New Tariffs on Mexico, Canada, and China

On February 1, 2025, President Trump first issued a fact sheet and thereafter signed three executive orders imposing new tariffs on imports from Canada, Mexico, and China:

• 25% tariff on imports from Canada
• 25% tariff on imports from Mexico
• 10% tariff on imports from China

The tariffs on imports from China went into effect February 4, 2025. The tariffs on imports from Canada and Mexico were initially set to take effect February 4, 2025, but were delayed by one month following commitments made by both countries to secure the border and stop the flow of drugs into the United States.

In a Truth Social post on February 27, President Trump confirmed that the tariffs on Canadian and Mexican goods will go into effect on March 4. He also announced that China will face an additional 10% tariff starting March 4.

On March 3, 2025, President Trump issued an Executive Order increasing tariffs on imports from China from 10% to 20%. The Federal Register Notice for China can be found here.

On March 5, 2025, the Administration announced a temporary one-month pause on automobile tariffs for Mexico and Canada. Subsequently, on March 6, 2025, President Trump temporarily suspended tariffs on certain goods from Canada and Mexico that meet the United States-Mexico-Canada Agreement (USMCA) requirements, effective March 7, 2025. The Federal Register Notice for Canada can be found here, the Federal Register Notice for Mexico can be found here. Customs and Border Protection (CBP) issued guidance on the additional tariffs on imports from Canada and Mexico and China. The official CBP statement can be accessed here.

On March 11, 2025, two Federal Register Notices were issued, amending the Notice of Implementation of Additional Duties on Products of Mexico Pursuant to Executive Order 14194 and the Notice of Implementation of Additional Duties on Products of Canada Pursuant to Executive Order 14193. These Federal Register amendments notices can be accessed [here for Mexico] and [here for Canada]. Both notices reduced the duty on potash from 25% to 10%.

Energy resources from Canada will have a lower 10% tariff. The orders ended duty-free de minimis treatment under 19 U.S.C. 1321 for products from China subject to these additional tariffs. However, President Trump signed a subsequent Executive Order pausing the suspension of de minimis treatment. President Trump also signed two executive orders preserving de minimis treatment for Canada and Mexico until “adequate systems are in place” collect tariff revenue from these shipments.

Tariffs will be on top of any other in place (301, 232, ADD, etc.)

Customs and Border Protection (CBP) issued guidance on the additional tariffs on imports from China, Canada, and Mexico. CBP also issued guidance on the processing of de minimis shipments, available here. 

The Administration said the tariffs are aimed at curbing the flow of undocumented immigrants and drugs into the U.S. The White House Fact Sheet said the tariffs will hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping fentanyl and other drugs from flowing across the border. The tariffs will remain in effect “until the crisis is alleviated.”

Steel and Aluminum Tariffs

On February 11, 2025, President Trump issued two Proclamations imposing enhanced import duties on steel and aluminum products under Section 232 of the Trade Expansion Act of 1962. The orders eliminate certain exemptions from the duties, expand their scope to cover additional products, and raise the duties on covered aluminum goods from 10% to 25%.

On February 18, 2025, two Federal Register Notices were published that included lists of “derivative” products subject to the 25% tariffs on steel and aluminum under Section 232. The Federal Register Notices, which include the specific HTS subheadings for the derivative products in Annex 1 are available here (steel) and here (aluminum). The Federal Register Notices implementing the enhanced import duties are available here (steel) and here (aluminum).

On March 3, 2025, the Department of Commerce released an unpublished Federal Register notice on the Implementation of Duties on Steel pursuant to Proclamation 10896, adjusting imports of steel into the United States, and an unpublished Federal Register notice on the Implementation of Duties on Aluminum pursuant to Proclamation 10895, adjusting imports of aluminum into the United States. Both are scheduled for official publication on March 6, 2025. The notices are available here (steel) and here (aluminum). In accordance with the notices, the additional 25% tariffs on the steel derivative products that fall under Chapter 73 that are listed in Annex 1 to the February 18 Federal Register Notice and on the aluminum derivative products that fall under Chapter 76 will of Annex 1 to the February 19 Federal Register Notice will begin March 12. Derivatives listed in these annexes that fall outside Chapters 73 and 76 will begin upon public notification by the Secretary of Commerce that adequate systems are in place to collect the additional tariffs.

Also as of March 12, 2025:

• Additional Section 232 tariffs of 25% will apply to covered aluminum and steel products from all countries. This means that countries that previously had certain exemptions from the 232 tariffs such as Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, and the United Kingdom will also be subject to the 25% tariffs.
• Imports of derivative aluminum articles that contain “any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia,” are subject to a duty of 200%.
• Newly added HTSUS codes in Chapters 73 and 76 will be subject to tariffs under subheadings 9903.85.07 and 9903.81.90.
  • HTSUS Changes:
    • 19 new subheadings for aluminum derivatives under Chapter 76.
    • 157 new subheadings for steel derivatives under Chapter 73.

New subheadings will be used to differentiate between newly covered and previously covered products:

• 9903.85.02 – will be used for increased and expanded tariffs on aluminum, which are now set at 25% and will now also apply to Argentina, Australia, Canada, Mexico, the EU and the U.K., all of which previously had deals to avoid the tariff
• 9903.81.87 – will be used for Section 232 tariffs on iron and steel, including for goods that were previously subject to Section 232 steel tariffs (except for those on derivatives), as well as newly subject goods from Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the U.K., Ukraine and the EU that are no longer exempt or eligible for quota.
• 9903.85.04 – will be used for the previously existing list of aluminum derivatives
• 9903.81.89 – will be used for previously tariffed steel derivatives.
• 9903.81.88 & 9903.81.93 – will apply the tariffs on steel and steel derivatives admitted to a foreign-trade zone prior to March 12 under privileged foreign status.
• 9903.81.92 & 9903.85.09 – Newly tariffed derivatives exempt from tariffs because the steel was melted and poured in the U.S. or the aluminum was smelted and cast in the U.S.

USTR Requests Comments on Unfair Trade Practices and Non-Reciprocal Trade Arrangements

On February 25, 2025, the United States Trade Representative (USTR) published a Federal Register Notice seeking comments from the public to assist USTR in reviewing and identifying any unfair trade practices by other countries, and in initiating all necessary actions to investigate the harm to the United States from any non-reciprocal trade arrangements.

USTR was directed to initiate the unfair trade practices and non-reciprocal trade arrangements proceeding under the America First Trade Policy Presidential Memorandum and the Presidential Memorandum on Reciprocal Trade and Tariffs.

