Global CFS The latest round of tariffs on imports from China, Mexico, and Canada is causing concern across the logistics industry. These measures, enacted under the International Emergency Economic Powers Act (IEEPA), have broad implications for importers, freight forwarders, and supply chain professionals. While not unexpected, the abrupt implementation and retroactive aspects of these tariffs create significant financial and operational challenges.
What’s Changing?
As of March 4, 2025, the U.S. government has imposed a 25% tariff on most products from Mexico and Canada, with a 10% duty specifically on Canadian energy products. The most concerning shift comes from China, where a new executive order retroactively raises tariffs from 10% to 20% on goods that entered the U.S. after February 4. That means businesses must reconcile additional duty payments on imports they already cleared.
For importers managing steel and aluminum, new tariffs on derivative products under HTS Chapter 73 (steel) and HTS Chapter 76 (aluminum) will take effect on March 12, 2025. The U.S. will apply 200% duties on aluminum products tied to Russia, significantly impacting pricing and sourcing strategies.
These policies do more than add financial pressure—they disrupt supply chains, introduce compliance headaches, and require swift recalibration of sourcing and logistics strategies.
Industry Response & What Comes Next
Steve Panzarella, President of Global CFS, provides a pragmatic perspective:
“Trade policy shifts like these create new costs and operational burdens, but informed shippers will adapt. The key is planning ahead—understanding how tariff structures impact pricing, lead times, and landed costs to make smart supply chain decisions.”
Governments worldwide are already responding. Canada enacted counter-tariffs immediately, while China is targeting U.S. agricultural products in retaliation. These countermeasures will further disrupt pricing and availability in key industries.
What Importers & Shippers Should Do Now
- Audit your supply chain to determine exposure to the new tariffs.
- Reevaluate sourcing and inventory strategies to mitigate cost increases.
- Consider Foreign Trade Zones (FTZs) as an option to defer or reduce duty exposure.
- Stay informed—tariffs can shift with little notice, and compliance is crucial.
These new trade barriers require a proactive response. Global CFS, an FTZ, is here to provide customs exams, logistics support, and warehousing services to help businesses navigate these changes efficiently. Contact us today to discuss tailored strategies for your supply chain.
