Last updated: 13/03/2025
Donald Trump's second term as US President has begun in an expected fashion, with a raft of executive orders on a huge range of policy matters. Crucially however, for international shippers, new tariffs on US imports have made headlines repeatedly.
With unpredictable tariff announcements, businesses face constant uncertainty, making it difficult to understand costs and conduct long-term planning. Understanding which goods are affected, when tariffs take effect, and whether exemptions or retaliatory measures apply is a time-consuming task.
However, that is what we are doing in this article. Here we will outline the latest information on US import tariffs, and our recommendations for trading with the US for the months ahead.
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Latest information on US import tariffs
Tariffs on Mexico and Canada
25% tariffs on all Mexican and Canadian products heading to the USA were introduced on March 4th. According to Donald Trump it came as Canada failed to crack down effectively on illegal fentanyl imports. Meanwhile, Mexico is being accused of that and a failure to tackle illegal immigration.
However, by March 6th, Trump had signed some exemptions to products moving between the countries.
Carmakers were the first to be spared the 25% tariffs, which Mexican President Claudia Sheinbaum thanked Trump for. Now companies moving goods which fall under the US-Mexico-Canada agreement (USMCA) will not be subject to tariffs.
An official from the White House stated that this means about 50% of US imports from Mexico and 62% from Canada may still face tariffs. The exemptions are in place until April 2nd.
The 25% tariffs had initially been announced on February 1st 2025, but were delayed for 30 days after last minute negotiations from both the Canadian Prime Minister and Mexican President.
In response, former Prime Minister Justin Trudeau announced Canada will be implementing 25% tariffs against $155 billion of American products. Starting with $30 billion worth of goods immediately, and the remaining $125 billion on March 21st.
Canada's finance minister has since said that the country would hold of the majority of these tariffs following the delay from Donald Trump.
However, the incoming Prime Minister Mark Carney was bullish in his tone regarding tariffs after his election. In his opening speech, Carney vowed to win the trade war against the USA.
"Donald Trump thinks he can weaken us with his plan to divide and conquer... the Canadian government has rightly retaliated and is rightly retaliating with our own tariffs which will have maximum impact in the United States and minimum impact here in Canada... My government will keep these tariffs on, until the Americans show us some respect."
Incoming Canadian Prime Minister, Mark Carney
US tariffs on China
The US has imposed a 20% tariffs on all Chinese imports. The first 10% of which came into force on 4th February 2025, with a second 10% added on 4th March.
In response, China announced retaliatory tariffs, the first round of which came in on 10th February. China's tariffs then included a 15% border tax on imports of US coal and liquefied natural gas products. There is also a 10% tariff on American crude oil, agricultural machinery and large-engine cars.
On 4th March, China announced further measures in response to the second 10% round of US tariffs. More US agricultural goods have been hit with 10-15% tariffs and many US firms in aviation, defence and technology have been added to an "unreliably entity" list.
Alongside this, Chinese were briefly removed from the de minimis exception, until Trump paused the removal after just a few days. The law allows shipments under $800 to enter the US duty-free and is hugely significant for the air freight sector specifically. Tens of millions of e-commerce, apparel, and consumer goods are shipped from China to the USA via air freight, as part of this rule. Removing China from this exception briefly caused confusion and additional fees for consumers, before an executive order reinstating it.
The US President has made clear his desire is to see China removed from the de minimis exception again, once the infrastructure to process the high volume of parcels falling outside the scheme is in place.
The tariffs implemented so far are sizeably smaller than the 60% tariffs that Trump spoke about during the election campaign. Therefore shippers need to be mindful these are just the opening exchanges of a potentially larger tariff war between the nations.
If moving goods between China and the USA, you should prepare for more disruptions, cost adjustments and reassess sourcing strategies.
Tariffs on steel and aluminium
On February 9th, Donald Trump announced a 25% import tax on all aluminium and steel imports into the US. These were implemented against original steel products and derivatives on March 12th. They apply to every country trading with the US.
In response, the EU is to implement tariffs on €26bn worth of US goods. Canada stated plans to target C$28.9bn worth of US exports with tariffs. China said it will take "all necessary measures" to protect its interests.
Prime Minister Keir Starmer said "all options are on the table" but that the UK is taking a pragmatic approach as it pushes for a trade deal with the US.
There are only very limited exemptions to the tariffs, when the product being imported into the US was made from steel that was originally melted and poured in the US. Or from aluminium that was smelted and cast in the US.
