On March 6^th, two Executive Orders (EO) were issued halting the IEEPA (International Emergency Economic Powers Act – intended to stem the flow of narcotics across US Borders) tariffs on goods from Canada and Mexico which went into effect on March 4^th.   They will be halted as of March 7, 2025, at 12:01am.  The IEEPA tariffs are 25% from both Canada and Mexico.  This action halting these tariffs pertains to all goods (not just automotive) which are claimed under the USMCA agreement.  The stated reason for this change is due to the significant number of automotive suppliers who have nearshored.   Below is a quote from the EO covering Mexico, Canada is afforded the same halting of this IEEPA tariff under a separate EO.  Although the press is calling this a pause/halt until April 2, 2025, there is no language in the Executive Order with any date that this halt/pause is effective through.  As we read it, it is halted with no date to resume the 3-day tariff.

Automotive production is a major source of United States employment and innovation and is integral to United States economic and national security.  The American automotive industry as currently structured often trades substantial volumes of automotive parts and components across our borders in the interest of bringing supply chains closer to North America. In order to minimize disruption to the United States automotive industry and automotive workers, it is appropriate to adjust the tariffs imposed on articles of Mexico in Executive Order 14194 of February 1, 2025.

We will be updating our temporary legislative actions pertaining to tariffs chart on the website tomorrow, once we view the Federal Register notice which may provide us with additional details.

The order of communication is Executive Order => Federal Register Notice => Implementation programming for our interconnected systems with Customs and Border Protection.

Please let us know if you have any questions.

March 6, 2025