Through executive orders issued on Feb. 1, the White House announced that President Trump would impose 25% tariffs on all imports from Mexico and Canada and 10% tariffs on all imports from China beginning on Feb. 4.
Trump cited his authority within the International Emergency Powers Act (IEEPA), which grants the president broad authority to act against an “unusual and extraordinary threat” to U.S. national or economic security originating outside the United States.
In this case, the White House cites the national emergency with respect to the grave threat posed by the influx of illegal aliens and illicit drugs into the United States, including references to Proclamation 10886 of Jan. 20, 2025.
Canadian Prime Minister Justin Trudeau announced on Feb. 3 that new U.S. tariffs would be paused for at least 30 days while the two governments work together. This comes after a call between the two leaders in which Canada agreed to implement a $1.3 billion border plan and commit nearly 10,000 frontline personnel to protecting the border.
SIA has published an additional post explaining the U.S. tariffs on imported steel and aluminum.
How Tariffs Could Change the Security Industry
By using the IEEPA, the president must identify the specific threat and the actions necessary to address the threat, consult and report to Congress and renew the findings and justification through periodic reporting after its initial use. Congress may terminate the emergency by passing a joint resolution; however, to this date Congress has never overturned an emergency under IEEPA.
In past scenarios where tariffs were imposed through executive branch action (they can also be imposed via congressional acts), Congress typically acted in an advocacy role, urging either the implementation or removal of tariffs during review periods and throughout the administrative process, including through submitting testimony in favor of exclusions when a process was established to do so.
The administration is not extending an exclusion process at this time, and additionally the orders suspend “de minimis” exemption for product shipments from China, Mexico and Canada that are impacted by these actions, meaning tariffs will now be collected on imports in small shipments valued below $800 as well.
President Trump’s secretary of commerce nominee, Howard Lutnick, suggested in his January confirmation hearing that Mexico and Canada could avoid the tariffs if they took appropriate action to address Trump’s concerns.
The administration has made it clear that it believes “tariffs are a powerful, proven source of leverage for protecting the national interest” and that President Trump is “using America’s economic position as a tool to secure our borders against illegal migration and combat the scourge of fentanyl.”
The Rundown
The administration – very generally – lays out actions in each executive order that would allow the president to grant relief at his discretion:
- Canadian tariffs: In Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border, the secretary of homeland security shall inform the president of any circumstances that indicate that the government of Canada has taken adequate steps to alleviate this public health crisis through cooperative enforcement actions.
- Mexican tariffs: In Imposing Duties to Address the Situation at Our Southern Border, the secretary of homeland security shall inform the president of any circumstances that indicate that the government of Mexico has taken adequate steps to alleviate the illegal migration and illicit drug crisis through cooperative actions.
- Chinese tariffs: In Imposing Duties to Address the Synthetic Opioid Supply chain in the People’s Republic of China (PRC), the secretary of homeland security shall inform the president of any circumstances that indicate that the PRC government has taken adequate steps to alleviate the opioid crisis through cooperative actions.
The new duty rates on specific imports from Canada, Mexico and China determined through modifications to the Harmonized Tariff Schedule of the United States (HTSUS) will be provided via public notice in the Federal Register. The modifications to HTSUS will be effective on or after 12:01 a.m. EST on Feb. 4, 2025. We expect these changes to be broad and encompass all imports from these countries, as directed by the executive orders. All tariffs will be in addition to any other existing tariffs imposed pursuant to other authorities.
How You Can Get Involved
Initial reactions from foreign leaders have varied. On Feb. 1, before the 30-day tariff delay, Trudeau announced that Canada would begin imposing retaliatory tariffs on more than $100 billion of U.S. goods. Beijing denounced the U.S.’ action, calling it a “serious violation” of international trade rules, but left the door open for further engagement, as it was hit with tariffs well below numbers floated during Trump’s campaign.
After pushing back on the Trump administration’s rationale that the Mexican government has alliances with criminal organizations, Mexican President Claudia Sheinbaum announced plans to send 10,000 soldiers to her country’s border to prevent drug trafficking. The commitment earned Mexico a one-month pause on the planned 25% tariff, confirmed by publicly by both leaders after a conversation between the two on Feb. 3.
To assist in its engagement with the administration and Congress in support of the security industry on this critical issue, the Security Industry Association (SIA) is gathering feedback to “accurately assess how the industry would be impacted by a long-term implementation of these proposed tariffs.”
SIA has issued a 10-question anonymous survey to help them collect thoughts from the industry on its likely responses. Individuals who have taken the survey previously are encouraged to take the updated survey that now reflects new U.S. tariffs on imported steel and aluminum.
Please complete the survey by Monday, Feb. 10, 2025. If you have any questions or comments, contact me at [email protected].
Lauren Bresette is senior manager of government relations for the Security Industry Association. The original version of this post appeared on SIA’s website and is used with permission.
