TradeLane

In March 2025, the U.S. imposed a 25% tariff on certain goods from Canada and Mexico under the International Emergency Economic Powers Act (IEEPA), targeting efforts to disrupt the supply chain for fentanyl and related precursors. For importers, these duties are not just a regulatory development; they are a direct financial hit. Businesses already facing traditional customs duties now need to absorb another layer of cost that could significantly affect pricing, planning, and profitability.

But there is a potential solution: the United States-Mexico-Canada Agreement (USMCA).

In a significant development for the automotive industry, the U.S. government announced on April 29^th a relief mechanism for automakers facing 25% Section 232 tariffs on non-USMCA qualifying imported parts that became effective May 3rd. This policy supports manufacturers who assemble vehicles in the United States and offers hope in these difficult times while promoting transparency and future production commitments.

A bonded warehouse, renowned for its secure storage, allows for the deferment of customs duty payment until the goods reach their destination. Large distributors often seek this secure environment as their distribution center. While the usage principles may be similar, each country’s unique management regulations and incentives create comparative advantages to be considered in the decision-making process.

This helps to avoid potential unintended consequences regarding FTA eligibility, providing a sense of reassurance to the business owners, logistics managers, and import/export professionals.

In recent updates on the Section 232 tariffs on Aluminum and Steel, the President has clarified “tariff stacking” and its implications for importers. This executive order aims to prevent unintended burdens as a result of the tariffs while safeguarding national security interests. 

In an increasingly competitive global marketplace, reducing landed costs without compromising compliance is more critical than ever. One strategic opportunity for U.S. importers lies in leveraging the First Sale for Export (FSFE) valuation methodology. When correctly applied, FSFE can bring significant duty savings while meeting all regulatory expectations from U.S. Customs and Border Protection (CBP).