Imposing Duties To Address the Situation at Our Southern Border
This document is Executive Order 14194, signed by President Donald J. Trump, issued February 1, 2025 (with a signing date of January 31, 2025 noted in margin). It expands the national emergency declared over border security and illicit drug flows and uses that emergency to authorize a new tariff policy aimed at Mexico. Specifically, the order declares that Mexico’s failure to curb drug trafficking organizations (DTOs) and illegal migration constitutes an unusual and extraordinary threat to the United States, and it expands the authority under the National Emergencies Act (NEA) and the International Emergency Economic Powers Act (IEEPA) to address this threat. The central action is to impose a 25% ad valorem tariff on articles that are products of Mexico, with details on how the tariff will be administered, when it takes effect, and how it could be adjusted or removed if Mexico takes sufficient cooperative steps. The order also directs the relevant agencies to implement the measures, report to Congress, and consider additional actions if Mexico does not cooperate. In short, the executive order weaponizes tariffs on Mexican-made goods as a lever to pressure Mexico to act against drug trafficking and illegal migration, tying the tariff to ongoing assessments of Mexico’s cooperation. It promises periodic oversight and potential escalation or removal based on Mexico’s actions, while outlining how the tariff will be implemented through U.S. tariff schedules and related trade rules.
Key Points
- 1Establishes a national emergency expanded to include Mexico’s alleged failure to curb drug trafficking and illegal migration, using IEEPA and NEA to justify the action and to impose ad valorem tariffs on Mexican-origin articles.
- 2Imposes a 25% additional tariff on articles that are products of Mexico, effective for entries on/after 12:01 a.m. ET February 4, 2025, with a transition rule for shipments loaded before February 1, 2025 that allows an importer certification to avoid the extra duty.
- 3Requires modifications to the Harmonized Tariff Schedule (HTSUS) and Federal Register notices to implement the tariff, and clarifies that duties are in addition to any existing duties or fees; no drawback or de minimis treatment for these articles.
- 4Allows the President to expand or adjust the tariffs if Mexico retaliates or does not cooperate, and provides a mechanism for removing the tariffs if Mexico takes adequate cooperative steps to address the border and opioid crisis.
- 5Requires regular, interagency coordination (DHS with State, Justice, National Security Adviser, etc.), reporting to Congress on the national emergency, and allows ongoing actions to implement the order within the law and available appropriations.