Navigating the New Tariffs: What Ecommerce Businesses Need to Know

LATEST (February 3, 2025): The U.S. has decided to defer tariff action against Mexico and Canada for 30 days. In response, the Canadian government has decided to delay retaliatory tariffs against the U.S.

On February 1st, President Trump issued an executive order announcing the implementation of tariffs on all goods entering the US with a country of origin of Canada, Mexico, as well as select goods with a country of origin of China. A fact sheet published by the US government can be viewed here. These measures include:

A 25% tariff on goods with a country of origin of Mexico
A 25% tariff on goods with a country of origin of Canada (10% for energy products)
An additional 10% tariff on goods with a country of origin of China

Additionally, the U.S. will suspend the de minimis exemption for goods with a country of origin of Canada, Mexico, and China meaning that low-value parcels (under $800) will no longer enter the US duty-free. These changes will officially take effect on February 4th. The tariffs are being enforced under the International Emergency Economic Powers Act (IEEPA) and will have wide-reaching implications for cross border trade.

Canada’s Response: Retaliatory Tariffs on U.S. Goods

In response to these new tariffs, the Canadian government has announced its own set of countermeasures, which can be viewed here, imposing a 25% tariff on a broad range of U.S. goods. These tariffs will take effect February 4, 2024, at 12:01 AM.

The Canadian government has released a detailed list of affected products that includes a diverse range of goods, such as wine, beer, coffee, apparel, appliances, footwear, motorcycles and cosmetics. Additional products may also be subject to tariffs later this month following further consultations with Canadian industries.

Importers can still leverage the United States-Mexico-Canada Agreement (USMCA) to avoid standard Most-Favored Nation (MFN) tariffs, ensuring that only the new 25% tariff / surtax applies when shipping goods into the U.S or Canada. However, businesses must still provide the necessary documentation to qualify for USMCA benefits

Reassurance in this Complex Environment

At Landmark Global, we specialize in making sense of complex international trade environments. Our in-house trade services experts are closely monitoring these developments to ensure our ecommerce clients’ duties are correct and comply with the new policies. We’re here to help you minimize disruptions and stay ahead of these changes. If you have any questions or concerns, don’t hesitate to reach out—we’re here to help.