The Department of Homeland Security has announced new duties on products imported from Canada to enforce a series of executive orders aimed at controlling the flow of illegal drugs across the U.S.-Canada border. Starting March 4, 2025, these duties include a 25% additional charge on most Canadian products and a 10% charge on Canadian energy imports, except for specific exemptions. The changes are part of efforts to amend the Harmonized Tariff Schedule of the United States (HTSUS) and address national security concerns related to drug trafficking. The notice also specifies that certain exemptions, such as duty-free treatment for low-value items, will be phased out once systems to collect the appropriate tariffs are in place.
Simple Explanation
The U.S. is making some Canadian goods more expensive by adding extra charges on them to help stop bad things from crossing the border, like drugs. Starting March 4, 2025, many products from Canada will cost 25% more, and Canadian energy will cost 10% more, with some exceptions.