Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border

Mar 11, 2025

Summary

Changes taxes on some goods from Canada to help the American car industry and its workers.

What problem does this solve?

Previous taxes on Canadian goods hurt the American car industry, which needs parts from Canada. This order removes the tax on car parts and lowers it on other goods to protect U.S. jobs.

Who does this affect?

U.S. automotive industry
Canadian exporters
U.S. agricultural sector

What does this order do?

Exempts certain Canadian goods from tariffs

Removes extra taxes on Canadian goods that are already duty-free under the US-Mexico-Canada trade agreement, specifically helping the auto industry.

Reduces the tariff on potash

Lowers the extra tax on potash from Canada from 25 percent down to 10 percent.

What is the real world impact?

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Protects the U.S. auto industry

Removes tariffs on Canadian auto parts to prevent disruptions and protect American jobs, as the industry relies on cross-border trade for its supply chains.

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Adjusts economic pressure on Canada

Reduces the financial impact of previous tariffs, potentially weakening the U.S. negotiating position on stopping the flow of illegal drugs from Canada.

When does this start?

The tariff changes take effect at 12:01 a.m. eastern standard time on March 7, 2025.