The Federal Register Notice invites any interested party to provide information relating to any unfair trade practice by a foreign country or economy or with respect to a non-reciprocal trade arrangement.

The notice stated that unfair trade practices may include a wide range of practices, such as policies, measures, or barriers that undermine or harm U.S. production or exports. Unfair practices may also include failure by a country to take action to address a non-market policy or practice in a way which harms the United States.

USTR is particularly interested in information related to the largest trading economies, such as G20 countries, as well as economies that have the largest trade deficits with the United States. Comments are due March 11, 2025.

232 Investigations

On February 25 2025, President Trump signed an executive order directing the Secretary of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 to determine whether imports of copper threaten to impair U.S. national security.

On March 1, 2025, President Trump signed an executive order directing the Secretary of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 to determine whether imports of timber, lumber and their derivative products threaten to impair U.S. national security.

Within 270 days of the issuance of the orders, the Secretary must submit the findings of the investigations along with recommendations on actions to mitigate such threats. Recommendations may include tariffs, export controls, or incentives to increase domestic production.

What Importers Should Do

While these tariff increases and changing trade policies will undoubtedly have a significant impact on any business involved in importing goods into the U.S., importers are not without options.

Now is the time importers should audit their operations and compliance program and ensure they are operating in the most efficient way possible. There are also several ways to legally minimize tariffs including:

• Duty Drawback
• Tariff Engineering
• Country of Origin Change
• First Sale
• Duty Deferral
• Negotiate DDP Incoterm

Importers exploring options to minimize tariff liability should always work with an expert to ensure they continue to meet all U.S. Customs regulations. Duty evasion is a serious crime and can result in serious monetary penalties or even prison time in the case of fraud.

At Diaz Trade Law, we have a strong track record in tariff minimization and customs compliance.  To learn more about how we can help, contact us at info@diaztradelaw.com or call us at 305-456-3830.

Learn more:

• Webinar: Navigating Tariff Challenges, Mitigation Tools and Tactics
• ICYMI: Trump Administration Imposes 25% Steel and Aluminum Tariff
• Bloomberg Law: Tariff Classification Basics
• Webinar: Navigating CBP Regulations: Essential Practices for Import Success
• Webinar: Building and Maintaining an Effective Import Compliance Plan
• Webinar: Introduction to Importing

On February 18, 2025, two Federal Register Notices were published that included lists of “derivative” products subject to the 25% tariffs on steel and aluminum under Section 232. The Federal Register Notices, which include the specific HTS subheadings for the derivative products in Annex 1 are available here (steel) and here (aluminum).

As of March 12, 2025, additional Section 232 tariffs of 25% will apply to covered aluminum and steel products from all countries. This means that countries that previously had certain exemptions from the 232 tariffs such as Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, and the United Kingdom will also be subject to the 25% tariffs. Imports of derivative aluminum articles that contain “any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia,” are subject to a duty of 200%.

In addition, the additional 25% tariffs will apply to the lists of aluminum and steel derivatives identified in the annexes to the Federal Register Notices once the U.S. Department of Commerce certifies that “adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue for covered articles.”

Foreign trade zones and Drawback

Derivative steel and aluminum articles admitted into a U.S. Foreign Trade Zone (FTZ) after March 12, 2025, must be admitted as “privileged foreign status” (unless eligible for “domestic status”) and will be subject to the additional duties upon entry for consumption into the United States. Importers cannot reclaim these duties under the duty drawback program.

Exclusions

As of February 19, 2025, no new exclusions or exemptions have been announced. If an importer has an existing product-specific, importer-specific product exclusion for steel or aluminum products, the exclusion will remain effective until the expiration date or until their excluded volume is exhausted, whichever occurs first. The current general approved exclusions will lapse on March 12, 2025, and will not be renewed.

The proclamation establishes an exclusion for derivative steel products processed in another country if they originate from steel articles that were melted and poured in the U.S. and for derivative aluminum products processed in another country if they originate from aluminum articles that were smelted and cast in the U.S.

Authority & Rationale

Section 232 of the Trade Expansion Act of 1962 allows the president to impose import restrictions based on an investigation and affirmative determination by the U.S. Department of Commerce that certain imports threaten to impair U.S. national security. Commerce conducted investigations and released a report in February 2018 finding that excessive steel and aluminum imports had weakened the domestic industries, reducing their ability to meet national defense and critical infrastructure needs.

In response to this report, the first Trump Administration imposed a 10% tariff on aluminum and 25% tariff on steel imports in March 2018. The proclamation states that despite this action, aluminum imports into the United States have continued at unacceptable levels. As a result, domestic producers have been forced to idle additional production and shut down facilities. The proclamation states that this action is necessary to allow U.S. aluminum producers to restart production and to incentivize new capacity.

Next Steps

The proclamation directs several departments and agencies to take action to implement the policy:

• Within 90 days, Commerce must establish a process allowing U.S. steel and aluminum producers to request the inclusion of additional derivative products under these tariffs.
• Within 10 days, the United States International Trade Commission shall revise the HTSUS to reflect the new policy.
• The Secretary shall take all actions, including publication in the Federal Register, necessary to terminate the product exclusion process.
• CBP is directed to publish regulations or guidance implementing the requirements as soon as practicable.
• CBP is directed to promptly notify Commerce if it finds evidence of any efforts to evade payment of the additional duties.
• The Secretary may issue regulations and guidance to address operational necessity.

In addition, going forward, importers must provide steel and aluminum content information for derivative steel articles to U.S. Customs. CBP will prioritize the review of product classification for imported steel and aluminum articles. If misclassification is detected, maximum penalties will be imposed, with no consideration for mitigating factors.

Diaz Trade Law will continue to monitor for developments and will provide additional information as it becomes available.

Learn more:

• New Tariffs on Mexico, Canada, and China: Key Updates for Importers
• Bloomberg Law: Tariff Classification Basics
• Webinar: Navigating CBP Regulations: Essential Practices for Import Success
• Webinar: Building and Maintaining an Effective Import Compliance Plan
• Webinar: Introduction to Importing

• 25% tariff on imports from Canada will take effect at least 30 days from Feb. 4, 2025.
• 25% tariff on imports from Mexico are now scheduled to take effect on March 4, 2025. 
• 10% tariff on imports from China will take effect on February 4, 2025. 

