President-Elect Threatens Tariffs on Canada, Mexico, China

Nov. 26, 2024
By: David G. Forgue

On November 25, 2024 President-Elect Trump announced his intention to impose duties of 25% on goods on Canadian or Mexican origin, as well as an additional 10% on goods of Chinese origin immediately upon taking office.

It is not clear what mechanism the President-Elect believes can be used to impose duties immediately on Canada and Mexico, especially in light of the USMCA agreement among the countries. Importantly, the announcement noted that the tariffs for Canada and/or Mexico could be avoided based on action with respect to border security and the prevention of smuggling on fentanyl into the United States. Regular readers will remember that various tariff proposals were modified in light of bilateral agreements.

With respect to the additional 10% duty in goods from China, the Section 301 framework seems likely to be used. Whether new tariffs would be in effect immediately or would go through a more typical notice-and-comment period is not clear.

Contact Barnes, Richardson & Colburn attorneys for the latest developments in trade as well as your trusted advisors as you attempt to plan your business activity.