The recent launch of the U.S. government’s “Liberation Day” tariffs, effective April 2025, introduced new complexities for businesses sourcing goods from Canada and Mexico. While both countries are not directly impacted by the new “reciprocal” tariffs, they are still affected by tariffs on goods that do not comply with USMCA (United States-Mexico-Canada Agreement) rules of origin.
Canada and Mexico are vital to the U.S. food supply, together accounting for a substantial percentage of all U.S. food imports. This makes any changes to tariff structures particularly significant for U.S. food businesses relying on imports from these neighboring countries.
Under the new rules, products from Canada and Mexico that do not meet USMCA standards will face additional duties of up to 25%. This includes items such as imported vehicles, vehicle parts, and certain energy and potash products, which will be subject to a 10% tariff. However, the good news for businesses that rely on compliant goods is that those adhering to USMCA rules of origin will continue to enjoy a 0% tariff rate, providing significant savings on imports from Canada and Mexico.
While the impact on non-compliant goods is immediate, businesses should be aware of potential changes, as Mexico’s non-compliant goods could face an additional 12% tariff in the future, depending on the status of certain IEEPA (International Emergency Economic Powers Act) orders related to migration or fentanyl.
For businesses involved in food production and distribution, particularly those working with Canadian and Mexican suppliers, it’s important to review the origins of the products you source to ensure they comply with USMCA. By securing goods that meet these standards, you can avoid extra duties and benefit from tariff-free trade between the U.S., Canada, and Mexico.
At Noon International, we are committed to supporting our clients with seamless sourcing and import strategies to navigate the complexities of these trade shifts. For businesses looking to minimize the impact of tariffs and maintain smooth operations, we’re here to help with your supply chain needs. Reach out to discuss how we can help optimize your sourcing and compliance strategy under the new trade rules.
The Noon International Team
Trusted Supplier of Frozen Fruits & Vegetables for 49 Years
www.noon-intl.com
+1 (206) 283-8400
sales@noon-intl.com
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