Feb. 6, 2025 — The Vision Council (TVC) released a statement regarding President Donald Trump’s executive orders that raise tariffs on imports from Mexico, Canada, and China effective Feb. 4.

The orders impose a 25% tariff on all goods from Mexico, a 25% tariff on Canadian goods excluding energy resources (which will see a 10% increase), and a 10% tariff on goods from China. The tariffs on Mexican imports have been paused for one month while negotiations with the Mexican government continue.

These new tariffs are in addition to existing duties, fees, or other charges on imported products. Goods that were in transit before Feb. 1 will not be subject to the increases.

The executive orders were issued under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA). President Trump cited concerns over undocumented migration, synthetic opioids such as fentanyl, and other drugs as the basis for declaring national emergencies justifying the tariff increases.

The measures apply to all goods originating from Mexico, Canada, or China, including those that would typically qualify for duty-free status under the United States-Mexico-Canada Agreement. The new tariffs on Chinese imports extend to products that were previously exempt from the China 301 duties. No exclusion process has been outlined in the executive orders.

Additionally, the orders prohibit duty drawback, preventing businesses from obtaining refunds on tariffs for goods that are later exported to other countries. This means companies will bear the full cost of the imposed duties without recourse for reimbursement, TVC shares.

The executive orders also include provisions for further tariff increases if Canada, Mexico, or China retaliate. Canada has announced its own 25% retaliatory tariff on select U.S. goods, with additional products to be targeted within the month. The initial list includes beer, liquor, wine, fruit, fruit juices, clothing, sporting equipment, and household appliances. Mexico has also indicated plans for retaliation but has not yet specified details on tariff rates, affected goods, or a timeline for implementation.

TVC notes that the situation remains fluid as trade negotiations and responses from affected countries continue. Further developments are expected as governments evaluate their economic strategies in response to the new tariffs.