There’s no sugarcoating it—if you move freight from Mexico, Canada, or China, your costs just increased. The latest round of tariffs has gone into effect, and there’s no grace period to soften the impact. Here’s what it means for importers, carriers, and everyone in the supply chain.
Mexico & Canada: 25% Tariffs Now in Place
Starting March 4, 2025, the U.S. has imposed a 25% tariff on most imports from Mexico and Canada. The only exception is energy products from Canada, which face a 10% duty instead.
There are a few carve-outs, including personal-use goods, certain humanitarian donations, and some Chapter 98 HTSUS entries—but if your shipment was already on the water or in transit when this hit, too bad. There’s no exemption for that.
If you’re working with Foreign Trade Zones (FTZs), keep in mind that goods admitted after March 4 must enter under privileged foreign status—which means the duty rate is locked in at the time of admission. No wiggle room there.
China: Tariffs Increase to 20%, and It’s Retroactive
If you move freight from China, brace yourself. The previous 10% tariff was bumped to 20%, and the increase applies retroactively to goods entered since February 4. That means if your shipments cleared under the 10% rate, you now owe the difference.
The only exception? Goods already in transit before February 1—but that carve-out expires March 7. After that, everything gets hit with the full 20% tariff.
Steel & Aluminum: Higher Costs, More Paperwork, and a 200% Tariff on Russian Metal
Starting March 12, a 25% tariff will apply to even more steel and aluminum derivatives. Importers also need to report smelting and casting locations for aluminum imports, which means more documentation, more compliance checks, and more headaches.
And does any part of your steel or aluminum shipment involve Russian-origin material? It’s now subject to a massive 200% tariff. It doesn’t matter where the final product was processed—if Russia was involved, the cost just skyrocketed.
What’s Next for Importers and Freight Operators?
These tariffs aren’t just raising costs—they’re changing how freight moves. Canada and China are already responding with retaliatory tariffs, which means more disruptions across key industries like agriculture and manufacturing.
For carriers, brokers, and importers, now’s the time to get strategic about:
- Looking at alternate sourcing options to reduce tariff exposure.
- Using FTZs and bonded warehouses to delay duty payments.
- Double-checking customs classifications to avoid unnecessary costs.
At Hight Logistics, we’re in the trenches with you—moving the freight, keeping it compliant, and ensuring you’re not paying a penny more than you have to. If you’ve got shipments on the way and need to know how these tariffs impact your bottom line, call us. Let’s keep your freight moving.
