Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border
Signed: March 6, 2025
Published: March 11, 2025
Document Number: 2025-03990
📋Summary
This executive order changes earlier Canada-related tariffs that were imposed to address the flow of illicit drugs across the U.S. northern border, aiming to reduce disruption to North American auto supply chains. It affects importers of Canadian goods, especially companies bringing in auto parts and other products that qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement (USMCA), as well as importers of potash. It exempts USMCA-qualifying Canadian goods from the additional tariffs created by the earlier order, and it lowers the extra tariff on certain non-exempt potash imports from 25% to 10%. These changes apply to covered goods entered for U.S. consumption on or after 12:01 a.m. Eastern time on March 7, 2025.
💼Business Impact
This order most directly affects **U.S. manufacturers and importers that source from Canada**, especially **automotive OEMs/suppliers** and any business importing **potash** (fertilizer inputs) outside USMCA-preferred treatment. It creates a major **compliance opportunity**: **Canadian goods that qualify as “goods of Canada” under USMCA (HTSUS General Note 11 and related Chapter 98/99 provisions) are exempt from the additional duties**, while **non-qualifying potash** faces a reduced but still material **10% tariff** (down from 25%). Businesses should **immediately validate USMCA origin qualification and documentation (supplier certifications, bills of materials, origin determinations), update customs classifications/entry instructions with brokers, and re-price or renegotiate contracts for any non-qualifying potash or parts**—the changes apply to entries **on/after March 7, 2025**.
Full Text
Executive Order 14231 of March 6, 2025
Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
Section 1 . Background. Automotive production is a major source of United States employment and innovation and is integral to United States economic and national security. The American automotive industry as currently structured often trades substantial volumes of automotive parts and components across our borders in the interest of bringing supply chains closer to North America. In order to minimize disruption to the United States automotive industry and automotive workers, it is appropriate to adjust the tariffs imposed on articles of Canada in Executive Order 14193 of February 1, 2025 (Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border).
Sec. 2 . Product Coverage. (a) Articles that are entered free of duty as a good of Canada under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada, shall not be subject to the additional ad valorem rate of duty described in section 2(a) or section 2(b) of Executive Order 14193.
(b) The additional rate of duty on potash that is not subject to subsection (a) of this section shall be reduced to 10 percent in lieu of 25 percent.
(c) The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.
Sec. 3 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 11786)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 6, 2025.