In a Truth Social post on February 27, President Trump confirmed that the tariffs on Canadian and Mexican goods will go into effect on March 4. He also announced that China will face an additional 10% tariff starting March 4.

Energy resources from Canada will have a lower 10% tariff. The orders ended duty-free de minimis treatment under 19 U.S.C. 1321 for products from China subject to these additional tariffs. However, President Trump signed a subsequent executive order pausing the suspension of de minimis treatment.

Tariffs will be on top of any other in place (301, 232, ADD, etc.) The Federal Register Notice for Canada can be found here and the Federal Register Notice for China can be found here. Customs and Border Protection (CBP) issued guidance on the additional tariffs on imports from China and Canada which can be found here and  here. CBP also issued guidance on the processing of de minimis shipments, available here.

Policy Rationale & International Response 

The Administration said the tariffs are aimed at curbing the flow of undocumented immigrants and drugs into the U.S. The White House Fact Sheet said the tariffs will hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping fentanyl and other drugs from flowing across the border. The tariffs will remain in effect “until the crisis is alleviated.” 

Canada and China immediately vowed to impose retaliatory tariffs and countermeasures. Canadian Prime Minister, Justin Trudeau, announced tariffs starting at 25 percent on approximately $30 billion worth of U.S. goods, with $85 billion more to follow within three weeks. China announced it would implement a 10% tariff on crude oil, agricultural machinery and large-engine cars, as well as a 15% tariff on coal and liquefied natural gas. China’s commerce ministry also said they would file a case against the U.S. at the World Trade Organization.

Following a meeting between President Trump and Mexico President Claudia Sheinbaum, tariffs on Mexico will be paused for one month. Sheinbaum vowed to immediately reinforce Mexico’s northern border with 10,000 National Guard soldiers to curb drug trafficking from Mexico to the U.S. Following a meeting between President Trump and Canada Prime Minister Justin Trudeau, tariffs on Canada will be paused for one month. Trudeau announced Canada will implement their $1.3 billion border plan which includes reinforcing the border and increased resources to stop the flow of fentanyl. CBP subsequently issued issued guidance pausing the application of additional duties on imports from Canada.

What Importers Should Do: 

While these increases will undoubtedly have a significant impact on any business involved in importing goods into the U.S. from these countries, importers are not without options.

Now is the time importers should audit their operations and compliance program and ensure they are operating in the most efficient way possible. There are also several ways to legally minimize tariffs. 

Duty Drawback 

If you import products into the U.S. only to export them to another country, you may be entitled to compensation for the duties paid upon importation to the U.S. Duty Drawback provides for the refund of up to 99% for certain duties, internal revenue taxes, and fees collected by CBP upon importation. The drawback may be granted only after the subjected item(s) have been either exported or destroyed (under CBP supervision). Note: importers may not utilize duty drawbacks to mitigate the new tariffs discussed above. 

Tariff Engineering 

Tariff engineering involves altering the condition of a good before it is imported so that it is legally classified under a favorable Harmonized Tariff Schedule of the U.S. (HTSUS) classification to benefit from a lower duty rate. Since CBP can only levy tariffs based on the condition of goods at the time of importation, tariff engineering gives importers the opportunity to redefine their imported products and pay lower duties. 

Country of Origin Change 

While potentially costly to initially relocate, changing the country of origin will allow you to import the exact same item(s) without paying the additional duties. If considering this option, one must be cognizant of the list of nations that have a free-trade agreement with the United States. Even though another nation may not be subjected to substantial duties, shifting your supply chain to a nation that has a formal, free and fair-trade agreement with the U.S. ensures accountability and reliability. 

Per the “America First Trade Policy” memorandum issued by the White House on January 20, 2025, all free trade agreements are under review by the United States Trade Representative, with a report expected by April 1, 2025. 

First Sale 

First Sale is a system that decreases the dutiable value of imported goods by authorizing importers to use the price paid in the first sale.  It allows an earlier sale to be used in declaring customs value as long as that sale can be documented as a sale for exportation to the United States and the importer meets all other Customs requirements. 

Consequently, that equivalent value is assigned according to the transaction between the manufacturer and the middleman, not between the middleman and the new buyer. 

Duty Deferral 

If an importer cannot lower the tariff burden, they can consider deferring the cost of duties through Foreign Trade Zones and/or Bonded Warehouses. Note: importers may not utilize foreign trade zones to defer the recently imposed tariffs discussed above.  

Foreign Trade Zones 

Foreign Trade Zones (FTZs), although technically within the geographic limits of the U.S., are secured areas considered outside U.S. Customs territory. Foreign and domestic merchandise may be admitted into an FTZ for operations such as storage, exhibition, assembly, manufacture, redistribution, processing, and more. FTZs allow users to defer, reduce, or eliminate Customs duties. Prior to any manipulation or manufacture of merchandise, which would change its tariff classification, importers may also apply for merchandise in the zone to be given privileged foreign status. Merchandise with privileged foreign status is classified and appraised and duties and taxes are determined as of the date the application is filed. 

Bonded Warehouse 

Unlike FTZs, bonded warehouses are within U.S. customs territory. A customs-bonded warehouse is a secured area in which imported merchandise may be stored without payment of duty for up to 5 years. 

Importers may repackage, sort, or label imports at these locations under the supervision of U.S. customs officials. Manipulation of merchandise is generally prohibited unless approved by U.S. Customs. 

Negotiate DDP Incoterm 

International commercial terms (“Incoterms”) are published by the International Chamber of Commerce (ICC) as a commitment to facilitate international trade and promote open markets. The ICC developed Incoterms to provide a common language for traders and to establish a global system of rules to govern trade. Incoterms are not law, and instead are designed to prevent confusion between global traders by clarifying contract obligations of buyers and sellers. 

Negotiating Incoterms with partners is another way to minimize import costs. Importers should review their contracts and negotiate a “delivery duty paid” (DDP) incoterm. DDP terms place the responsibility (including export and import clearance, transport costs, import duties, and packaging costs) for the delivery of goods on the seller. The seller acts as the importer of record and has the ability to deduct costs like freight, duty, and insurance from the dutiable value. Another advantage of the DDP term is that, if properly structured, it can reduce the total impact of the tariffs.  

Proceed with Caution When Attempting to Minimize Tariffs 

Importers exploring options to minimize tariff liability should always work with an expert to ensure they continue to meet all U.S. Customs regulations. Duty evasion is a serious crime and can result in serious monetary penalties or even prison time in the case of fraud. 

