Week of March 3-7, 2025 Developments
By: Kate Beale, Monica Gorman, and Christopher Gundermann
Welcome to the second CGA trade roundup, where we briefly highlight the latest developments in trade and explore business implications. If you have questions, the CGA team is ready to assist.
President Trump Implements 25% Tariffs on Canada and Mexico, Then Delays Again
At 12:01 a.m. ET on Tuesday, March 4th, President Trump proceeded to implement blanket 25% tariffs against both Canada and Mexico, with a lower tariff rate of 10% for certain energy imports from Canada and potash imports from both countries. Canada immediately issued tariffs on $20.7 billion worth of U.S. goods, with plans for another $86.2 billion by March 25th.
On Wednesday, March 5th, following conversations with automaker CEOs, the White House issued a one-month delay on tariffs for autos and auto parts that are USMCA-compliant. Additionally, on March 6th, following conversations between President Trump and President Claudia Scheinbaum of Mexico and Prime Minister Justin Trudeau of Canada, the U.S. announced that tariffs for USMCA-compliant goods between the three countries would be delayed another month, until April 2nd. Canada similarly delayed their second tranche of tariffs on American goods until the same date.
In the days since, President Trump has said that tariffs on Canada and Mexico could go up over time and has threatened additional tariffs on Canadian lumber and dairy products, up to 250%.
President Trump Implements Additional 10% Tariffs on China, Plans Others
Also on March 4th, President Trump instituted an additional 10% blanket tariff on Chinese imports, raising the overall level to 20%. China retaliated in a series of moves later that day, including instituting tariffs of 10% or 15% on a number of U.S. exports, adding a series of U.S. companies to its export control list, stopping U.S. lumber imports, and other actions.
President Trump has also recently stated plans to impose 25% blanket tariffs on products from the European Union, on semiconductors, foreign autos (presumably those not covered by USMCA), foreign pharmaceuticals, agricultural imports, timber, and copper, in addition to the planned March 12th date for steel and aluminum tariffs. He has also stated his intent to start imposing global reciprocal tariffs by April 2nd.
Insights and Questions to Consider
1. This administration puts a lot of emphasis on personal relationships with leaders, both in the private sector and abroad. How can you leverage your network to ensure your concerns are being heard by the appropriate policymakers?
2. Even with another one-month delay in tariffs on Canada and Mexico, the direction of the second Trump Administration is trending towards more tariffs, not fewer. What actions can your organization take now to mitigate the risks from future potential tariffs?
