Canada and Mexico. The administration has also signalled its intention to introduce other targeted tariff measures in the coming days.

20% Chinese tariff increases have taken effect, as have China’s retaliatory measures against several U.S. agricultural exports. The announcement of Chinese measures to impose tariffs on Canadian agriculture exports, a retaliation against measures taken by Canada last year, is instructive about the potential long-term implications of this new phase of global trade relations.

Chinese Actions

• From March 10^th, China has imposed 15% tariffs on U.S. imports of chicken, wheat, corn and cotton; and 10% tariffs on soybean, pork, beef, fruits and milk products – these are a response to the tariffs recently imposed by the Trump administration
• From March 20^th, China will impose a 100% tariff on Canadian rapeseed oil, oil cakes, and pea imports and a 25% tariff on aquatic products and pork. These tariffs are a response to the Canadian action in October of last year, imposing tariffs on Chinese electric vehicles, steel, and aluminium. The total value of the S. trade affected is estimated at $2.6 billion.

U.S. Actions

• On March 4^th the U.S. imposed an additional 10% tariff on all goods imported from China, taking the total increase in tariff since February ** to 20%. It did, however, delay the imposition of the de minimus exemption for imports of less than $800 – to give time for U.S. agencies to put in place an effective means to control and collect the tariffs
• On March 7^th, the President exempted all goods covered by the USMCA free trade agreement from the blanket tariffs imposed on imports from Canada and Mexico, which covers most agricultural and food products. It also reduced the tariff on imports of the agricultural fertilizer potash to 10% and included the de minimus exemption for low value imports.
• The amended order applies to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on March 7^th , 2025. This means that goods that were imported between 12:01 a.m eastern time on March 4^th and 12:01 March 7^th will be subject to the tariff

Canadian Actions

• Canada has not taken any action to suspend or remove the first phase of tariffs imposed on U.S. imports – these initial tariffs covering orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain paper products remain in place.
• The second phase of tariffs covering a range of core cold chain products, including beef, pork, and dairy, are still subject to a consultation that will not end until April 2^nd, 2025. There is no specific commitment to implement those additional tariff measures on that date, but the assumption at the time is that they would be ready to be put in place if the U.S. cancels its new “pause.”
• No statement has been made on action in light of the U.S. action on USMCA covered goods.
• Canada will also be considering a response to any steel and aluminum tariffs that the U.S. puts in place as early as March 12^th which may go beyond only steel and aluminum.
• Prime Minister-Designate Mark Carney, who will take office within days, has stated that the retaliatory tariffs that Canada already has in place will stay “until the Americans show us some respect.”

Mexican Actions

• The Mexican Government have still not set out any specific counter measures to the U.S. action and the President remains publicly committed to negotiations.

 

GCCA IS HERE TO HELP

• ENQUIRIES – For any questions or specific issues related to these developments contact the GCCA Legal and Regulatory Affairs team – email Lowell Randel lrandel@gcca.org, or Kerri Marbut kmarbut@gcca.org

• UPDATES will be shared in the GCCA communications, Washington Weekly (Monday 9am EST) the Cold Facts Weekly (Wednesday 9am EST). Sign up by emailing Shane Brennan sbrennan@gcca.org

• STATISTICS on trade flows and developments are available in the Cold Chain Markets Insight

• EVENTS -taking place through 2025 will include briefings and expert discussions on the implications and future of global trade policy and its implications for the cold chain – see calendar here.