U.S. enforces new tariffs on goods from Canada, Mexico, China

The U.S. Customs and Border Protection (CBP) has revealed new tariffs on imports from Canada, Mexico, and China, effective February 4. This policy change will also end duty-free status for low-value shipments of these items.

Most Canadian and Mexican goods will be subject to a 25% ad valorem tariff, with a 10% tariff on certain Canadian energy products. Goods from China will incur a 10% tariff.

These tariffs will apply to all goods entered for consumption or withdrawn from warehouses starting at 12:01 a.m. Eastern Standard Time on February 4.

In a statement dated February 2, the CBP indicated that more details, including changes to the Harmonized Tariff Schedule, will be published in a forthcoming Federal Register Notice.

Technical updates on the suspension of duty-free treatment for "de minimis" shipments under 19 U.S.C. 1321 will follow the publication of the Federal Register Notice. The CBP will keep trade partners informed through the Cargo Systems Messaging Service (CSMS).

Industry analysts believe that Pakistan, India and others could benefit from the new tariffs. With the US imposing higher tariffs on goods from Canada, Mexico, and China, American businesses may look to other countries for sourcing their products.

This could lead to increased exports from Pakistan and India, particularly in sectors like textiles, garments, and pharmaceuticals.

However, it is important to note that the extent of the benefit will depend on various factors, including the competitiveness of Pakistani and Indian industries, their ability to meet U.S. quality standards, and their capacity to handle increased demand.