Breaking: U.S. Tariffs Impact Global Trade—What Freight Forwarders Need to Know

This is a live update from Team Starboard on the latest U.S. tariff changes and their impact on global trade. As new information emerges, we’ll continue updating this post with key developments, industry reactions, and what freight forwarders need to know to stay ahead.

The U.S. government has announced new tariffs on key imports, sparking concerns across supply chains. Freight forwarders and shippers must quickly adapt to shifting costs, potential delays, and changing trade policies. In this live blog, we’ll track the latest updates, analyze the impact on freight operations, and provide actionable insights to help logistics professionals navigate the uncertainty.

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Below, we'll be covering real-time updates and commentary on what you need to know to keep your freight operations moving efficiently.

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Updates from Friday, March 7, 2025

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Trump Suspends Some Tariffs on Canada and Mexico

In a reversal, President Trump signed an executive order delaying many of the newly imposed tariffs on imports from Canada and Mexico. The exemptions apply to goods covered under the U.S.-Mexico-Canada Agreement (USMCA), temporarily easing trade tensions after days of market volatility. ‍

What’s Changing?

• ‍Partial Suspension of Tariffs – Many USMCA-covered imports from Canada and Mexico are now exempt, including cars, air conditioners, and beef.‍
• Tariffs on Non-USMCA Goods Remain – About 50% of U.S. imports from Mexico and 62% from Canada may still face tariffs, including aluminum and select manufactured goods.‍
• Retaliation Paused – Canada will hold off on its planned second round of retaliatory tariffs on U.S. products. Mexico has not yet announced whether it will follow suit.‍
• Auto Tariff Delay – The planned 25% tariff on vehicle imports has been postponed until April 2.

‍Market Update:

The S&P 500 closed down 1.8% on Thursday, reflecting ongoing uncertainty around trade policy. Businesses are struggling to navigate shifting tariff rules, with auto manufacturers and retailers particularly affected. Freight forwarders should monitor policy updates closely, as future tariff decisions could impact pricing, customs processing times, and cross-border logistics.

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Updates from Tuesday, March 4, 2025

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U.S. Tariffs on Canada, Mexico, and China Take Effect

The U.S. has officially imposed tariffs as of today, March 4, escalating trade tensions with key partners:

Here's what you need to know: 

• 25% Tariffs on Canada & Mexico – Most imports now face a 25% tariff, with Canadian energy products taxed at 10%.
• Higher Tariffs on China – Duties on Chinese imports doubled from 10% to 20%.
• Retaliation from Canada & China – Canada imposed 25% tariffs on $30B of U.S. goods, with more to follow. China added 10-15% tariffs on U.S. agricultural products.
• Mexico’s Response Pending – Mexico plans to announce retaliatory tariffs on March 9.

Market & Economic Impact

Stock markets opened lower as investors reacted to the escalating trade tensions. The S&P 500 dropped 0.7% after a sharp decline on Monday, while European and Asian markets also saw losses. Major retailers, including Target, warned of rising costs and potential price increases due to new import duties. More updates will follow as trade negotiations and retaliatory measures unfold.

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Updates from Tuesday, February 25, 2025

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U.S. Tariffs on Canada & Mexico Set to Take Effect March 4

The 30-day suspension on 25% tariffs for Canadian and Mexican imports is set to expire on March 4, as the White House has confirmed it will move forward with implementation. The move is expected to increase costs for cross-border freight and raise tensions ahead of potential retaliatory actions from both countries.

What’s Changing?

• ‍Canada & Mexico Tariffs – The 25% tariff on Canadian and Mexican goods will take effect next week, impacting automotive parts, industrial equipment, and key consumer products.‍
• Steel & Aluminum Tariffs – U.S. tariffs on foreign steel and aluminum imports remain in place, increasing raw material costs for manufacturers and logistics firms.‍
• More Tariffs on the Horizon – The White House has hinted at potential duties on auto imports, pharmaceuticals, and semiconductor components from the EU, Japan, and India.
• 25% Tariff on Mexico – The tax applies to most imports, with key industries including automotive parts, industrial equipment, and consumer goods expected to be impacted.
• Tariffs on Canadian Goods – Most imports from Canada will be subject to a 25% tariff, except for energy products like oil and electricity, which will be taxed at 10%.
  

Industry & Economic Impact

• ‍Uncertainty for Businesses – Walmart and other major retailers have expressed concerns about supply chain disruptions and rising costs.‍
• Consumer Confidence Drops – The University of Michigan’s Consumer Sentiment Index declined 10% this month, citing fears of inflation driven by new tariffs.‍
• Ongoing Negotiations – Mexican President Claudia Sheinbaum stated that discussions are ongoing, with a goal of reaching agreements before the March 4 deadline.
  

Logistics providers should prepare for potential supply chain bottlenecks, increased customs processing times, and fluctuating freight rates as trade policies shift. More updates are expected as trade negotiations evolve.

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Updates from Thursday, February 13, 2025

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Trump Orders Global Tariff Review, Expanding Trade Policy Changes

President Trump has officially signed an executive order directing U.S. trade officials to calculate new tariff levels to match foreign trade barriers. The order expands upon last week’s 10% across-the-board tariff on imports, adding a new layer of potential duties based on foreign countries’ existing tariffs, subsidies, and tax policies.

What’s Changing? 

