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A surge in U.S. businesses is seeking tariff exemptions under the U.S.-Mexico-Canada Agreement (USMCA) following a temporary pause on new import levies imposed by President Donald Trump. Industry experts report a sharp increase in companies attempting to secure duty-free status before the April 2 deadline.
The Rush for USMCA Certification
The White House announced fresh 25% tariffs on imports from Canada and Mexico on March 5 but later delayed their enforcement on USMCA-covered goods. This delay has sparked a rush among importers to obtain certification under the trade deal, which grants preferential treatment to goods that meet specific regional value thresholds.
“We’re seeing importers rush to become USMCA certified … the risk is just too high not to,” said Brian Riley, Senior Vice President of Customs House Brokerage at logistics firm GEODIS.
Many small businesses, particularly those reliant on cross-border trade, are scrambling to verify whether their products already qualify for exemptions. According to S&P Global Market Intelligence, only 37.8% of imports from Canada and 48.9% from Mexico currently qualify for duty-free status under USMCA.
Navigating Compliance & Certification Challenges
For importers to qualify, they must analyze their bill of materials (BOM) to ensure compliance with USMCA’s rules of origin. This process, often avoided due to its complexity and associated costs, has now become a priority given the looming tariff increase.
Mike Short, President of Global Forwarding at freight company C.H. Robinson, noted a growing number of businesses inquiring about USMCA certification and tariff classification even before the official announcement. “Now that the official amendments are published, these requests have only increased, and we expect this trend to continue.”
Even after certification, businesses must maintain compliance records for up to five years post-import, adding another layer of administrative burden.
Uncertainty Drives Strategic Moves
Despite the short-term relief, many businesses remain cautious. “Companies are hedging their bets by becoming USMCA certified because who’s to say the exemption may not continue after April 2? Or, if the exemption expires, what if it returns in the near future?” Riley added.
With tariffs potentially reaching 25-50%, businesses that previously ignored certification are now forced to explore their options. “If you are slapping these levels of tariffs on everything, companies that never previously needed to are now evaluating USMCA certification as a necessity,” said Sung Choi, Vice President of Product Management at supply chain solutions provider e2open.
As uncertainty looms over U.S. trade policy, businesses are taking a proactive stance to minimize risk and ensure supply chain stability.
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