Tariff Update: What to Know Now That Trump Is Back in Office

With President Trump officially back in office, the road ahead for global supply chains became a little clearer this week - although much is yet to be understood. While the returning President's first day in office did not result in immediate "day one" tariffs against any nation, an official memorandum was released outlining measures the United States may take under existing laws to address unfair trade practices or barriers to U.S. commerce.

Of note is that the President also suggested on Monday that Mexico and Canada "could" face proposed 25% tariffs as early as February 1.

Other key directives from the memorandum include:

• Imposing new tariffs on nations with significant trade deficits and introducing reciprocal tariffs.
• Exploring new sector-specific or bilateral trade agreements.
• Revising Section 321 de minimis provisions.
• Considering the removal of Permanent Normal Trade Relations (PNTR) with China as well as enhancing Section 301 tariffs on China.
• Introducing new export restrictions targeting strategic adversaries.

Agency leaders are tasked with conducting several reviews, most of which must be completed by April 1, and will provide their recommendations to the President for potential actions.

The President has also directed all federal agencies to delay implementing new rules or regulations until they are reviewed and approved by newly appointed department or agency heads. This includes a thorough review of NPRMs concerning Section 321 de minimis entries.

The full memorandum can be accessed here.

Transmodal will provide additional updates on this important topic as new information becomes available. Visit www.transmodal.net/blog for more global shipping updates.