Sourcing Spotlight: Trump Tariffs now in action: Impacts on Economy and Business

This newsletter comes to you live from the TITAN Cancún Mastermind Event, an incredible gathering of e-commerce sellers, including brands scaling up to eight figures. Not a bad place to work hey?!

So, what am I here to present? It’s all about the Trump Tariffs. I’ve just delivered a powerhouse session packed with actionable insights for small businesses. From strategies to minimise profit impact by negotiating with suppliers to the pros and cons of using DDP, plus the latest updates and what we might expect next—here’s the full breakdown…

s part of the latest tariff adjustments, several significant changes are set to take effect in 2025, impacting imports from key trading partners:

• 25% tariffs on imports from Mexico – Initially set to begin immediately, these tariffs have been suspended until 2nd April. However, certain product categories may be exempt under the US-Mexico-Canada Agreement (USMCA).

• 25% tariffs on most Canadian goods – Also facing a one-month suspension until 2nd April, with some exclusions possible under the USMCA.

• 10% tariffs on Canadian energy products – Covering oil and electricity, these tariffs are scheduled to take effect from 4th March 2025.

• 20% blanket tariffs on Chinese imports – Effective 4th March 2025, these will be applied on top of existing product-specific duties, further increasing costs for importers.

• 25% product-specific tariffs on steel and aluminium – Coming into force 12th March, these apply worldwide with the goal of eliminating all country-specific exemptions and alternative trade agreements. Combined with the 20% blanket tariff, this results in a total duty of 45% on affected steel and aluminium imports.

• Elimination of the de minimis exemption – Previously, goods valued under $800 could enter duty-free. This change removes that exemption, meaning all imports will now be subject to duties regardless of value.

In April, we will be receiving more information on reciprocal and VAT tariffs that could impact a lot of countries worldwide.

The Trump administration’s latest tariffs on steel, aluminium, and automotive imports are sending shockwaves through global trade, with major repercussions for Canada, Mexico, and China. Steel and aluminium imports now face a 25% tariff WORLDWIDE. Meanwhile, China has retaliated with tariffs of up to 100% on Canadian agricultural products. The U.S. automotive industry is bracing for higher costs, disrupted supply chains, and potential production shifts, with automakers exploring strategies like nearshoring, alternative shipping routes, and pricing adjustments to offset the impact. With vehicle prices expected to rise significantly and economic uncertainty looming, the road ahead looks challenging. Read on to see how automakers are adapting and what this means for consumers.

The recent implementation of U.S. tariffs is already reshaping economic conditions, impacting inflation, trade relations, and business confidence. With increased costs on imports from Canada, Mexico, and China, consumers may see rising prices, while retaliatory tariffs from key trade partners add pressure on U.S. exports. The manufacturing sector, particularly the auto industry, faces significant challenges due to supply chain disruptions. Meanwhile, small businesses must adapt by diversifying suppliers, improving efficiency, and expanding into local markets to remain resilient. As economic uncertainty grows, understanding these shifts is crucial. Read on to explore the full impact and strategies for navigating this evolving landscape.

Delivered Duty Paid (DDP) can be a powerful tool for importers looking to simplify logistics and reduce customs-related stress. By shifting responsibility for shipping, duties, and taxes to the seller, DDP offers convenience, cost predictability, and reduced compliance risks. However, it also comes with challenges, including potential supplier misuse, customs delays, and higher costs built into the product price. Understanding the differences between DDP and DDU, as well as strategies to mitigate risks, is crucial for making informed decisions.

Is DDP the right choice for your business? Learn more about the advantages, challenges, and key questions to ask your freight forwarder in our full breakdown. Read on to explore your best options.

That’s a heavy trump tariff wrap for this weeks newsletter. We spoke about this all live at Cancun with these lovely people!

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