President-Elect Trump Announces Forthcoming Additional Tariffs on Chinese, Mexican, and Canadian Imports
On November 25, 2024, President-Elect Trump made two posts to his Truth Social account in which he stated that on day one of his second Administration, he would impose additional tariffs of 10% on all products from China, and additional tariffs of 25% on all products from Canada and Mexico. The two posts can be found here (China) and here (Canada and Mexico).
In his posts, the President-Elect explains that the 10% additional tariffs on Chinese goods are meant to encourage China to take effective steps to reduce the production and export of fentanyl that is sent directly to the United States or through third countries such as Mexico. The posts connect the increased tariffs on Canadian and Mexican goods with the drug trade and with crime that the President-Elect attributes to persons entering the United States from these countries.
The two posts provide little detail regarding exactly how the new tariffs will be imposed. But during his first Administration, the President-Elect often announced new tariffs or changes in existing tariffs first on social media, while leaving operational details to be announced later by the Office of the U.S. Trade Representative, U.S. Customs & Border Protection, or other agencies. Assuming the newly announced tariffs become effective in whole or in part, these agencies will likely issue Federal Register notices, potentially in concert with formal Executive Orders from the President-Elect, that will give exact details on the operation of the tariffs, including their effective date, any carve-outs, and any potential exclusion processes.
Further, the tariffs imposed during the first Trump Administration used Section 301 of the Trade Act of 1974 for tariffs on China and Section 232 of the Trade Expansion Act of 1962 for global tariffs on steel and aluminum. These laws required the Administration to conduct investigations prior to imposing any tariffs.
However, other laws are available, including the International Emergency Economic Powers Act, which would allow him to declare an economic emergency and then impose tariffs immediately.
The prior Section 301 and Section 232 tariffs imposed by President Trump also included exclusion processes, which are still in use today. However, there is no indication yet whether similar exclusion processes would be available, or how such processes would work.
Wiley has robust International Trade, Supply Chain, and Customs practices with extensive experience helping clients navigate Section 301 and broader trade issues. Should you have any questions regarding the Section 301 exclusion process, please contact one of the listed attorneys.
