Imposing Duties To Address the Situation at Our Southern Border

Feb 7, 2025

Summary

Adds a 25% tax on all products from Mexico to pressure its government to stop illegal immigration and drug trafficking into the United States.

What problem does this solve?

The U.S. faces a national emergency from a large number of people and illegal drugs crossing the southern border, which Mexico has not stopped. This order adds a 25% tax on Mexican goods to force Mexico to take action against these problems.

What does this order do?

New 25% tax on Mexican goods

Adds an additional 25% ad valorem duty, or tax, on all products imported from Mexico.

Expands national emergency

Broadens the national emergency at the southern border to include Mexico's failure to stop drug traffickers, human smugglers, and other criminals.

Allows for higher taxes if Mexico fights back

Authorizes the President to increase the tax on Mexican goods if Mexico's government responds by placing its own taxes on U.S. products.

Creates a way to remove the tax

The Secretary of Homeland Security will tell the President if Mexico is doing enough to stop the crisis, which could lead to the removal of the tax.

Ends small package tax exemption

Removes the 'de minimis' rule for Mexican goods, meaning even small, low-value shipments will be subject to the new tax.

Who does this affect?

Importers of Mexican goods
The Government of Mexico
American consumers

What is the real world impact?

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Pressures Mexico to increase border enforcement

Uses economic penalties (tariffs) to force the Mexican government to take more aggressive action against illegal immigration and drug cartels operating within its borders.

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Raises costs for American businesses and consumers

Could be criticized for increasing the price of goods from Mexico, which may harm U.S. companies that rely on Mexican imports and lead to higher prices for consumers.

When does this start?

This order sets multiple deadlines, with new taxes on Mexican goods starting on February 4, 2025.

New tax on Mexican goods begins

Starting at 12:01 a.m. eastern time on February 4, 2025, a 25% tax will be applied to all goods from Mexico entering the U.S.

Exception for goods already shipped

Goods that were already on their way to the U.S. before 12:01 a.m. eastern time on February 1, 2025, will not be subject to the new tax.

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E.O. 14198 - Progress on the Situation at Our Southern Border