PilieroMazza recently published a client alert regarding executive orders issued on February 1, 2025, imposing additional tariffs on products from Canada, Mexico, and China, and the decision to delay the tariffs on Canada and Mexico until March 6, 2025. This client alert provides government contractors with an update on these tariffs—which may increase the cost of performance or lead to supply shortages, resulting in delays—and how to insulate your business.
To summarize, products from Canada and Mexico were subject to a 25% tariff, except for “energy or energy resources” from Canada, which were subject to a 10% tariff. These tariffs were delayed for 30 days, until March 6, 2025, following commitments from Canada and Mexico to enhance their border security. It was noted that retaliatory measures from both Canada and Mexico were likely if the tariffs went into effect. The tariffs on Chinese products went into effect on February 4, 2025, resulting in retaliatory action by China.