New Tariffs and Further Delays: An Update on U.S. Trade Policy Relevant to Security Technology Products

In February 2025, the Security Industry Association (SIA) analyzed the Trump administration’s initial implementation of tariffs on products from China, Mexico and Canada. The administration’s 10% tariffs on all imports from China pursuant to the International Emergency Economic Powers Act (IEEPA) went into effect on Feb. 4, while the higher 25% tariffs on all imports from Mexico and Canada were delayed by a month due to agreements that their respective leaders made to help address migration and illicit drug trade along the U.S. border.

On March, as the Canadian and Mexican tariffs went into effect, President Trump raised the new tariffs on imports from China to 20%. In the days after implementation, the administration amended its policies on imports from Canada and imports from Mexico so that the new rates would not be imposed on products covered by the U.S.-Mexico-Canada Agreement (USMCA) that satisfy the rules of origin. This exemption was originally created only for USMCA-compliant automakers and was extended to all USMCA-compliant products in response to a wave of industry activity across sectors.

To qualify as USMCA compliant, goods must go through a “substantial transformation” within the USMCA region and must meet a regional value content (RVC) based on the transaction value or the net cost. In general, outside automotives, which have a higher RVC and other country of origin requirements, at least 60% of the transaction value for the final product must originate in the USMCA region, or at least 50% of the net cost must be from the region, to qualify for this preferential treatment.

President Trump has stated that this pause on USMCA-compliant goods is merely a transition into April. The administration has announced that tariffs on imported steel and aluminum will go into effect on March 12 and to expect additional tariffs to go into effect on April 2. Trade actions continue to be tied to the crisis along the U.S. border, as these tariffs are implemented under the IEEPA. Commerce Secretary Howard Lutnick has indicated that tariffs will continue until Trump is “comfortable” with how Mexico and Canada are handling the flow of fentanyl, and the administration continues to message that the back-and-forth tariffs are part of “a drug war, not a trade war.” Nevertheless, our North American neighbors are responding to these actions with their own trade policies, to varying degrees. Mexican President Claudia Sheinbaum held off any announcement of retaliatory tariffs and continued to maintain a “respectful dialogue” with the United States, thanking President Trump for his delay and noting that the two countries will continue to work together to curb the trafficking of fentanyl and guns across the shared border. Canada has taken a more aggressive approach, announcing a round of retaliatory tariffs on $155 billion worth of imported goods, although the country’s government has promised to delay an increase in the scope of these additional tariffs for the length of the USMCA exemption.

To see whether your product will be potentially be subject to these tariffs, you can refer to the Harmonized Tariff Schedule of the United States, which sets out the tariff rates and statistical categories for all merchandise imported into the United States. This resource is regularly updated to include additional duties and general rules of interpretation for free trade agreements.

SIA was very active in engaging the federal government regarding  tariff implementation in the first Trump administration, and we are continuing to monitor this trade policy and any opportunities for an exclusion process. We welcome any input from members about the impact of the tariffs. If you have any questions or comments, please don’t hesitate to reach out to Lauren Bresette, senior manager of government relations at SIA, at lbresette@securityindustry.org.