At Diaz Trade Law, we have a strong track record in tariff minimization and customs compliance.  To learn more about how we can help, contact us at info@diaztradelaw.com or call us at 305-456-3830. 

Learn more: 

• Bloomberg Law: Tariff Classification Basics 
• Webinar: Navigating CBP Regulations: Essential Practices for Import Success 
• Webinar: Building and Maintaining an Effective Import Compliance Plan 
• Webinar: Introduction to Importing 

United States Trade Representative 

• On July 14, 2022, the Office of the United States Trade Representative, announced the launch of the U.S. – Kenya Statistic Trade and Investment Partnership. USTR announced that the U.S. and Kenya will develop an ambitious roadmap for enhanced cooperation with the goal of negotiating high-standard commitments in order to achieve economically meaningful outcomes in: Agriculture, Anti-Corruption, Digital Trade, Environment and Climate Change Action, Good Regulatory Practices, Micro, Small and Medium Enterprises, Promoting Workers’ Rights and Protections, Supporting Participation of Women, Youth, and Others in Trade, Standard Collaborations, and Trade Facilitation and Customs Procedures.

• On July 20, 2022, pursuant to authority delegated by the President on July 8, 2022, the U.S. Trade Representative reached an agreement with Canada limiting the export from Canada and the import into the United States of certain crystalline silicon photovoltaic cells (whether or not partially or fully assembled into other products) (CSPV products).

U.S. Customs and Border Protection 

• US. Customs and Border Protection, launched their Green Trade Strategy, highlighting the agency’s efforts to combat climate change in the context of trade and provides a framework to incentivize green trade, strengthen CBP’s environmental enforcement posture, accelerate green innovation, and improve climate resilience and resource efficiency. With the Green Trade Strategy, CBP is looking to set an example for customs authorities around the world to develop higher, greener standards for global trade while creating an opportunity for government, industry, and the public to unify efforts in the creation of a more sustainable future.
• On July 20, 2022, CBP announced their modification of the National Customs Automation Program (NCAP) test concerning Automated Commercial Environment (ACE) Portal Accounts to establish the ACE Vessel Agency Portal Account, and to decommission the Cartman and Lighterman Portal Accounts due to a lack of usage by the public.

Federal Maritime Commission 

• On July 14, 2022 the Federal Maritime Commission (FMC) released an advisory enacting provisions of the Ocean Shipping Reform Act of 2022 (OSRA) by providing a simplified process for container carrier customers who want the FCC to investigate their complaints. The steps outlined include: identifying the carrier and the alleged violation, submitting documentation, confirming that the disputed charge was incurred after the June 16 enactment of OSRA, and submitting all the materials in one email, if possible. When the FCC receives sufficient information, it “will promptly initiate an investigation, which could ultimately result in a civil penalty and order for a refund of charges paid,” the advisory states.

Federal Trade Commission

• The Federal Trade Commission (FTC) has finalized an order against Resident Home LLC and owner Ran Reske for allegedly making false, misleading, or unsupported advertising claims that their imported DreamCloud mattresses were made from 100% USA-made materials. Resident Home LLC and Reske will pay $753,000. Under the terms of the final order, in addition to paying $753,000, Resident Home LLC and Reske are prohibited from making several claims that deceive consumers and harm law-abiding businesses whose sales decreased because of this behavior.

U.S. Food and Drug Administration

• The U.S. Food and Drug Administration (FDA) guidance updates the March 2018 guidance by removing the temporary policy of permitting the use of the entity role code “UNK” in lieu of a DUNs number.
  • Beginning July 24, 2022, the use of the entity identification code “UNK” will no longer be an option. The FSVP importer will be required to ensure that their valid, 9-digit DUNS number is provided in the Entity Number field. CBP will reject an entry line of a food subject to the FSVP regulation when the importer’s DUNS number is not provided in the Entity Number field.

U.S. Department of Commerce

• On July 20, 2022, DOC  announced it will amend the notice of initiation of administrative reviews of antidumping duty (AD) and countervailing duty (CVD) orders with January 2021 anniversary dates to include a company that was inadvertently omitted from the AD administrative review of softwood lumber from Canada.
• On July 20, 2022, DOC has received a covered merchandise referral from U.S. Customs and Border Protection (CBP) in connection with a CBP investigation concerning alleged evasion of the antidumping/countervailing duty (AD/CVD) orders on certain magnesia carbon bricks (bricks) from the People’s Republic of China (China).
• On July 20, 2022, DOC announced it will conduct an administrative review of the antidumping duty order on certain steel nails (steel nails) from the Sultanate of Oman (Oman). This review covers 15 exporters and producers from Oman.

U.S. Department of the Treasury’s Office of Foreign Assets Control

• On July 15, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a settlement with American Express National Bank (Amex), a subsidiary of American Express Company. Amex agreed to remit $430,500 to settle its potential civil liability for 214 apparent violations of OFAC’s Kingpin sanctions.

U.S. International Trade Commission 

• On July 20, 2022, notice is hereby given the U.S. International Trade Commission (USITC) has determined to affirm the remand initial determination (“RID”) issued on December 29, 2021, finding that Complainants failed to establish the economic prong of the domestic industry requirement in the above-referenced section 337 investigation.
• On July 20, 2022, USITC announced Section 206 of the ATPA (19 U.S.C. 3204) requires the Commission to report biennially to the Congress and the President by September 30 of each reporting year on the economic impact of the Act on U.S. industries and U.S. consumers, and on the effectiveness of the Act in promoting drug-related crop eradication and crop substitution efforts by beneficiary countries.

U.S. Department of State

• On July 20, 2022, the U.S. Department of State (DOS), Directorate of Defense Trade Controls is publishing two open general licenses, permitting certain reexports and retransfers. This pilot program involves open general licenses that may be used by certain persons in Australia, Canada, and the United Kingdom to retransfer certain defense articles within each of the three countries and to reexport certain defense articles between and among the three countries.

If you have questions about these updates, contact our Diaz Trade Law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

U.S. Treasury Department – Office of Foreign Assets Control

• On July 6, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned an international network of individuals and entities that has used a web of Gulf-based front companies to facilitate the delivery and sale of hundreds of millions of dollars’ worth of Iranian petroleum and petrochemical products from Iranian companies to East Asia. As a result, all property and interests in property of these targets that are in the U.S. must be blocked and reported to OFAC. 
  
