Tariffs in 2025: What You Need to Know for Your Business to Stay Ahead

By Anthony De Filippis, Co-CEO, CargoTrans

Tariffs Are Escalating—Here’s What It Means for You
Tariffs are once again a top concern for businesses as the U.S. ramps up its trade policies. In February 2025, President Trump imposed new tariffs on China, Mexico, and Canada, announced higher tariffs on steel and aluminum, and initially moved to eliminate the de minimis rule—though that decision has since been suspended.

With retaliatory measures from China, Canada, and Mexico already in motion, companies must prepare for supply chain disruptions, higher costs, and a shifting trade landscape.

Here is what’s happening, what’s next, and how it affects your business.

Steel & Aluminum: Higher Tariffs and Global Impact
On February 10, 2025, President Trump announced a 25% tariff on all steel and aluminum imports, effective March 4, 2025.

Key Changes:
• The tariff applies universally, eliminating previous country-specific exemptions and quotas.
• Major suppliers—Canada, Mexico, Brazil, and South Korea—will be affected.
• The move aims to revive U.S. steel and aluminum production, but risks higher costs for manufacturers and supply chain disruptions.

Global Reaction:
• Asian and European steelmakers’ stock prices dropped sharply following the announcement.
• The EU is preparing countermeasures, possibly targeting U.S. agriculture and tech exports.
• China, already retaliating with tariffs, may expand its list.

For businesses reliant on steel or aluminum, now is the time to reevaluate supply sources and cost strategies.

Tariffs on China: No Signs of Softening
On February 1, 2025, Trump imposed a 10% tariff on all Chinese imports, which took effect on February 4.

Key Considerations:
• Goods already in transit before February 1 are exempt.
• The policy targets China’s dominance in supply chains, particularly in tech and manufacturing.
• Expect higher import costs and inflationary pressure as businesses adjust pricing.

What You Should Do:
• Reassess supply chains—Explore alternatives in Mexico (depending on tariffs), Vietnam, and India.
• Monitor trade policies—Tariff rates could increase further.
• Plan for cost increases—If you depend on Chinese imports, build pricing strategies accordingly.

Canada & Mexico: Temporary Reprieve, But Uncertainty Ahead
Unlike China, tariffs on Canada and Mexico were delayed until March 4, 2025, following a last-minute border security deal with the U.S.

Why the Delay?
• The U.S. is using tariffs as a bargaining chip in trade negotiations.
• The USMCA agreement is under review, with potential modifications on auto and agricultural trade.
• If no agreement is reached, a 25% tariff will hit Canadian and Mexican imports on March 4.

Business Impact:
• Uncertainty in trade deals—Businesses must stay agile and prepared for sudden policy shifts.
• Potential market disruptions—Tariffs on autos, food products, and industrial goods could drive up costs.

Next Steps: Monitor negotiations closely and develop contingency plans.

De Minimis Rule: Suspended, Not Eliminated (For Now)
One of the biggest updates is the suspension of the de minimis rule elimination, which was set to remove duty-free import exemptions for shipments under $800.

Current Status (as of February 7, 2025):
• De minimis transactions remain in place until further notice.
• E-commerce retailers and small importers continue to benefit from duty-free imports.
• The White House could revisit this policy, so businesses should stay alert.

Key Takeaway: If your business relies on small-value shipments from China, continue leveraging this exemption—but prepare for potential changes.

Retaliatory Actions: China, Mexico & Canada Fight Back
The U.S. is not the only country raising tariffs—trading partners are hitting back.

China’s Response (Effective February 10, 2025):
• 15% tariffs on coal and liquefied natural gas (LNG).
• 10% tariffs on crude oil, agricultural machinery, and pickup trucks.
• More tariffs likely coming in a multi-tiered retaliation strategy.

Mexico’s Response (March 4, 2025, or sooner):
• 25% retaliatory tariffs on U.S. goods—exact products still to be confirmed.
• Non-tariff barriers may also be used to slow imports.

Canada’s Response (Immediate Effect):
• Matching 25% tariffs on U.S. goods.
• Key targets: U.S. beer, wine, appliances, and sporting goods.
• More items could be added after March 4, 2025.

Take Action: Businesses exporting to these regions should prepare for price adjustments and possible disruptions.

How Businesses Can Prepare
• Monitor trade developments – Policy changes can happen overnight.
• Diversify supply chains – Reducing reliance on China, Canada, and Mexico could provide long-term stability.
• Watch currency markets – A strong U.S. dollar may offset some tariffs but could hurt U.S. exports.
• Plan for rising costs – Businesses must develop a pricing strategy to navigate increasing costs.
• Speak to a trade compliance expert.

Conclusion: 2025 Will Be a Wild Ride
Tariffs are back in full force, with China in the crosshairs, steel and aluminum imports facing a major shake-up, and U.S. allies negotiating last-minute deals.

Meanwhile, inflation, currency manipulation, and the potential for a universal 10% tariff create an unpredictable trade environment. The suspension of the de minimis rule elimination offers temporary relief, but future policy shifts remain a real risk.

What is next? Businesses that stay informed, remain flexible, and adapt their supply chains will emerge stronger.

The key to success in 2025: Agility, strategy, and proactive planning.

About the Author: Anthony De Filippis is co-CEO of CargoTrans, a leading freight forwarder and logistics service provider headquartered in Manhasset, NY. CargoTrans offers comprehensive domestic and international transportation solutions, including air and ocean freight, customs brokerage, and trade compliance management. The company serves diverse industries such as retail and consumer goods, industrial manufacturing, food and beverage, and cosmetics and chemical distribution. With a commitment to core values like authenticity, growth, and client care, CargoTrans leverages advanced technology, such as their Captain tracking system, to provide real-time visibility and streamline supply chain operations. CargoTrans is a member company of the NY Alliance.