ExecutiveOrdersEO
EO 14198Executive OrderTrump 47 · R

Executive Order 14198

Progress on the Situation at Our Southern Border

This executive order pauses the 25% tariffs on Mexican goods that were scheduled to take effect February 4, 2025, pushing the start date to March 4, 2025, to allow time to assess whether Mexico's cooperative steps on migration and drug trafficking are sufficient. It withdraws exceptions for goods already in transit and directs continued assessment by homeland security and other officials during the pause period.

Federal Register Open PDF 90 FR 9185

Impact dates

  1. Paused 25% tariffs on Mexican goods take effect if not further delayed

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AutosAgricultureOil & gasSteel & aluminumOther industrial

Mechanisms

Tariff

Role pressure

  • MixedImporter — Temporary reprieve from 25% tariff cost, but with heightened uncertainty due to March 4 cliff and withdrawn in-transit exceptions
  • AdverseTrading-partner exporter — Mexican exporters face continued threat of tariffs and now lack in-transit protection; pressure to demonstrate cooperation to US
  • UncertainDownstream manufacturer — Supply chain planning disrupted by conditional pause; cannot assume tariff will or will not materialize

Geographies

USMX

Exposure dates

  • — Paused 25% tariffs on Mexican goods take effect if not further delayed

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

AAPLAppleADMArcher Daniels MidlandBGBungeFFordGMGeneral MotorsHYMTFHyundai MotorSHELShellSTLAStellantisTSLATeslaTMToyotaTSNTyson FoodsVALEVale

Confidence: high · Policy alerts

Key directives

  • Pause 25% ad valorem tariff on Mexican goods until March 4, 2025 at 12:01 a.m. ET
  • Amend EO of February 1, 2025 to replace 'February 4, 2025' with 'March 4, 2025' in sections 2(a), 2(d), and 2(e)
  • Withdraw in-transit exceptions for covered goods loaded onto vessel or on final mode of transport prior to US entry
  • DHS Secretary to continue assessing southern border situation in consultation with Secretary of State, Attorney General, APNSA, and APHS

Who is ordered

Timeline

Immediate

  • Tariff pause takes effect; February 4 tariff start date no longer operative
  • In-transit exceptions for covered goods withdrawn immediately

Near term (90d)

  • March 4, 2025 tariff cliff if assessment finds Mexico's steps insufficient
  • Ongoing assessment of southern border situation by DHS Secretary

Long term

  • Potential for tariff implementation or further policy adjustments based on crisis assessment

Risks & tensions

  • In-transit exception withdrawal may strand shipments already en route, creating compliance confusion
  • Conditional nature of pause creates policy uncertainty for trade planning
  • Vague standard for 'sufficient steps' by Mexico leaves discretion entirely with President
  • IEEPA tariff authority remains legally contested in other litigation
Executive Order 14198: Progress on the Situation at Our Southern Border · Executive Orders