• On July 1, 2022, OFAC  published an update to the identifying information of one person, LOPEZ DELGADO, of Nicaragua, currently included on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List). All U.S. property of this person remains blocked, and Americans are generally prohibited from engaging in transactions with him. 
• On July 1, 2022, OFAC adopted a final rule amending the Global Terrorism Sanctions Regulations to implement a September 9, 2019 Executive Order which strengthened U.S. counter-terrorism efforts, including include against acts of terrorism that threaten the Middle East peace process. This rule is effective July 1, 2022.  
• On July 1, 2022, OFAC sent out a reminder to file the 2022 Report of Blocked Property, requiring holders of blocked property to provide OFAC with a comprehensive list of all blocked property held as of June 30 of the current year by September 30, 2022. 
• On June 30, 2022, OFAC announced it has blocked property belonging to Heritage Trust, a Delaware-based trust owned by Russian oligarch Suleiman Abusaidovich Kerimov. Heritage Trust holds assets valued at over $1 billion. 
• The U.S. Department of State and the U.S. Department of Commerce have taken action prohibiting the importation of Russian gold. 

U.S. Trade Representative

• On June 30, 2022, the U.S. Trade Representative, Ambassador Katherine Tai, released the first Report on the Operation of the United States-Canada Mexico Agreement (USMCA) with Respect to Trade in Automotive Goods. 
• On July 6, 2022, the USTR issued a notice seeking public comments to assist in the development of a forced labor trade strategy. The deadline for submitting comments is August 5, 2022. USTR requests that comments be submitted electronically via the Federal eRulemaking Portal at https://www.regulations.gov, using Docket Number USTR–2022–0006.

U.S. Department of Commerce

• On July 1, 2022, the Department of Commerce and the International Trade Commission automatically initiated and conducted reviews of orders pertaining to pencil and rubber products. 
• On July 1, 2022, the DOC determined that Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. has made sales of multilayered wood flooring from China at prices below normal value during the period of review (POR) December 1, 2019, through November 30, 2020. 
• On July 1, 2022, the DOC published a summary of duty orders, findings, and suspended investigations, and provided an opportunity to request administrative review for a range of investigations. 
• On July 1, 2022,  the DOC automatically initiated the five-year reviews (Sunset Reviews) of the antidumping and countervailing duty (AD/CVD) orders and suspended investigations for a wide range of cases. 
• On June 28, 2022, the Bureau of Industry and Security added 36 entities to the Entity List from China, Lithuania, Pakistan, Russia, Singapore, the United Arab Emirates, the United Kingdom, Uzbekistan, and Vietnam.

U.S. International Trade Commission

• On July 1, 2022, the U.S. International Trade Commission (USITC) and the Department of Commerce (DOC) gave notice, setting forth the schedule and proposed topics for a meeting of the Environmental Technologies Trade Advisory Committee (ETTAC). Written comments concerning ETTAC affairs are welcome any time before or after the meeting. 
• On July 1, 2022, the USITC gave notice that it has instituted a review to determine whether revocation of the antidumping duty order on dioctyl terephthalate from South Korea would be likely to lead to continuation or recurrence of material injury. 
• On July 1, 2022, the USITC gave notice that it has instituted a review to determine whether revocation of the antidumping duty order on furfuryl alcohol from China would be likely to lead to continuation or recurrence of material injury. 
• On July 1, 2022, the USITC gave notice that it has instituted a review to determine whether revocation of the antidumping duty order on light-walled rectangular pipe and tube from Taiwan would be likely to lead to continuation or recurrence of material injury. 
• On July 1, 2022, the USITC instituted the subject five-year reviews on April 1, 2022 (87 FR 19131) to determine whether revocation of the antidumping duty orders on sulfanilic acid from China and India, and the countervailing duty order on imports of sulfanilic acid from India would be likely to lead to continuation or recurrence of material injury. 

U.S. Customs and Border Protection

• On July 2, 2022, U.S. Customs and Border Patrol (CBP) delivered a notice advising the public that the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties will increase from the previous quarter. Effective on July 1, 2022, the interest rates for overpayments will be 4% for corporations and 5% for non-corporations. The interest rates for underpayments will be 5% for both corporations and non-corporations.
• On July 1, 2022, U.S. Customs and Border Protection, (CBP), announced that it will refer to the Office of Management and Budget (OMB) for review and approval an application for withdrawal of bonded stores for fishing vessels.
• On June 30, 2022, CBP announced the launch of its Green Trade Strategy, a framework to incentivize green trade, strengthen CBP’s environmental enforcement posture, accelerate green innovation, and improve climate resilience and resource efficiency. 

U.S. Department of Transportation

• On June 30, 2022, the National Highway Traffic Safety Administration (NHTSA) issued a final rule to amend the Federal Motor Vehicle Safety Standard (FMVSS) (Standard) No. 213, “child restraint systems”, which furthers efforts to protect children seated in child restraint systems during side impacts. 

U.S. Trade Policy

• President Biden is anticipated to lift tariffs on $10 billion worth of Chinese goods under a plan being discussed within the administration, while opening a new exclusion process for firms to win additional relief. The plan is expected to involve three parts. First, a narrow set of tariffs would be lifted, likely duties on consumer goods like bicycles. Second, the administration is expected to announce that the U.S. Trade Representative will open a new exclusion process for companies to win exemptions from the tariffs on China. Third, the administration will initiate a new tariff investigation under Section 301 of the 1974 Trade Act that will target sectors of the Chinese economy that are heavily subsidized by the Chinese Communist Party. 
  • President Biden is anticipated to announce a rollback of some US tariffs on Chinese consumer goods — as well as a new probe into industrial subsidies that could lead to more duties in strategic areas like technology. It would mark Biden’s first major policy step on trade ties between the world’s two biggest economic powers. A White House spokeswoman said no decision on the tariffs has been made but the administration wants to ensure they are aligned with “economic and strategic” priorities and don’t unnecessarily raise costs for Americans. 
• On June 28, 2022,  President Biden met with G7 leaders to strengthen cooperation on economic issues, cyberspace and quantum, and other 21st century challenges, including those posed by China to U.S. workers, companies, and national security. The G7, representing over 50% of the world economy, is demonstrating that it is among the most potent institutions in the world today, with like-minded democracies solving problems.   
• On June 27, 2022, the White House released a proclamation announcing increased duties on all products produced by Russia and Belarus, including oil, fuel, and certain food products. 

