Measures to prepare for Donald Trump’s proposed or delayed tariffs can allow companies to take advantage of opportunities or reduce costs.
On February 1, 2025, Trump announced significant changes to U.S. tariff policies. These modifications impact international trade with Canada, Mexico and China.
Trump implemented these measures through executive orders under the International Emergency Economic Powers Act (IEEPA).
The executive orders are shown below:
Measures to prepare
The tariffs include 25% for Canada (with a 10% tariff rate for energy or energy resources) and Mexico, as well as an additional 10% for China. For the first two countries, the implementation was postponed by one month to meet Trump’s demands. In the case of China, the tariffs have already gone into effect.
Here are suggested actions for companies to better cope with the new tariffs, in cases where they come into effect:
- A careful review and restructuring of trade contracts.
- Diversify export markets.
- Analyze alternatives for the supply of inputs, parts and components.
- For certain cases, submit a justified request to exclude specific products from tariffs.
- To have high value-added information that allows us to understand the environment, the situation and the outlook in order to organize the best strategy.
Opportunities
Although in trade wars everyone involved loses, because they usually apply countermeasures, some companies or specific sectors can take advantage of opportunities.
In 2018, an investigation under Section 301 of the Trade Act of 1974 found that China engaged in practices such as forced technology transfer, cyber theft of intellectual property, and state-supported strategic acquisitions.
In response, the United States imposed tariffs on $370 billion worth of Chinese goods. Beijing reacted with levies on $110 billion in U.S. goods. Since then, both countries have implemented additional or adjustment measures in this trade war.
In particular, the impact on Mexico will depend on a possible agreement between Trump and Xi Jinping. In addition, it will influence whether the United States decides to reinstate the 25% tariff on Mexican products after a 30-day pause.