Trump’s 2025 Tariffs: Key Changes & Business Impact

A look at Trump’s 2025 tariffs in Mexico, Canada & China. Learn what’s changing, why, and how businesses can navigate the updates. Follow us Bethany 🌎 Gabbett for all of the latest news and insights.

At the beginning of 2025, President Donald Trump introduced a series of tariffs aimed at Mexico, Canada, and China. These new taxes on imported goods have shaken up U.S. trade policy, sparking reactions across the world and affecting businesses, consumer prices, and international relations.

Let’s break down what’s happening, why it’s happening, and what it means for the future.

What Are Tariffs and Why Do They Matter?

A tariff is basically a tax on products that come into the country from abroad. Governments use tariffs for a few key reasons:

• To Make Money – Tariffs have historically been a way for governments to raise funds.
• To Protect Local Businesses – When foreign products cost more due to tariffs, people are more likely to buy American-made goods.
• To Influence Trade – Tariffs can be used as leverage in negotiations or as punishment for unfair trade practices.

For decades, the U.S. has gone back and forth on tariffs. In the 1800s and early 1900s, tariffs were a major source of revenue and a way to protect American industries. Later, as global trade expanded, the U.S. started cutting tariffs to encourage more international business. But every so often, tariffs make a comeback—usually in response to economic or political issues.

Biden’s Tariffs (2020–2024): The Trade War Didn’t Start in 2025

Before Trump’s 2025 tariffs, U.S. businesses and consumers were already feeling the effects of tariffs put in place under President Joe Biden. While some expected Biden to roll back Trump’s earlier trade policies, his administration kept many of them in place and even introduced new ones.

Here are a few key moves from Biden’s presidency:

• China Tariffs Stayed – Biden kept most of Trump’s 2018-2019 tariffs on China, arguing that they were necessary to push China toward trade reforms and to protect American jobs.
• Steel & Aluminum Adjustments – While Biden modified some of Trump’s tariffs, especially for European allies, he kept restrictions in place to protect American metal industries.
• Solar Panel Tariffs – His administration extended tariffs on solar panels, particularly targeting Chinese manufacturers, to boost domestic clean energy production.
• Semiconductor Restrictions – Instead of tariffs, Biden blocked exports of advanced chips and semiconductor technology to China, aiming to slow their tech growth.
• Sanctions on Russia – Following Russia’s invasion of Ukraine, the U.S. imposed tariffs on Russian goods, including metals and energy products.

By the time Trump announced his 2025 tariffs, businesses were already adjusting to higher costs and supply chain disruptions from previous trade policies.

Trump’s 2025 Tariffs: What’s New?

On February 1, 2025, President Trump signed an executive order putting new tariffs in place, set to take effect on February 4, 2025. Here’s the breakdown:

• Mexico & Canada – A 25% tariff on all imports, with a 10% tariff on Canadian energy products.
• China – A 10% tariff on all Chinese imports, meant to address trade imbalances and combat illegal drug imports (particularly fentanyl).
• Steel & Aluminum – On February 9, 2025, Trump added a 25% tariff on all steel and aluminum imports from every country, including Canada and Mexico. This went into effect on February 10, 2025.

He also hinted at more tariffs on countries that place high duties on U.S. goods, saying these “reciprocal tariffs” could take effect immediately after being announced.

Why Did Trump Do This?

The Trump administration gave a few key reasons for these tariffs:

• Border Security & Immigration – The U.S. wanted Mexico and Canada to crack down on illegal immigration and drug trafficking.
• Drug Crisis & Fentanyl – The administration blamed Mexico, Canada, and China for not doing enough to stop the flow of fentanyl into the U.S., which has led to a rise in overdose deaths.
• Trade Imbalances – The U.S. has long accused China of unfair trade practices, including intellectual property theft and manipulating currency to make their exports cheaper.

How Did Other Countries React?

Mexico – President Claudia Sheinbaum called the tariffs a violation of the USMCA trade agreement. After negotiations, Mexico agreed to increase border security, leading to a temporary delay in full tariff enforcement.

Canada – Prime Minister Justin Trudeau opposed the tariffs, warning they would hurt both economies. Canada later agreed to work with the U.S. on border security and drug enforcement, which led to a temporary suspension of some tariffs.

China – The Chinese government condemned the tariffs, calling them a violation of WTO rules. China retaliated on February 10, 2025, with 10% and 15% tariffs on U.S. goods, including liquefied natural gas, coal, crude oil, and farm equipment. China also blacklisted U.S. brands and restricted exports of rare earth metals crucial for defense and clean energy industries.

The De Minimis Exemption Drama

The de minimis rule allows packages under $800 to enter the U.S. duty-free.

• Trump originally removed this exemption for Chinese imports on February 4, 2025, forcing importers to pay fees and file formal paperwork for low-cost shipments.
• This led to chaos, with shipping companies and e-commerce retailers scrambling to adjust.
• On February 7, 2025, Trump reversed course and temporarily reinstated the de minimis exemption, meaning packages under $800 from China are once again duty-free.
• The exemption will stay in place until a new system is set up to collect tariff revenue efficiently.

This decision benefits Chinese e-commerce platforms like Shein and Temu, which rely on cheap shipping to the U.S. But once the new system is in place, the exemption is expected to disappear again.

Final Thoughts

Navigating the complexities of international trade regulations, tariffs, and supply chain disruptions can be challenging for businesses. Staying compliant while minimizing costs requires expert guidance and strategic planning.

At Southern Star Navigation, we specialize in helping businesses adapt to changing trade policies, ensuring smooth cross-border operations and compliance with evolving tariff regulations. Whether you’re looking for efficient logistics solutions, trade advisory services, or customs brokerage support, our experienced team is here to assist.

📞 Call us at 833-782-7628 or check out our website https://southernstarnavigation.com to learn more about how we can help you safeguard your supply chain and stay ahead of the ever-changing global trade landscape.