If you have questions about these updates, contact our Customs and International trade law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

USITC

• On June 24, 2022, the U.S. International Trade Commission gave notice that it has received a complaint entitled Certain Mobile Electronic Devices, DN 3625; the Commission is soliciting comments on any public interest issues raised by the complaint or complainant’s filing pursuant to the Commission’s Rules of Practice and Procedure.
• On June 28, 2022, the USITC gave notice of the scheduling of the final phase of antidumping investigation No. 731-TA-1574 pursuant to the Tariff Act of 1930 to determine whether an industry in the United States is materially injured or threatened with material injury, or the establishment of an industry in the United States is materially retarded, by reason of imports of superabsorbent polymers from South Korea, provided for in subheadings 3906.90.50 and 3906.10.00 of the Harmonized Tariff Schedule of the United States, preliminarily determined by the Department of Commerce to be sold at less-than-fair-value.
• On June 28, 2022, the USITC determined to review in part a final initial determination (“FID”) of the presiding Administrative Law Judge (“ALJ”). On review, the Commission affirms the FID’s finding of no violation of section 337 of the Tariff Act of 1930, as amended, in this investigation of certain smart thermostats, HVAC systems and components thereof. The investigation is terminated.
• On June 28, 2022, the USITC gave notice of a complaint it received that, as supplemented, alleges violations of section 337 based upon the importation into the United States, the sale for importation, and the sale within the United States after importation of certain barcode scanners, scan engines, mobile computers with barcode scanning functionalities, products containing the same, and components thereof by reason of the infringement of certain claims of U.S.
• On June 29, 2022, the USITC gave notice of the scheduling of expedited reviews pursuant to the Tariff Act of 1930 to determine whether revocation of the antidumping duty order on large residential washers from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
• On June 29, 2022, the USITC gave notice of the scheduling of expedited reviews pursuant to the Tariff Act of 1930 to determine whether revocation of the antidumping duty orders on certain polyester staple fiber from South Korea and Taiwan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

DOC

• On June 24, 2022, the U.S. Department of Commerce determines that urea ammonium nitrate solutions (UAN) from the Russian Federation (Russia) are being, or are likely to be, sold in the United States at less than fair value (LTFV).
• On June 24, 2022, the DOC received scope ruling applications, requesting that scope inquiries be conducted to determine whether identified products are covered by the scope of antidumping duty and/or countervailing duty orders that Commerce issued pursuant to those inquiries.
• On June 24, 2022, the DOC determined that countervailable subsidies are being provided to producers and exporters of urea ammonium nitrate solutions from the Republic of Trinidad and Tobago. The period of investigation was January 1, 2020, through December 31, 2020.
• On June 24, 2022, the DOC determined that countervailable subsidies are being provided to producers and exporters of urea ammonium nitrate solutions (UAN) from the Russian Federation (Russia).
• On June 24, 2022, the DOC determined that acrylonitrile-butadiene rubber (AB rubber) from France is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation was April 1, 2020, through March 31, 2021.
• On June 24, 2022, the DOC determined that acrylonitrile-butadiene rubber (AB rubber) from Mexico is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation was April 1, 2020, through March 31, 2021.
• On June 24, 2022, the DOC determined that acrylonitrile-butadiene rubber (AB rubber) from the Republic of Korea (Korea) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation was April 1, 2020, through March 31, 2021.
• On June 24, 2022, the DOC determined that urea ammonium nitrate solutions (UAN) from the Republic of Trinidad and Tobago (Trinidad and Tobago) are being, or are likely to be, sold in the United States at less than fair value (LTFV).
• On June 28, 2022, the DOC has determined that the manufacturers/exporters of crystalline silicon photovoltaic cells, whether or not assembled into modules, from China, sold subject merchandise in the United States at less than normal value during the period of review from December 1, 2019, through November 30, 2020.
• On June 28, 2022, the DOC conducted an administrative review of the antidumping duty order on polyethylene terephthalate film, sheet, and strip from Taiwan. The period of review was from July 1, 2020, through June 30, 2021. This review covers the following producers and exporters from Taiwan: Nan Ya Plastics Corporation (Nan Ya); and Shinkong Materials Technology Corporation (SMTC)/Shinkong Synthetic Fibers Corporation (SSFC). Commerce preliminarily determines that sales of subject merchandise have not been made below normal value (NV) by Nan Ya during the POR. In addition, we preliminarily find that SMTC/SSFC had no shipments during the POR.
• On June 28, 2022, the DOC determined that countervailable subsidies are being provided to producers and exporters of sodium nitrite from the Russian Federation during the period of investigation January 1, 2021, through December 31, 2021.
• On June 28, 2022, the DOC preliminarily determined that sodium nitrite from the Russian Federation is being, or is likely to be, sold in the United States at less than fair value. The period of investigation was January 1, 2021, through December 31, 2021.
• On June 14, 2022, the United States – Mexico – Canada Agreement Binational Panel issued its Decision in the matter of Certain Gypsum Board, Sheet, or Panel originating in or exported from the United States of America. The Binational Panel affirmed the Canadian Intentional Trade Tribunal’s Final Determination.

OFAC

• On June 28, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated 70 entities on the SDN List, many of which are critical to the Russian Federation’s defense industrial base, including State Corporation Rostec, the cornerstone of Russia’s defense, industrial, technology, and manufacturing sectors, as well as 29 Russian individuals. Today’s actions, taken pursuant to Executive Orders (E.O.s) 14024 and 14065, strike at the heart of Russia’s ability to develop and deploy weapons and technology used for Vladimir Putin’s brutal war of aggression against Ukraine.
• On June 29, 2022, The U.S Department of The Treasury’s Russian Elites, Proxies, and Oligarchs (REPO) Task Force leveraged extensive multilateral coordination to block or freeze more than $30 billion worth of sanctioned Russians’ assets, freeze or seize sanctioned persons’ high-value goods, and heavily restrict sanctioned Russians’ access to the international financial system.  REPO members have achieved these successes through close and extensive national and international coordination and collaboration.

CPSC

• On June 10, 2022, the U.S. Consumer Product Safety Commission (Commission or CPSC), in consultation with U.S. Customs and Border Protection (CBP), announced their joint intent to conduct a second test (a Beta Pilot) to assess the electronic filing of data from a certificate of compliance (certificate) for regulated consumer products under CPSC’s jurisdiction. Applications will be open until August 9, 2022. 

