Amendment to Duties To Address the Flow of Illicit Drugs Across Our Southern Border

What it means

Modifies a previous tariff order by exempting Mexican automotive goods that qualify for duty-free treatment under existing trade agreements. It also reduces tariffs on potash imports from 25% to 10%. These changes take effect March 7, 2025.

Expected impact

• Relief for the U.S. automotive industry that relies on cross-border supply chains with Mexico
• Preservation of automotive manufacturing jobs in the United States
• Reduction in potential price increases for vehicles produced with Mexican parts
• Lower costs for agricultural products that use potash as a fertilizer component
• Balances border security concerns with economic interests by maintaining some tariffs while creating targeted exemptions for strategic industries