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On March 6, the White House announced that products of Canada and Mexico that satisfy the rules of origin of the United States-Mexico-Canada Free Trade Agreement (USMCA) will be eligible to enter the United States without being subject to the country-level tariffs that went into effect on March 4. The announcement does not have an end date to the pause, but it is currently being widely reported that the pause is set to expire on April 2.
Please note, this pause does not impact the separate 25% tariffs on steel and aluminum.
The USMCA rules of origin are fairly complex and can be found in 19 CFR Part 182 Appendix A. NPGA encourages all importers of record to seek legal advice, but NPGA anticipates that most propane from Canada will be able to qualify for USMCA origin, and therefore for duty-free treatment under the pause. However, importers should consult counsel about their specific situation.
Canada’s Finance Minister has announced that Canada would delay implementation of a portion of previously announced retaliatory tariffs. Mexico has not yet implemented any retaliatory tariffs.
NPGA’s new Tariff Information Center will be updated shortly.
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