March 4 Trade Alert: CBP Confirms Tariff Enforcement on Canada, Mexico, and China

U.S. Customs and Border Protection (CBP) has released its official enforcement notice just hours before the March 4, 2025, deadline. The notice confirms critical details regarding tariff exemptions, processing changes, and trade policy modifications.

🔹 Key Takeaways from CBP’s Notice

1️⃣ Canadian Energy Products: 10% Tariff Confirmed

The CBP notice confirms that certain Canadian energy exports will be subject to a 10% tariff rather than 25%.

“Except for products described in headings 9903.01.11 and 9903.01.12, and other than products for personal use included in accompanied baggage of persons arriving in the United States, articles the product of Canada: Crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606(a)(3) shall be subject to an additional 10 percent ad valorem tariff.”— U.S. Tariffs on Canada (Executive Order 14193), Federal Register, 2025-03664

2️⃣ General 25% Tariff for All Other Canadian Imports

All other imports from Canada will be taxed at a 25% tariff rate, unless they qualify for an exemption.

“For the purposes of heading 9903.01.10, products of Canada, other than products described in headings 9903.01.11, 9903.01.12, and 9903.11.13, and other than products for personal use included in accompanied baggage of persons arriving in the United States, shall be subject to an additional 25% ad valorem rate of duty.”— U.S. Tariffs on Canada (Executive Order 14193), Federal Register, 2025-03664

3️⃣ De Minimis Exemption Still Applies for Now

Shipments valued under $800 from Canada and Mexico still qualify for de minimis treatment, but this exemption will be phased out once the necessary enforcement systems are in place.

“Products of Mexico that are provided for in heading 9903.01.01 and that are otherwise eligible for the administrative exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C) — known as ‘de minimis’ exemption – may continue to qualify for the exemption, but the de minimis exemption shall cease to be available for such articles upon notification by the Secretary of Commerce, in consultation with the Secretary of the Treasury, to the President.”— U.S. Tariffs on Mexico (Executive Order 14194), Federal Register, 2025-03665

4️⃣ No Duty Drawback Allowed

Businesses will no longer be able to seek refunds for tariffs paid on affected goods.

“No drawback shall be available with respect to the additional duties imposed pursuant to the Executive Order.”— U.S. Tariffs on China (Executive Order 14195), Federal Register, 2025-03677

5️⃣ Foreign Trade Zones (FTZ) Rule Changes

Mexican and Chinese goods admitted into U.S. Foreign Trade Zones (FTZs) must now be classified as “privileged foreign status,” meaning tariffs will apply even if goods are further processed within the FTZ.

“Articles that are products of China, excluding those encompassed by 50 U.S.C. 1702(b), except those that are eligible for admission to a foreign trade zone under ‘domestic status’ as defined in 19 CFR 146.43, and are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern standard time on February 4, 2025, must be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41.”— U.S. Tariffs on China (Executive Order 14195), Federal Register, 2025-03677

6️⃣ CBP Enforcing Tariffs Despite Notice Delay

Even though the official Federal Register notice is scheduled for March 6, CBP has already begun enforcing tariffs at ports of entry.

“This document is scheduled to be published in the Federal Register on 03/06/2025 and available online at https://federalregister.gov/d/2025-03677, and on https://govinfo.gov”
“The duties set out in the Annex to this document are effective with respect to products of the PRC (which include products of Hong Kong) that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 4, 2025”— U.S. Tariffs on Canada (Executive Order 14193), Federal Register, 2025-03664

📄 Official Government Notices Now Available

For full details, access the official Federal Register notices:

⚠️ Important Disclaimer

The information in this update is based on official U.S. government notices as of March 4, 2025. While every effort has been made to ensure accuracy, businesses should verify tariff classifications and exemptions with U.S. Customs and Border Protection (CBP) or a licensed trade compliance professional.

📢 Next Steps for Businesses

Review tariff classifications to ensure compliance.
Prepare for duty drawbacks being phased out.
Assess supply chain risks for FTZ users and manufacturers working with Mexico.

Stay ahead of trade policy changes with real-time updates from TRADLINX.

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