Amendment to Duties to Address the Flow of Illicit Drugs across our Northern Border

Executive Orders

TLDR

This executive order amends previous orders to impose a 25% tariff on most Canadian goods and a 10% tariff on energy products, while eliminating the $800 de minimis threshold that previously allowed low-value shipments to enter duty-free. Set to take effect March 4, 2025, these changes will increase costs for U.S. consumers buying from Canadian sellers.

This executive order amends previous orders related to imposing duties on goods from Canada to address the flow of illicit drugs across the northern border.

If you buy something from an individual seller in Canada—whether it’s handmade goods, small-batch products, or anything else—it’s likely to cost extra because of the new tariffs. Here’s what’s happening:

  1. New tariffs: President Trump’s executive orders impose a 25% tariff on most goods coming from Canada, with a 10% tariff on energy-related products.

  2. De minimis changes: The $800 de minimis threshold, which previously allowed many low-value shipments to enter the U.S. duty-free, is being eliminated for Canadian goods.

  3. Implementation date: These changes are set to take effect on March 4, 2025.

  4. Impact on small sellers: If you’re buying something from a small business or individual seller in Canada, their products will become more expensive for U.S. buyers because of these tariffs.

  5. Additional costs: You might have to pay the extra tariff charges when your order arrives, or online platforms and shipping companies may start collecting these fees at checkout.

  6. Exceptions: There’s currently a pause on implementing these tariffs, but it’s set to expire on March 4, 2025, unless further agreements are reached.

In short, starting March 4, 2025, you can expect to pay more for items purchased from Canadian sellers—whether it’s through an online marketplace or directly—because of the new tariffs.

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:

Section 1.

Amendment.

Executive Order 14193 of February 1, 2025 (Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border), as amended by Executive Order 14197 of February 3, 2025 (Progress on the Situation at Our Northern Border), is further amended by revising section 2(h) to read as follows:

“(h) Duty-free de minimis treatment under 19 U.S.C. 1321 is available for otherwise eligible covered articles described in subsection (a) and subsection

(b) of this section. Such duty free de minimis treatment shall cease to be available for such otherwise eligible covered articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable pursuant to subsection (a) and subsection (b) of this section for covered articles otherwise eligible for de minimis treatment.”

Sec. 2.

General Provisions.

(a) 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.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

© This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE,
March 2, 2025.