Amendment to Duties To Address the Flow of Illicit Drugs Across Our Southern Border
Signed: March 6, 2025
Published: March 11, 2025
Document Number: 2025-03991
📋Summary
This executive order changes earlier tariffs on goods from Mexico that were imposed to address illicit drug flows across the southern border, aiming to reduce disruption to the U.S. auto industry and related supply chains. It affects importers of Mexican goods, especially companies bringing in 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 “goods of Mexico” from the additional tariff created by the prior order, and it lowers the added tariff on certain potash from 25% to 10% when it does not qualify for the exemption. These changes apply to covered goods entered for U.S. consumption (or withdrawn from warehouses for consumption) starting at 12:01 a.m. Eastern time on March 7, 2025.
💼Business Impact
This order most directly affects **automotive manufacturers and suppliers** and any importer using **USMCA (“general note 11”) preferential treatment for goods of Mexico**, because those qualifying goods are **exempted from the additional ad valorem duty** imposed under EO 14194—reducing near-term cost and disruption for North America–integrated supply chains. It also impacts **agriculture and fertilizer/chemical users** (and potash importers/distributors) by **cutting the extra duty on non‑USMCA potash to 10% (from 25%)**, which may lower input costs but still leaves a tariff premium versus exempt/qualifying goods. Compliance-wise, businesses should expect tighter scrutiny on **country-of-origin and USMCA qualification documentation** (certifications, supplier affidavits, BOM/traceability) to ensure entries legitimately claim the exemption, and potash buyers should reassess sourcing and contracts based on the new rate. Immediate actions: **audit HTS classifications and USMCA eligibility for Mexico-sourced parts/components**, coordinate with customs brokers to apply the change for entries **on/after March 7, 2025**, and **reprice/renegotiate** procurement
Full Text
Executive Order 14232 of March 6, 2025
Amendment to Duties To Address the Flow of Illicit Drugs Across Our Southern 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 Mexico in Executive Order 14194 of February 1, 2025 (Imposing Duties to Address the Situation at Our Southern Border).
Sec. 2 . Product Coverage. (a) Articles that are entered free of duty as a good of Mexico 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) of Executive Order 14194.
(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 11788)(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.