BIS

• On June 29, 2022, the Bureau of Industry and Security, U.S. Department of Commerce, through its Office of Export Enforcement, requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of Russian airline Nordwind Airlines. OEE’s request and related information indicates that Nordwind is headquartered in Moscow, Russia.
• On June 29, 2022, the BIS, U.S. Department of Commerce, through its Office of Export Enforcement, requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of Russian airline Pobeda Airlines. OEE’s request and related information indicates that Pobeda is headquartered in Moscow, Russia, and Aeroflot Russian Airlines JSC, a/k/a PJSC Aeroflot is Pobeda’s majority shareholder. The Russian Federal Government is the majority owner of Aeroflot, through its Federal Agency for State Property Management.

DOS

• On June 28, 2022, the U.S. Department of State submitted an information collection request to the Office of Management and Budget for approval regarding the statement of political contributions, fees, and commissions relating to sales of defense articles and defense services.

FCC

• On June 30, 2022, a member of the Federal Communications Commission requested that Apple and Google remove TikTok, a popular China-based app, from their app stores out of concern that the app could send sensitive U.S. user data back to Beijing. The member, Brendan Carr, stated that “TikTok’s pattern of conduct and misrepresentations regarding the unfettered access that persons have in Beijing…” is concerning.

If you have questions about these updates, contact our Customs and International trade law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

All merchandise of foreign origin imported into the United States (U.S.) must generally be marked with its country of origin, and it is subject to a country of origin (COO) determination by CBP. The country of origin of imported goods may be used as a factor to determine eligibility for preferential trade treatment under a free trade agreement.

The country of origin of imported goods is also used to determine non-preferential trade treatment, such as admissibility, marking, and trade relief (310 duties, antidumping and countervailing duties (AD/CVD). CBP uses the “substantial transformation” standard to determine the COO of goods for non-preferential purposes. For a substantial transformation to occur, “a new and different article must emerge, `having a distinctive name, character or use.’” Anheuser-Busch Brewing Ass’n v. United States, 207 U.S. 556, 562 (1908) (quoting Hartranft v. Wiegmann, 121 U.S. 609, 615 (1887)).

CBP applies two different methods to determine if goods have been substantially transformed – even though both are intended to produce the same origin determinations:

1. Case-by-case decision based on court decision and CBP rulings (often criticized because of the varied case-specific interpretations of the basic rule that has resulted in a lack of predictability and increased uncertainty both within CBP and in the trade community). Using this method, the effect of a particular type of processing could have on impact on  origin determination.
2. Rules of Origin in 19 CFR 102 – these rules are included in the Harmonized Tariff Schedule of the U.S. (HTSUS) under General Notes and are often referred to as the “change in tariff classification” or “tariff shift” method.

Prior to the USMCA, under the NAFTA, COO marking determinations were made using the NAFTA marking rules codified in 19 CFR 102, to determine if substantial transformation existed when a good imported from Canada or Mexico (was not entirely of Canadian or Mexican origin). The 102 rules helped determine whether or not goods were substantially transformed through processes that resulted in changes in the tariff classification (i.e., tariff shifts) in Canada or Mexico. To determine the country of origin of goods imported from Canada or Mexico for other non-preferential purposes (i.e., purposes other than marking), CBP employed case-by-case adjudication to determine whether such goods were substantially transformed in those NAFTA countries. These different non-preferential country of origin-determination methods required some importers to determine and declare two different countries of origin for the same imported good!

The Current Problem with COO Determinations Under USMCA

Importers from Canada and Mexico are subject to two different non-preferential origin determinations for imported merchandise:

• One for marking; and,
• Another for determining origin for other purposes (e.g., 310 duties, AD/CVD).

Consequently, these importers must also potentially comply with requirements to declare two different countries of origin for the same imported good (e.g., Canada and China, forcing the import to also tender the additional 301 duties, but, also take advantage of the FTA not having to pay regular duties). This is not only a burden, but, also quite confusing, creating inconsistency, and vastly reduces transparency.

CBP’s Proposed Solution

CBP is proposing to amend the scope provision in 19 CFR 102 by adding new language to apply the substantial transformation standard consistently across country-of-origin determinations CBP makes for imported goods from the USMCA countries of Canada and Mexico for non-preferential purposes. With this regulatory change, all non-preferential country of origin determinations by CBP for goods imported from Canada or Mexico would be based on the tariff shift rules in 19 CFR part 102.

Since importers must exercise reasonable care in determining the country of origin of their goods and may seek advice from CBP to determine the country of origin for their goods for preferential and/or non-preferential purposes; the proposed solution means CBP will no longer need to issue CBP rulings with non-preferential origin determinations for goods imported from Canada or Mexico, and there would no longer be rulings that conclude that a good imported from Canada or Mexico has two different origins under the USMCA (i.e., one for marking and one for other, customs non-preferential purposes).

CBP is proposing these changes to simplify and standardize country of origin determinations by CBP for all non-preferential purposes for goods imported from Canada or Mexico.

Comment Opportunity

Interested persons are invited to comment on the proposed rule by submitting written data, views, or arguments on all aspects of the proposed rule. CBP is seeking comments related to the economic, environmental, or federalism effects that might result from this proposed rule.

Deadline: Comments must be received on or before September 7, 2021 (extended from August 5, 2021).

Impacted Parties

Certain Canadian and Mexican importers are directly affected by the proposed change. In fiscal year (FY) 2019, 38,832 importers made 2.6 million non-NAFTA-preference entries. All of these entries were subject to non-preferential country of origin marking requirements, and some were also subject to trade remedies, that involve case-by-case adjudication. Around the same time, in FY 2020 and the start of FY 2021, CBP issued 52 rulings determining the origin of goods imported from Canada and Mexico for non-preferential purposes. These rulings, except for those involving the importation of certain textile and apparel products, were issued on a case-by-case basis to determine whether such goods were substantially transformed in Canada or Mexico or another country.

Impact on other Free Trade Agreements

While the Federal Register Notice (86 FR 35422) announcing the proposed rule and requesting comments from trade is focused on USMCA, this may be the future for all FTAs. The  Federal Register Notice makes clear that  19 CFR 102 was established to promulgate the U.S.’s responsibilities under the North American Free Trade Agreement (NAFTA); however, thereafter, 19 CFR 102 has been extended to apply to numerous other FTAs as CBP has found them to be reliable, simplified, and standardized method to determining the COO of a good. Specifically, 19 CFR §§ 102.21 through 102.25, are also to be used by CBP to determine the COO of textile and apparel products (imported from all countries except Israel).

