Capitol Compass – Special Edition on Tariff Actions

Published on February 3, 2025 | Written by Kellen Staff


Updates on Tariff Actions

Feb. 4, 2025, 9am ET: The United States imposed a 10% tariff on Chinese imports starting today. In response, China retaliated with targeted tariffs and issued warnings to several U.S. companies, including Google, about potential sanctions. President Trump is scheduled to speak with Chinese President Xi Jinping in the coming days.

Feb. 3, 2025, 5pm ET:  After discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, President Donald Trump announced a 30-day delay in imposing tariffs on Mexico and Canada. This delay follows agreements by both neighboring countries to enhance border security efforts. As of this posting, tariffs on China remain in effect and are scheduled to take effect on Tuesday.

What Happened?  

On Saturday, February 1st, the White House officially announced that President Donald Trump would impose new tariffs on Canada, Mexico, and China. Senior figures on Capitol Hill were briefed on the decision. 

Trump is imposing a 25% tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff. 

The White House fact sheet is available here.  

On What Authority did the President do This?

Citing an emergency situation from the extraordinary threat posed by undocumented immigrants and illegal drug trafficking, including fentanyl, the President exercised his authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on Mexico, Canada, and China. This is an unprecedented action under the IEEPA, and it is unchartered legal territory.  

The Executive Orders were published on February 1, 2025.  

When Will this Take Effect? For How Long?  

The tariff actions against Mexico, Canada, and China will begin on February 4, 2025.  

It is unclear how long the tariffs will be imposed. The order notes that the tariffs will be removed when the flow of migrants and illegal fentanyl into the United States is alleviated.  

What was the Response?  

Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced counter-tariffs on Saturday. 

Canada will impose 25% tariffs on $155 billion worth of U.S. goods, starting with $30 billion on Tuesday and followed by $125 billion in 21 days. 

Mexico plans retaliatory “tariff and non-tariff measures,” in retaliation for Trump’s move, but the potential scope was not clear.  

China said it would file a legal case against the United States at the World Trade Organization and vowed to take “corresponding countermeasures” without offering details.  

Reactions from the business, manufacturing, and building trades were swift and harsh.  

See a sampling of statements from the U.S. Chamber of Commerce, the National Association of Manufacturers, the National Association of Home Builders, and the Distilled Spirits Council

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