According to the U.S. trade policy published on January 20, 2025 " America First Trade Policy Memorandum"¹, the U.S. authorities should have investigated the causes of unfair and unbalanced trade.

President Donald Trump ordered the Secretary of Commerce to investigate the causes and implications of trade deficits and propose solutions, such as a global supplemental tariff.²  The investigation also seeks to identify the countries imposing the highest tariffs that have generated a trade deficit with the United States and recommend specific tariffs for each country.

Reciprocal Tariffs

On April 2, 2025, the reciprocal tariff policy "Regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits" was published on the official White House website.^3.

The policy establishes two phases for the application of reciprocal tariffs:

Annex I: Country-specific ad valorem duty rates.

Customs and Border Protection (CBP) will issue procedures that importers must follow to comply with these changes.

What actions should I take?

A reconfiguration of international trade, increased costs, and challenges related to compliance with new regulations are anticipated. Companies must adapt proactively to reduce financial, customs, and tax risks throughout the value chain.

It is necessary to implement a comprehensive analysis and mitigation strategy involving areas such as supply chain, foreign trade, customs, finance, tax, and transfer pricing.

How can we help you?

To evaluate tariff impact on a country-specific basis, we list the cases of Mexico, Canada, China, Colombia and Costa Rica.

Case: Mexico 

What's next?

There is no date for the end of these tariffs, and each affected country may generate reciprocal measures, so tariff changes are expected¹² as the different countries negotiate with the United States. It will be important to keep abreast of the information emerging in the next few days regarding updates on the issue and Mexico's posture.

At JA DEL RÍO, we offer strategic services to advise you on this and any other considerations, ensuring your company remains compliant with these new regulations. Please contact us at: contacto@jadelrio.com.

Bernardo Del Río - Managing Partner

Antonio Ávila - Foreign Trade Partner

This newsletter is for information purposes only and should not be construed as a legal, tax or accounting opinion. Since each situation may present specific particularities, it is recommended that you analyze the specific facts of each case with the assistance of your legal and tax advisors before making any decision based on this information.

^*References:

^{(1)The White House. - 2025, January 20. America First Trade Policy Memorandum.}

^{(2) See also: "The White House", 2025, January 20.}

^{(3) The White House. 2025, April 2. Regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits.}

^{(4) Executive Office of the President. 2025, February 1. Executive Order 14194: Imposing duties to address the situation at our southern border. 90 Fed. Reg. 9117. as amended by Executive Order 14198 of February 3, 2025: "Progress on the Situation at Our Southern Border," 90 FR 9185; and Executive Order of March 2, 2025: "Amendment to Duties to Address the Situation at our Southern Border."}

^{(5) Executive Order 14193 of February 1, 2025: "Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border," 90 FR 9113; as amended by Executive Order 14197 of February 3, 2025: "Progress on the Situation at Our Northern Border," 90 FR 9183; and Executive Order of March 2, 2025: "Amendment to Duties to Address the Flow of Illicit Drugs across our Northern Border."}

^{(6) Executive Order 14200 of February 5, 2025: "Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China," 90 FR 9277 (issued on February 7, the order was later backdated to February 5.}

^{(7)U.S. Customs and Border Protection. N.D. Trade remedies. U.S. Department of Homeland Security.}

^{(8) Free Trade Agreements: Colombia}

^{(9) Embajada de Colombia en Estados Unidos. N. D. Asuntos económicos. Ministerio de Relaciones Exteriores de Colombia.}

^{(10) Dominican Republic-Central America FTA (CAFTA-DR)}

^{(11) U.S. Embassy in Costa Rica. (n.d.). Política y historia. U.S. Department of State.}

^{(12) See also: The White House. 2025, January 20.}