As we learn more, we will keep you up to date on whether this change will also be adopted for FTAs that are silent as to how the country of origin should be determined for marking and other non-preferential purposes.

Contact Us

Jennifer Diaz and Denise Calle have extensive expertise on FTA’s and in preparing and submitting comments for federal rulemaking. Please reach out to our trade attorneys to prepare and submit your comments to CBP. If you would like more information on this issue, contact Diaz Trade Law at info@diaztradelaw.com and 305-456-3830.

Co-Authored by Jen Diaz & Denise Calle

A lot has happened in the first 6 months of the Biden administration. Notable developments include (at least temporary) resolutions in the large civil aircraft and digital service tax disputes, consensus around a global minimum corporate tax of 15%, lawsuits pertaining to Section 232, increased export controls enforcement, shifting U.S. policy stances on Cuba, and more. However, the most important developments pertain to the ongoing U.S.-China trade war. The U.S. and China are engaged in ongoing negotiations while tensions have risen, a lawsuit challenging Trump’s imposition of 301 tariffs are underway, and a massive U.S. competitiveness bill is being considered in Congress that could bring back broad China tariff exclusions. Join us for a jam-packed hour where we discuss everything that has happened in the world of U.S. trade policy over the past 6 months, and provide insight into how Biden’s trade policies affect industry.

Register today to hear from this experienced trio:

• Todd C. Owen is the former Executive Assistant Commissioner, U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO). As the senior executive for the Office of Field Operations for over 5 years, Mr. Owen was responsible for all operations at the 328 ports of entry in the United States, as well as overseas operations in 32 countries.
• President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade.
• Associate Attorney of Diaz Trade Law, Sharath Patil, assists U.S. manufacturers, distributors, and importers with a range of export compliance and enforcement matters pertaining to the U.S. Department of Commerce; the U.S. Treasury Department; the U.S. State Department; and more.

This one-hour webinar provides an overview of President Biden’s Trade Policy six months into his presidency, an update on CBP enforcement actions, and a summary of Congressional actions pertaining to trade policy.

In This Webinar You Will Learn:

• An Update on the Status of the Section 301 Lawsuit
• An Overview of Key Developments in the U.S.-China Trade War under Biden’s Administration
• Congressional Developments under Biden
• Status of CBP Enforcement Efforts under Biden
• Recent Developments in the Miscellaneous Tariff Bill and Generalized System of Preferences
• The Impact of Economic Stimulus Efforts on Trade Flows
• An Update on USMCA Implementation
• The Latest on U.S.-Cuba Trade
• And Many Other Developments

Who Should Attend:

• Importers/Exporters
• Customs Brokers
• Regulatory Affairs Professionals
• In-house Legal Counsel
• Product Development Managers
• Others Interested in Trade Policy

This webinar is eligible for continuing education credit from the NCBFAA Educational Institute. Space is limited, registration required! Access instructions will be provided after your registration is complete. Don’t just take our word for how awesome Diaz Trade Law webinars are. Click here to see what our past attendees had to say. Be sure to join us on July 28, 2021!

Source: U.S. Census Bureau

Co-Authored by Sharath Patil, a trade policy researcher in Washington, DC., with a background in global logistics, international trade, and commercial diplomacy. Patil is an active member of the District of Columbia bar, and is a graduate of the University of Oregon School of Law.

What and Where do Floridians Export?

Exports are big business in the Sunshine State. In 2019, export sales brought $56.3 billion into Florida’s economy. International trade has supported 2.4 million Floridian jobs. Floridians export a wide array of goods all over the world. In 2019, the top export markets for Florida’s goods were Brazil, Canada, and Mexico, respectively. See Chart 1. We will discuss the significance of each of these markets, in turn.

Export Market #1: Brazil

Brazil is Florida’s largest export market. Florida merchandise exports to Brazil were valued at $4.5 billion in 2019. Floridians have relied on Brazil as a top export partner for many years. Brazil’s important relationship with the state of Florida has been strengthened by the contributions of Florida’s large Brazilian-American community, which has grown to be 300,000 strong in recent years – becoming the largest Brazilian community in any U.S. state. Additionally, more than one million Brazilians visit Florida annually. The Consulate General of Brazil in Miami’s Economic and Commercial Affairs Office and the Brazil-Florida Business Council are helpful resources for Floridian businesses wishing to export to Brazil.

Top Floridian exports to Brazil are comprised of the following categories:

Export Market #2: Canada

Canada was Florida’s second-largest export market in 2019. Florida merchandise exports to Canada were valued at $4.4 billion in 2019. In fact, a 2017 study found that Florida’s trade with Canada supports 446,300 Floridian jobs. Furthermore, Canadians significantly invest in Florida. A large community of Canadians who spend the winter months in Florida, known as snowbirds, have invested billions of dollars into Florida’s economy, including its real estate market. Enterprise Florida, a Florida state government international trade resource, operates an office in Canada and assists Floridians with export and investment opportunities in Canada. Additionally, Canada operates a consulate in Miami.

Top Floridian exports to Canada are comprised of the following categories:

Export Market #3: Mexico

Mexico is Florida’s third largest export market. Florida merchandise exports to Mexico were valued at $3.3 billion in 2019. A 2017 study found that Florida’s trade with Mexico supports 304,100 Floridian jobs. Mexico operates consulates in Miami and Orlando. Although Florida has long enjoyed a strong trade relationship with Mexico, a recent agreement between the Florida Ports Council and the Mexican Coordinadora de Puertos has sought to increase maritime trade between Florida and Mexico. Miami has one the nation’s largest maritime ports, so the opportunities for increased seaborne trade with Mexico are promising.

Top Floridian exports to Mexico are comprised of the following categories:

Resources

Exports are an important dimension of Florida’s economy, and opportunities abound for Floridian manufacturers and service-providers. If you think exporting might be right for you, be sure to look into resources such as the South Florida District Export Council (as a board member of the South Florida DEC, Jen Diaz is happy to answer any questions you have) and the U.S. Commercial Service Florida.

Florida exporters should work to ensure their exports are complaint with U.S. trade and customs laws. Do not know where to start? Check out the Top 10 Tips When Exporting. Have questions about exporting compliantly or want more information on your specific products? Contact info@diaztradelaw.com.

DATA NOTES: All trade flow data is sourced from the U.S. Census Bureau. Trade data is adjusted for inflation to base month June 2020. Trade data reflects merchandise trade only, and does not include trade in services.