The President of the United States has issued an amendment to existing duties, focusing on automotive production and trade with Canada. The move aims to support the American automotive industry by adjusting tariffs that were previously imposed under Executive Order 14193. This order was initially set to address the flow of illicit drugs across the northern border.
The amendment highlights the importance of automotive production as a significant source of employment and innovation in the United States, emphasizing its role in economic and national security. It acknowledges that substantial volumes of automotive parts are traded across borders to strengthen supply chains within North America.
Under this new directive, articles entering duty-free from Canada, as outlined in general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), will not be subject to additional ad valorem rates specified in sections 2(a) or 2(b) of Executive Order 14193. Additionally, the duty rate on potash not covered by these provisions will be reduced from 25 percent to 10 percent.
These modifications will take effect for goods entered for consumption or withdrawn from warehouses starting at midnight Eastern Standard Time on March 7, 2025.
The order clarifies that it does not alter any legal authority granted to executive departments or agencies nor does it affect budgetary functions managed by the Office of Management and Budget. Furthermore, it states that no rights or benefits are created through this order enforceable against the U.S. government or its representatives.
"Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department, agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative or legislative proposals," reads part of Section 3(a).
This announcement was made official by President Donald J. Trump at The White House on March 6, 2025.
