Duties on Canadian Energy Products Begin

Regulatory Alert

Duties on Canadian Energy Products Begin

EMA Regulatory Counsel Contacts: Jeff Leiter and Jorge Roman

Tuesday, March 4, 2025 – Effective at 12:01 a.m. on March 4, the Trump Administration has imposed 25 percent tariffs on Canadian and Mexican imported goods, using authorities under the International Emergency Economic Powers Act and the National Emergencies Act to levy the duties on the U.S.’ two trade treaty partners. Importantly for energy marketers, imports of “energy resources” from Canada will be subject to a lower 10 percent ad valorem rate of duty.

A Federal Register notice published today defines “energy resources” as “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals.” Thus, motor fuels and heating oil imported from Canada will be subject to the lower 10 percent tariff. There is no applicable de minimis exemption for motor fuels and heating oils, and there is no exclusionary process for any of the new duties.