Trade Regulation Impact On Supply Chain

Global supply chains are in the midst of major turmoil, driven by an intensifying trade tension and a new wave of tariffs. On April 2nd, 2025, the U.S. Administration announced a significant shift in U.S. trade policy, introducing what he termed the "Liberation Day" tariffs.¹ This includes a universal tariff of 10% on all imports from most countries worldwide, a reciprocal tariff that varies by country based on the U.S. trade deficit with each, and de minimis threshold adjustments which eliminate the $800 duty-free threshold for imports.²

On April 9, the U.S. administration announced a 90-day suspension³ of country-specific reciprocal tariffs for all trade partners except China—less than 24 hours after they were implemented. China, however, now faces a tariff rate of 125% (145%⁴ including fentanyl-related policies), up from the 84% rate that was originally planned.