The decision by the U.S. administration to postpone the imposition of tariffs on goods covered by the United States-Mexico-Canada Agreement (USMCA) has sparked a wave of intense activity from U.S. companies seeking tariff exemptions.

The White House had imposed a 25% tariff on imported goods from Canada and Mexico on March 5. However, it later announced a postponement of the application of tariffs on goods covered by the USMCA until April 2, according to a report by Reuters. The agreement grants preferential treatment to goods imported from the three participating countries, provided that the products contain a certain percentage of value added within these countries.

In this context, Brian Riley, Senior Vice President at Geodis logistics services, stated, “We see importers racing to obtain the USMCA certification… the stakes are very high if they do not.”

Many companies, especially small ones that rely on cross-border trade, are striving to verify that their products meet the requirements for tariff exemption. According to a report by S&P Global Market Intelligence, only 37.8% of Canadian imports and 48.9% of Mexican imports to the U.S. currently qualify for tariff exemptions under the agreement.

To secure the exemption, importers must analyze the list of raw materials used in production to ensure compliance with the agreement's requirements. In this regard, Mike Short, Head of Global Shipping at C.H. Robinson, mentioned that there has been a noticeable increase in applications for USMCA certification and tariff classification even before the announcement of official amendments. He added, “As the amendments come into effect, applications have increased significantly, and we expect this trend to continue.”

Short pointed out that many companies had previously avoided obtaining USMCA certification due to the complexity of the procedures and the costs associated with compliance, especially since their goods were entering the U.S. market duty-free. However, even after obtaining the certification, companies are still required to maintain detailed records for up to five years to ensure ongoing compliance.

Riley confirmed that companies are taking precautionary steps to obtain USMCA certification, given the uncertainty of continued exemption after April 2, or even the possibility of tariffs being reimposed in the future.

This ambiguity has prompted companies to reevaluate their strategies. In this context, Sung Choi, Vice President of Product Management at E2open supply chain solutions, stated, “When the government imposes tariffs of 25% to 50% on most goods, companies find themselves forced to consider options that were not previously necessary, such as qualifying for the USMCA.”