On Saturday, Feb. 1, President Donald Trump issued three executive orders (EOs) to impose tariffs on imports from China, Mexico and Canada effective 12:01 a.m. eastern time on Feb. 4, 2025.

• The EO targeting China imposes a 10% tariff on all goods. It applies on top of the existing tariffs on a range of specific goods imported from China that were imposed during President Trump’s first term as well as during the Biden administration.

• The EO targeting Canada imposes a 25% tariff on all imports other than energy resources, which are subject to a 10% tariff.

• Energy resources that are covered by the 10% rate include: crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3), and as otherwise included in the Federal Register

• The EO targeting Mexico imposes a 25% tariff on all imports.

Additionally, under the EOs, all Chinese, Mexican and Canadian imports will be ineligible for “de minimis” treatment, which allows imports valued at $800 or less to enter the United States duty-free.

No Exclusion Process

Unlike existing tariff authorities, the EOs do not provide for an “exclusion” process through which specific imports could be exempted. On their face, these tariffs are not intended to address trade imbalances but to combat the influx of illicit drugs, notably fentanyl, through the northern and southern borders, as well as illegal immigration. The EOs note that the president will withdraw the tariffs when he determines that the countries have “taken adequate steps to alleviate” the crises. However, the EOs do not specify goalposts for the countries to meet.

Each EO also allows the president to increase the new tariffs in response to the targeted countries imposing retaliatory tariffs on American exports.

Canada, Mexico and China Respond

Canada’s Prime Minister Justin Trudeau announced he will impose a 25% tariff on approximately $20 billion worth of U.S. goods including beer, wine, fruits, vegetables, perfume, clothing and shoes, and an expanded list of $85 billion worth of goods in the coming weeks. Mexico’s President Claudia Sheinbaum also announced she would implement “tariff and non-tariff measures” in response to the action. China announced it will challenge the tariffs at the World Trade Organization, a largely symbolic move, and take unspecified countermeasures.

Novel Use of IEEPA

In imposing the tariffs, President Trump invoked several statutes, including the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), Section 604 of the Trade Act of 1974 and Section 301 of title 3, United States Code. This is the first time that IEEPA has been used to impose tariffs. Given the unprecedented nature of the president’s actions, it is unclear what role Congress will play in this process. IEEPA does require the president to consult with Congress “in every possible instance” before exercising any of the authorities granted under the statute. After the declaration of a national emergency, the president must transmit a report to Congress specifying:

• “the circumstances which necessitate such exercise of authority;
• why the President believes those circumstances constitute an unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States;
• the authorities to be exercised and the actions to be taken in the exercise of those authorities to deal with those circumstances;
• why the President believes such actions are necessary to deal with those circumstances; and
• any foreign countries with respect to which such actions are to be taken and why such actions are to be taken with respect to those countries.”

After submitting the initial report, the president must submit additional information every succeeding six-month period that the authorities are exercised. However, emergencies declared under IEEPA do not automatically sunset and other emergencies declared under the act have been in place for decades. The emergency may be terminated in one of three ways: (1) by the president, (2) by a privileged joint resolution of Congress, or (3) automatically, if the president does not publish a notice in the Federal Register stating that the emergency is to continue in effect on the anniversary of its declaration. Additionally, this novel use of the authority will likely prompt legal challenges, but courts have often deferred to the president on the use of such national security authorities.