Changes ahead for U.S. trade tariffs
As 2025 unfolds, the global marketplace is experiencing a dynamic shift in U.S. trade policy. Businesses and consumers should be aware of potential tariff adjustments that could impact international commerce, the first of which were implemented on February 4, 2025, on China.
Retaliatory tariffs have been implemented by China in response. Other proposed U.S. tariffs have been paused for a month.
For more details on the recent tariffs, visit the government & regulations page of this report.
The U.S. president has a range of trade law enforcement tools at his disposal, each with different implications for the economy.
Tools the United States could use to change trade policy in 2025
| Tool | Description | What to Expect |
|---|---|---|
| IEEPA | Presidential regulation of imports during a national emergency |
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| Section 122 | Tariff on imports from specific countries (max 150 days) |
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| Section 232 | Tariffs on specific commodities if imports threaten national security |
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| Section 301 | Tariffs on specific countries for trade agreement violations |
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| Section 338 | Up to 50% tariffs if a country’s actions are unreasonable or discriminatory |
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| USMCA | Trade agreement review |
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The International Emergency Economic Powers Act (IEEPA) provides the U.S. president with broad authority to regulate imports during a national emergency. The administration invoked this authority to “address the flow of illicit drugs across our [borders]” and is using tariffs as a means to accomplish this. As seen in the announcement on February 2, 2025, tariffs implemented through IEEPA have immediate effect.
Expect the current U.S. administration to continue to leverage presidential authority in ways that have not been used previously or are long dormant. Some tools, such as Section 122 of the Trade Act of 1974, could allow the U.S. president to impose short-term tariffs on specific countries, while others, like Section 301, target nations accused of violating trade agreements or engaging in unfair trade practices. These measures, along with Section 232 tariffs, which were used in 2018 to impose duties on steel and aluminum, are all mechanisms that could reshape global trade relationships in the coming months.
Another avenue for tariff enforcement is Section 338 of the Tariff Act of 1930, a lesser known but still relevant tool that gives the U.S. president the authority to impose significant tariffs on foreign countries engaging in discriminatory practices. While it hasn’t been used since before 1950, its potential revival could further alter the trade landscape.
Beyond these executive powers, the U.S. is also preparing for the scheduled review of the United States-Mexico-Canada Agreement (USMCA), a trade deal that governs commerce between North American countries. Unlike unilateral tariff measures, any adjustments to the USMCA require congressional approval, meaning the process will be subject to political negotiations.
With so many options at the administration’s disposal, businesses and consumers alike should brace for potential shifts in trade policy that impact all major trading partners for the United States. The introduction of new tariffs could lead to increased duty payments for imported goods, supply chain disruptions, and adjustments in pricing strategies. Industries reliant on global trade will need to stay vigilant, assess risks, and develop strategies to adapt to the changing economic environment.
By staying informed and proactive, businesses can better navigate the evolving trade landscape and mitigate potential challenges. Check out our free webinar, “Navigating the New Tariff Landscape.” We’ll unpack the latest developments in U.S. trade policy under the new administration. This session will also provide valuable insights on the impact to global supply chains and offer actionable strategies you should consider.
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