• Broader Tariff Scope – Unlike previous actions, this order applies to all major trading partners, including the EU, Japan, and India.
• Negotiation Window – New tariffs won’t take effect immediately, allowing time for bilateral trade talks.
• Cost & Supply Chain Volatility – Experts warn of higher import costs, sourcing shifts, and freight rate fluctuations.

The administration argues that these tariffs will support U.S. manufacturing and level the playing field for exporters. However, freight forwarders should prepare for shifting trade routes, increased customs complexity, and potential port congestion as businesses adjust sourcing strategies.

More details will emerge as the Commerce Department reviews tariff adjustments in the coming weeks.

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Reciprocal Tariffs Could Shake Up Global Freight

President Trump announced on Feb. 13 that he will sign an order imposing reciprocal tariffs—matching the import taxes other countries charge on U.S. goods. While details are still unclear, the move signals a significant escalation in global trade tensions, putting freight forwarders in the crosshairs of shifting costs, supply chain disruptions, and potential trade wars.

What to Know:

• Tariffs on China: An additional 10% tariff on Chinese imports due to its role in fentanyl production.

• Tariffs on Canada & Mexico: Currently suspended for 30 days but expected to take effect in March.

• Steel & Aluminum Tariffs: Exemptions from Trump’s 2018 tariffs have been removed, increasing costs on raw materials.

• Potential New Tariffs: Trump has hinted at duties on computer chips, pharmaceuticals, and other key imports.‍

These policies come as the European Union, Canada, and Mexico prepare retaliatory measures, further complicating cross-border logistics. China has already imposed tariffs on U.S. energy, agricultural machinery, and large-engine autos while launching an antitrust probe into Google. More updates are expected following a scheduled press conference for 1pm ET. Read more here.

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Updates from Tuesday, February 4, 2025

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China Retaliates as U.S. Tariffs Take Effect

In response to the U.S. imposing 10% tariffs on Chinese imports, China has announced new tariffs and export restrictions set to take effect on February 10.

China’s new measures include:

• 15% tariffs on certain coal and liquefied natural gas

• 10% tariffs on crude oil, agricultural machinery, large-displacement cars, and pickup trucks

• Export restrictions on tungsten and other critical metals, affecting industrial and defense applications

Additionally, China has added biotech firm Illumina and PVH Group (owner of Calvin Klein and Tommy Hilfiger) to its Unreliable Entities List, limiting their operations in the country.

For freight forwarders, this escalation adds uncertainty to U.S.-China trade, particularly in energy, auto, and manufacturing sectors. Further supply chain disruptions and cost increases may follow. More updates are expected as the White House has signaled that Trump and Xi could hold a call in the coming days.

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Updates from Monday, February 3, 2025

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Global Markets React to Tariff Uncertainty

Despite the 30-day pause on U.S. tariffs for Canada and Mexico, global markets remain volatile as trade tensions persist. Germany’s DAX fell 1.5%, France’s CAC 40 dropped 1.3%, and the UK’s FTSE 100 declined 1%, marking its steepest loss since December. In the U.S., Nasdaq futures are down by 2.35% while S&P 500 futures have fallen by 1.8%. These declines reflect ongoing concerns about potential new tariffs on China and Europe in the coming weeks.

What this means for freight forwarders:

• Market volatility may impact freight demand and pricing in the short term.

• Uncertainty remains for shipments to China and Europe, where new tariffs could still be introduced.

• Supply chain disruptions are still possible, as businesses reevaluate trade routes and procurement strategies.

The situation is evolving, and more tariff conversations expected as the week progresses.

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U.S. Tariffs on Canada Paused for 30 Days After Border Security Deal

Following a call between President Trump and Prime Minister Trudeau, the U.S. has paused proposed tariffs on Canadian imports for 30 days. In exchange, Canada is committing $1.3 billion to border security, deploying 10,000 personnel, and launching a Canada-U.S. Joint Strike Force to combat organized crime and fentanyl trafficking.

This delay eases immediate concerns, but long-term trade policies remain uncertain. Freight forwarders should continue monitoring developments as negotiations unfold.

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Canada Retaliates with Tariffs; U.S.-Canada Talks Set for 3 PM ET

The Canadian government has announced 25% retaliatory tariffs on select U.S. imports, effective February 4, 2025, in response to the latest U.S. trade measures. Affected goods include agricultural products, steel, aluminum, and consumer goods. Full details on the targeted items can be found in the official government release here.

Meanwhile, the New York Times reports that President Trump and Prime Minister Trudeau are scheduled to speak at 3 PM ET today to discuss the escalating trade tensions. More developments are expected following the call.

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U.S. Tariffs on Mexican Imports Delayed for 30 Days

President Trump has announced a one-month pause on the planned 25% tariffs on Mexican imports, following an agreement with Mexico to deploy 10,000 National Guard troops to enhance border security and combat drug trafficking.

For freight forwarders, this provides a temporary reprieve, but uncertainty remains high. Trade policy shifts can happen fast, and supply chain disruptions are still a possibility. Read more here.

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CPKC Braces for Cross-Border Trade Disruptions

The imposed 25% tariffs on imports from Canada are causing disruptions for Canadian Pacific Kansas City (CPKC), the only freight railroad linking all three countries. The tariff uncertainty has led to logistical delays and an 8% drop in CPKC’s stock price, with analysts warning of broader supply chain impacts.

Freight forwarders relying on cross-border rail should expect delays, higher costs, and possible rate adjustments. Monitoring policy changes and securing alternative routes will be key to minimizing disruption. More information can be found here.

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