Trade Winds or Trade Wars? Navigating the US Tariff Tides of 2025
The year 2025 marks a significant shift in U.S. trade policy, with new tariffs and the introduction of “reciprocal tariffs,” disrupting global supply chains and impacting businesses worldwide. In this article, we provide an overview of these changes, highlighting their effects on costs, suppliers, and market competitiveness.
At Customs Support Group, we help businesses navigate new tariffs, addressing challenges like rising duties, complex classifications, and supply chain disruptions. Our expert team ensures your operations remain efficient, compliant, and cost-effective, providing tailored guidance to minimize the impact of these trade changes.
How Companies Can Prepare for These Changes
“In response to the newly announced tariffs by the U.S. Administration, companies engaged in international trade must act swiftly to assess their potential impact. Our first recommendation is to consult a customs agency specialist—not only to navigate immediate clearance procedures and avoid potential delays but also to understand the broader implications for their business,” said John Wegman, CEO of Customs Support Group.
Data Visibility
Many international companies lack full visibility into the duties they pay, as this data is often scattered across multiple customs brokers, systems, and countries. By consolidating and analysing this information, businesses can gain crucial insights into their exposure, identify potential cost-saving opportunities, and optimize their supply chains or sourcing strategies. A proactive approach now could help prevent costly disruptions and drive long-term efficiencies in global trade operations.
HS Classification
We also strongly advise companies to review their HS classifications to identify opportunities for duty optimisation and ensure they fully leverage existing free trade agreements. A strategic classification and trade agreement review could unlock significant cost savings and strengthen competitiveness in an increasingly complex global trade environment.
Recent and Upcoming Tariff Changes (January–April 2025)
-
New Tariffs on Automobiles (from April 3, 2025):
On March 26, 2025, President Donald Trump issued Proclamation 10908, introducing a 25% tariff on the importation of certain vehicles to the U.S., including passenger cars (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks. These tariffs, effective from April 3, 2025, apply to imports from all countries.
-
“Reciprocal Tariffs” System Announced (April 3, 2025):
Amercian President signed an executive order introducing a new tariff system aimed at addressing trade imbalances. The changes will be implemented in stages:
April 5, 2025:
A 10% minimum tariff will be applied to all imported goods to the U.S. (except for those already subject to higher tariffs).
April 9, 2025:
Tariff increases will target countries with the largest trade deficits with the U.S.:
- China: 34% (a total of 54%, including the existing 20% tariffs)
- EU: 20%
- UK: 10%
- Switzerland: 31%
- Norway: 15%
- Japan: 24%
- South Korea: 25%
Other countries will also face significant tariff hikes: USA Reciprocal Tariffs
Exclusions and Additional Restrictions:
- The 25% tariffs on steel, aluminium, and automobiles remain in place.
- E-commerce platforms like Temu and Shein will face stricter regulations due to the removal of the de minimis threshold, making it more difficult to import low-value shipments.
- New tariffs on electronics: Starting April 3, 2025, a 25% tariff will also apply to computers and laptops.
Earlier Trade Actions (January–March 2025)
January–February 2025:
Escalating conflict with Canada, Mexico, and China
- January 20, 2025: The U.S. announces its “America First Trade Policy,” focusing on protecting the domestic market.
- February 1, 2025:
Canada imposes retaliatory tariffs on U.S. food, household appliances, clothing, and cars.
President imposes 25% tariffs on Canada and Mexico, with an additional 10% on China.
February–March 2025:
Tariffs on steel, aluminium, and retaliatory actions
- February 10, 2025: The U.S. implements a 25% tariff on steel and aluminium from around the world.
- March 12, 2025: The EU announces retaliatory tariffs on U.S. goods.
- March 25, 2025:
A 25% tariff is imposed on countries importing oil from Venezuela, starting April 2, 2025.
Stay Ahead of the Curve with Customs Support
As global trade continues to evolve, keeping track of tariff changes and their implications is crucial. At Customs Support Group, we are committed to staying ahead of the curve and ensuring your business remains compliant and agile in the face of shifting trade policies.
Our experts are ready to assist you with navigating the complexities of international trade, providing tailored solutions to mitigate the impact of tariffs and optimize your customs processes.
Get in touch with us today to ensure that your business is prepared for whatever comes next in the world of trade.