Recent shifts in trade policy have led to significant tariff adjustments, impacting supply chains across multiple industries and regions. As global trade dynamics continue to evolve, businesses must stay informed and proactive in adapting their sourcing, logistics, and cost management strategies.
With new tariffs affecting key imports, businesses are facing rising costs, potential supply chain disruptions, and changing trade routes. Whether you're navigating shifts in manufacturing, adjusting freight strategies, or reassessing vendor relationships, understanding these developments is essential to maintaining operational efficiency.
In this article, we’ll break down the latest tariff updates, their potential impact on supply chains, and strategies to minimize disruptions and optimize your logistics network.
Steel and aluminum tariffs
On February 10, 2025, President Donald Trump announced a significant escalation of tariffs on steel and aluminum imports, raising them to 25% across the board with no exemptions. While this move aims to protect domestic metal producers, it has major implications for supply chains, manufacturing, and global trade logistics. **These tariffs will go into effect on March 12.
Key Changes to the Steel and Aluminum Tariffs
🚨 Higher Costs on Steel & Aluminum Imports: All imports will now face a 25% tariff, including those from key suppliers like Canada, Mexico, Brazil, and South Korea.
🔄 New North American Processing Requirement: To qualify for duty-free trade, steel and aluminum must now be fully processed within North America, limiting the use of raw materials from countries like China and Russia.
📆 Effective Date: March 12, 2025
These tariff changes will likely increase transportation costs, disrupt established supply chains, and create pricing volatility for raw materials—all of which could have a ripple effect on manufacturing and logistics operations.
Key Chinese Tariff Updates
✅ (First Round): February 4, 2025. A 10% tariff is now applied to most imports from China
✅ (Second Round): March 4th, 2025. An additional 10% tariff was applied to most imports from China, effectively bringing the total to a 20% tariff.
✅ De Minimis Rule Changes: The $800 duty-free exemption no longer applies to shipments originating from China and Hong Kong (Update 2/10/25: Delayed temporarily)
✅ China’s Response: Tariffs on U.S. energy exports and an antitrust investigation into Google. On March 4th, 2025, China’s Ministry of Finance has imposed 15% tariffs on U.S. imports of chicken, wheat, corn, and cotton, along with 10% tariffs on a variety of other agricultural products, including soybeans and dairy.
These policy changes are expected to increase costs for importers, e-commerce businesses, and manufacturers sourcing from China, while also reshaping cross-border fulfillment strategies.
Mexico & Canada Tariffs: Current Status
On March 6, 2025, President Trump announced the delay of tariffs totaling 25% against Canada and Mexico. The waiver on products in compliance with the USMCA trade agreement will last until April 2, 2025.
How These Changes Impact Your Supply Chain
Tariff adjustments can significantly affect supply chains, leading to increased costs, shifting trade routes, and potential delays at ports and distribution centers. Businesses that rely on just-in-time inventory, international sourcing, and cost-efficient transportation strategies will need to reevaluate their logistics operations to stay competitive.
New trade restrictions and tariff increases could impact importers across various industries, from manufacturing and retail to automotive and e-commerce. Changes to duty exemptions, raw material costs, and sourcing regulations may require businesses to explore alternative suppliers, nearshoring strategies, or domestic production solutions to mitigate financial strain.
Companies that move goods across borders, particularly in North America, should prepare for potential customs delays, higher freight costs, and shifting trade policies that could affect how and where they do business. Ensuring supply chain flexibility and working with logistics partners that offer real-time visibility and compliance expertise will be key to navigating these challenges.
Adapting to Change: How Averitt Can Help
While these tariff changes present challenges, they also create opportunities to rethink and optimize your supply chain. Averitt’s integrated solutions help businesses minimize disruptions and reduce costs.
1. In-House Customs Clearance Expertise
Navigating tariff changes and compliance requirements can be complex, but Averitt’s licensed in-house customs clearance team is here to help. Our experts provide:
✅ Tariff Impact Analysis – Understand how new regulations affect your shipments
✅ Duty Mitigation Strategies – Explore cost-saving opportunities, including alternative sourcing and trade programs
✅ Compliance Assistance – Avoid delays and penalties with expert customs guidance
📌 Learn more about our customs clearance solutions here.
2. Diversify Your Sourcing & Explore Nearshoring
Looking to shift production closer to home? Our network supports businesses exploring nearshoring solutions in Mexico and across North America.
🔹 International Logistics Solutions – End-to-end support for global trade, including customs clearance, transportation, and compliance assistance.
3. Faster, Cost-Effective Imports with Asia Express
For businesses still sourcing from Asia, our Asia Express Service reduces transit times and improves cost-efficiency for shipments coming from China.
🔹 Asia Express Ocean – A streamlined solution for faster shipping from Asia.
🔹 Asia Express Air – When speed matters, our air freight option ensures rapid delivery with full visibility.
4. Warehousing & Fulfillment Solutions
With tariff changes impacting cross-border fulfillment, having a strategic domestic distribution plan is more important than ever. Averitt offers flexible, contract-free Distribution and Fulfillment solutions to help businesses optimize inventory placement and reduce costs.
Navigating Uncertainty with Confidence
Trade policies and tariffs will continue to evolve, but staying informed and having a flexible supply chain strategy is key. Whether you're adjusting your sourcing, shifting inventory closer to your customers, or looking for alternative shipping solutions, Averitt is here to support you.
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