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Canada & Mexico: 25% Tariffs on Most Imports, Auto & USMCA Exemptions | Effective March 4 2025 (In Effect 2 Days)

March 7, 2025

Graphic showing car exemption until April 2, potash at 10%, and USMCA goods free from tariffs.

On March 4 2025, 25% tariffs on most Canada/Mexico imports took effect; auto imports exempted March 5, USMCA goods (38% Canada, 49% Mexico) exempted March 6. Canadian potash gets a 10% rate—short-term relief for cars, gardening, and home tools.

You blinked, and tariffs arrived—25% on most Canada and Mexico imports, screens and salsa alike. Then came exemptions that feel like whack-a-mole. Your Amazon cart might breathe a sigh of relief…for now. Let’s sort out which products dodge the hit and which still bear the brunt.

Announcement Details
  • March 4, 2025: 25% tariffs on all imports from Canada and Mexico take effect at 12:01 a.m. ET Reuters.
  • March 5, 2025: Automotive imports compliant with USMCA rules are exempted until April 2, 2025 Reuters.
  • March 6, 2025: All USMCA-covered goods (≈ 38% of Canadian and 49% of Mexican imports) receive a one-month reprieve; non-USMCA Canadian potash faces a reduced 10% tariff ReutersReuters.
Country Import Breakdown (2024 Values)
  • Canada (≈ $431 billion):
    • Mineral fuels & oils: $131.9 billion
    • Machinery & transport equipment: $106 billion
    • Automobiles & parts: $51 billion Reuters
    • Manufactured goods: $52 billion
  • Mexico (≈ $380 billion):
    • Vehicles & parts: $130 billion Reuters
    • Electrical machinery: $85.6 billion Reuters
    • Mineral fuels & oils: $25 billion Reuters
    • Agricultural products: $22.3 billion Reuters
Consumer-Product Impacts
  • Automotive: Exempt until April 2, but post-reprieve prices on cars (Ford, GM, Toyota) could jump 5–10% as 25% tariffs resume Reuters.
  • Home & Garden: Canadian non-USMCA potash (used in online-sold fertilizers) stays at 10%, cushioning spring planting and home gardening costs Reuters.
  • Electronics & Appliances: Non-USMCA machinery—like kitchen mixers and power tools sold on Amazon—face a 25% levy, potentially adding 8–12% to e-commerce prices Reuters.
Insights & Predictions
  • Short-Term Relief: One-month exemptions give retailers time to sell down inventory without steep price hikes. Expect promotional “pre-tariff” deals Politico.
  • Longer-Term Friction: If border-security goals aren’t met by April 2, full 25% duties could snap back, leading to staggered price spikes in Q2. Supply-chain realignments may follow Reuters.

Keep an eye on our curated product picks below—shop smart, beat the tariffs, and maybe snag a deal before duties snap back.