Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border
President Trump issued an executive order amending previous tariffs on Canadian goods.
The action modifies the duties imposed on certain Canadian automotive parts and potash to mitigate potential disruptions to the U.S. automotive sector and its workforce.
The amendment clarifies the goods excluded from increased tariffs and schedules a reduction in potash duties from 25 percent to 10 percent, effective March 7th, 2025.
The order emphasizes that it does not create any legally enforceable rights.
Arguments For
Minimize disruption to the US automotive industry: The order aims to reduce economic harm to the American automotive sector by adjusting tariffs on Canadian automotive parts.
Support for American Jobs: By easing tariffs, the order seeks to protect American jobs in the automotive industry and related sectors.
Strengthened North American Supply Chains: The adjustment aligns with efforts to bolster North American supply chains and reduce reliance on other regions for automotive parts.
Legal Basis: The order cites the International Emergency Economic Powers Act, the National Emergencies Act, and sections of the Trade Act of 1974 and Title 3, United States Code, as legal basis for the presidential action.
Arguments Against
Potential impacts on US competitiveness: Lowering tariffs might affect the competitiveness of US-made automotive parts.
Implementation challenges: Determining exactly which goods qualify for tariff reductions and ensuring fair implementation pose logistical challenges.
Unintended consequences: The change in tariffs may have unforeseen consequences on related industries or international trade relations.
Alternative approaches: Alternative measures, such as targeted subsidies or industry-specific support programs, could have addressed the issue without altering tariffs.
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq. ), the National Emergencies Act (50 U.S.C. 1601 et seq. ), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
This opening statement asserts the president's legal authority to issue the order, citing several relevant acts of Congress as legal justification.
It establishes the order's formal basis in law.
Section 1. Background. Automotive production is a major source of Unites States employment and innovation and is integral to United States economic and national security. The American automotive industry as currently structured often trades substantial volumes of automotive parts and components across our borders in the interest of bringing supply chains closer to North America. In order to minimize disruption to the United States automotive industry and automotive workers, it is appropriate to adjust the tariffs imposed on articles of Canada in Executive Order 14193 of February 1, 2025 (Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border).
This section provides context, explaining the importance of the automotive industry to the U.S. economy and national security.
It justifies the tariff adjustments as necessary to protect the industry from disruptions caused by previous tariffs imposed in Executive Order 14193.
Sec. 2. Product Coverage. (a) Articles that are entered free of duty as a good of Canada under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada, shall not be subject to the additional ad valorem rate of duty described in section 2(a) or section 2(b) of Executive Order 14193. (b) The additional rate of duty on potash that is not subject to subsection (a) of this section shall be reduced to 10 percent in lieu of 25 percent. (c) The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.
This section details the specific changes to the tariffs.
Subsection (a) exempts certain Canadian goods (defined by specific HTSUS codes) from additional duties.
Subsection (b) reduces the tariff on Canadian potash.
Subsection (c) specifies the effective date of these changes.
Sec. 3. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department, agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
DONALD J. TRUMP
THE WHITE HOUSE, March 6, 2025.
This section includes general provisions.
Subsection (a) clarifies that the order doesn't override existing legal authority within government departments.
Subsection (b) states the order's implementation is subject to funding.
Subsection (c) explicitly states that the order does not create any legally enforceable rights.