US Excludes India from New Import Tariffs as Trump Targets China, Mexico, and Canada. US President Donald Trump has declared new tariffs on imports from China, Mexico, and Canada. This announcement has deeply shocked all global leaders and financial markets. The main aim of these new tariffs, according to Trump, is to protect American workers and industries. This decision is going to affect many countries and their economies. To read about the new import tariffs as Trump and why and how he excluded India from it, read the complete article.
US Excludes India from New Import Tariffs
On February 1, 2025, Trump announced three executive orders directing the United States to impose new import tariffs on China, Mexico, and Canada. This change will take effect on February 4, 2025. The tariffs are an additional 25% ad valorem rate of duty on imports from Canada and Mexico and 10% on imports from China. The tariffs will apply to all imports except Canadian energy resources exports, which will face a 10% tariff instead. The tariffs will apply to all products that are entered for consumption or withdrawn from the warehouse for consumption on or after 12:01 a.m. Eastern Standard Time on February 4, 2025.
Trump always criticises India’s tariff structure. Despite these criticisms, Trump’s first executive order on February 1 to impose trade tariffs did not mention India. This is a signal that bilateral trade negotiations may be on the agenda later this month when Prime Minister Narendra Modi is scheduled to visit the US. International trade experts said that India has already begun lowering tariffs to favour exports by the US.
Tariff Rates and Products Covered
China: The additional tariffs for imports from Canada will be 10% ad valorem. The new tariffs will apply in addition to any other duties, fees, exactions, and charges applicable to the covered imports. The order was given by Trump’s reference to the tariffs on merchandise imported for consumption. Check the Federal Register or a subsequent Federal Register notice issued by the Department of Homeland Security (DHS) when the government releases information on the covered HTSUS codes and the new HTSUS Chapter 99 special tariff number.
Mexico: The additional tariffs for imports from Canada will be 25% ad valorem. The new tariffs will apply in addition to any other duties, fees, exactions, and charges applicable to the covered imports. Unlike Canada, there is no reduced tariff rate for energy or energy resources imported from Mexico. Trump did not give an order about the declaration of a complete list of covered Harmonised Tariff Schedule of the United States (HTSUS) codes.
Canada: The additional tariffs for imports from Canada will be 25% ad valorem. The new tariffs will apply in addition to any other duties, fees, exactions, and charges applicable to the covered imports. The tariffs will apply to all imports except Canadian energy resources exports, which will face a 10% tariff instead. Trump did not give an order about the declaration of a complete list of covered Harmonised Tariff Schedule of the United States (HTSUS) codes. To get the full details about the covered HTSUS codes and the new HTSUS chapter 99 special tariff number, they will likely be included in a technical annexe either when the government publishes the president’s order to the Federal Register or in a follow-up Federal Register notice by the Department of Homeland Security (DHS).
Reasons Behind the New Import Tariffs for China, Mexico, and Canada
Trump, at a press briefing, said, “We have big deficits with all three of them. And in one case, they’re sending massive amounts of fentanyl, killing hundreds of thousands of people a year with fentanyl. And in the other two cases, they’re making it possible for this poison to get in. We have about a $200 billion deficit with Canada and a $250 billion trade deficit with Mexico.
According to Trump, the tariffs are a result of illegal immigration and drug smuggling. The reason that is many people disagree with this reasoning, that U.S. government reports show that unauthorised border crossings from Mexico have decreased over the prior year and searches of fentanyl along the northern border are comparatively low. Trump has provided legal reasons but also has displayed a deep admiration for tariffs in general, arguing that they would make the US richer.