IEEPA Tariffs

International Emergency Economic Powers Act (IEEPA)

IEEPA is a federal law granting the President authority to counter unusual and extraordinary threats to national security without requiring congressional approval or extensive agency review. While IEEPA has historically been used to impose economic sanctions, this marks the first time it has been used to impose tariffs.

IEEPA requires the president to "consult" with Congress "in every possible instance" before taking action. While the president can act unilaterally, they must provide regular reports to Congress on the actions taken.

Tariff Rates and Effective Date

The Executive Orders do not list specific products subject to the tariffs but state that the tariff applies to all goods which are "products of" these countries.

• No tariffs on goods from Canada and Mexico that qualify for USMCA duty-free entry into the U.S.
• 25% tariffs on goods that do not satisfy USMCA rules of origin.
• 10% tariffs on energy products from Canada that do not qualify for USMCA preference.
• 10% tariffs on potash imports from Canada and Mexico that fall outside USMCA preference.

*Important: Note that many products imported from Canada and Mexico were already duty-free under MFN rates, making USMCA declarations unnecessary. Under the new policy, importers must document and ensure USMCA compliance (if eligible) to be exempt from the IEEPA tariffs. Otherwise, the 25% IEEPA tariff would apply.*

China: As of March 4, 2025, a 20% tariff applies to all imports from China, including imports from Hong Kong, an increase from the 10% tariff that went into effect on Feb. 4, 2025.

The new tariff rates above apply "in addition to any other duties, fees, exactions or charges" applicable to imported products. In other words, these tariffs will be applied on top of any existing import duties or tariffs already in effect.

Exemptions

The Executive Orders do not outline any exceptions nor establish an exemption process.

The Executive Orders also state that the tariffs will remain in effect until the President determines that the countries have taken "sufficient action to alleviate the crisis."

Retaliation Clause

The original Executive Orders state that if Canada, Mexico and/or China retaliate against the United States, the President may increase or expand the scope of the duties imposed under this order.

Drawback

The Executive Orders state that no drawback shall be available with respect to the IEEPA tariffs.

De Minimis for China

On April 2, 2025, President Trump signed an executive order revoking the de minimis exemption for low-value imports from China and Hong Kong, effective May 2. As a result, all shipments from these regions, regardless of value, will now be subject to applicable duties.

Postal Shipments: Goods sent via international postal shipments, transportation carriers may elect to apply a 30% duty or $25 per item will apply, increasing to $50 per item after June 1. This is in place of any other duties, including those imposed by prior orders.

Non-Postal Shipments: Goods shipped through non-postal channels, all applicable duties will apply.

Revocation of De Minimis