The agreements for special duty rates of steel and aluminium imports from Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, Ukraine, and the UK have all been terminated.
US tariffs on the UK & EU
Following the visit of UK Prime Minister Keir Starmer on February 27th, US relations with the UK appeared to warmer than most others. Donald Trump not only reiterated that he doesn't think the US will need to impose tariffs on the UK. But went even further than that, stating a trade deal could happen "very quickly".
However, there has been no further development on what this could look like, or a timeline for negotiations or implementation.
Separately, Trump has all but confirmed that the EU could be subject to import tariffs into the USA. In an attempt to address the "$300bn" trade deficit that exists between the EU and US. Whilst there is a significant trade deficit, official figures show this is closer to $161 billion on goods, but actually a trading surplus on services.
Trump has specifically highlighted the 10% tariff that the EU imposes on US car imports, whilst the US only charges 2.5% on cars not made locally.
"They don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products."
Donald Trump, US President
On Monday 24th February, Trump hinted that tariffs on the EU could be as much as 25%, similar to those he has pushed on Mexico and Canada. There has been no further development or announcement on tariffs against the EU so far.
US tariffs on other countries
On February 13th, the White House released a memorandum titled Reciprocal Trade and Tariffs, which explained the new administrations' aims to address the United States' trade deficit and perceived unfair trade practices by other nations.
Under the plan, the new administration would be assessing what tariffs to impose on other countries, taking several factors into account:
- Tariffs imposed on U.S. products.
- Unfair taxes, such as value-added taxes, affecting US businesses and consumers.
- Non-tariff barriers, including subsidies and regulatory requirements hindering US businesses abroad.
- Policies causing exchange rate deviations detrimental to the US.
- Any other practices limiting market access or fair competition.
The memo states a desire to see the plan for tariffs to be back in 180 days, although Commerce Secretary, Howard Lutnick has promised his team will have it by 1st April.
The policy we have heard repeatedly is that the US will match the tariffs other countries are imposing on their goods.
"These are unprecedented times across the entire industry and its not always easy to predict what's to come next. There has been a flurry of activity in President Trump's first few weeks alone which has been hard to keep track of. I do anticipate to continue to see more executive orders issued in 2025."
Kimberly Roddy, LCB, CCS, Customs Compliance Manager, WTA
Advice for shippers with US import tariffs
Ensure you have a valid proof of origin
When import tariffs into the US are regularly being announced, it's never been more vital to ensure you have proof of origin for your products. You may need to provide clear and verifiable proof of origin to benefit from preferential trade agreements or to avoid incoming tariffs that shouldn't be levied against your goods. If you cannot prove tariff-free status, the authorities may impose tariffs which should not apply to your goods, regardless of their place of origin.
When exporting to the US, acceptable documentation includes a Certificate of Origin, which UK businesses can explore more about here, but every country has their own system for acquiring these. Manufacturer’s declaration and supplier invoices detailing raw material sourcing can also be valid forms of origin proof.
Re-evaluate the use of incoterms and your risk exposure
Given the unpredictability of new tariffs, shippers should review their incoterms to clarify who bears the financial burden of duties and taxes. Under DDP (Delivered Duty Paid) terms, exporters assume tariff risks, which could result in unexpected cost increases.
Whilst terms like EXW (Ex Works) or FOB (Free on Board) terms mean the burden is on the buyer, mitigating exposure to sudden tariff spikes, it might mean they request a return to the negotiating table on price.
Contract renegotiation may be necessary, particularly for long-term supply agreements. Be wary of tariff-related clauses in contracts.
Strengthen contingency planning and trade lane diversification
With tariff policies subject to sudden changes, reliance on a single trade route, supplier or customer increases risk.
Shippers should evaluate alternative sourcing and transit options, including for example bonded warehouse utilisation. If you are reliant on Chinese manufacturing, it may be beneficial to consider dual-sourcing strategies in Southeast Asia or Latin America to maintain supply chain resilience.
Evaluate your exposure as part of a detailed import strategy. Keeping multiple customs brokers engaged can also help navigate regulatory shifts efficiently.
Remain informed of news and announcements
Following the news and staying informed of developments of new tariffs is the best way to maximise the amount of time you have to react to changes and mitigate. Announcements are almost always in the public domain via the press, before being officially announced.
Engaging with a knowledgeable freight forwarder, with in-market US expertise, is a great way to limit the impacts of tariffs. Following newsletters such as WTA's weekly Market Update and the Freight Rate Forecast provide regular operational and political insight into the situation.