Following President Trump’s February 1, 2025 Executive Orders announcing new tariffs on imports from Mexico, Canada, and China to take effect on February 4, 2025, both Mexico and Canada negotiated a one-month delay for implementation of the new tariffs by agreeing to contribute personnel and funding to enhance border security and stem the flow of fentanyl across the United States’ northern and southern borders.

While the tariffs on China took effect on February 4, putting an additional 10% tariff on all imports from China, much less is certain about the future of U.S. trade relations. If the tariffs announced on Mexico and Canada take effect, a tariff of 25% will be applied on most imports from these countries. The U.S. tariffs against China have already resulted in counter-tariffs by China on U.S. goods.

Businesses engaged in foreign trade activities should be evaluating the impact both U.S. tariffs and potential counter-tariffs may have on their bottom line. There are strategies and structural changes to your supply chain which may lessen the tariff burden. Additionally, by understanding key contract terms and implementing contracting best practices, businesses can give themselves additional protection for rising tariff rates. Importers face the most pressing problem, but those further removed from the import transaction could face price increases or changes to supply of certain products.

Barley Snyder can assist with evaluating your commercial agreements and reviewing your supply chain to identify strategies to address any particular risks businesses may face. We are also able to help evaluate opportunities to mitigate the effects of new tariffs. If you need any assistance, please reach out attorney Abby Tucker or any member of Barley Snyder’s Transportation, Logistics and Trade Industry Group.