US tariff increases during Trump second presidency rose to 27%, the highest ever level over a century. The average tariff rate previously has been 2.5% till January 2025. This enactment of series of steep tariffs instantly made the global and share market to go unstable and created a havoc like situation globally. The steep increase impacted all the good imported into United States. Soon after a decision was made to suspend the tariff increase for 90 days due to reciprocal tariff implemented by the trade partners expect China. Finally, after rollbacks as of June 1, 2025, the average effective tariff rate is 15.1% 

Major impacted country was China with unexpected increase in tariffs on Chinese imports to 145%. That led to China imposing $125 tariff on US goods. To counter tackle drug trafficking and illegal immigration 25% tariffs were imposed on Canada and Mexico.  

April 2, 2025, was called “Liberation Day” by announcing a minimum 10% tariff on all US imports starting April 5, 2025, and subsequently higher tariffs on imports from 57 countries. These were named as “reciprocal tariffs” which resulted in the stock market to crash due to retaliation from partners. A blow out to crude oil resulted in closing around $60 per barrel, the lowest since 2021. Asia, Europe and Africa experienced the greatest decrease in stock market. The implementation of tariffs led to reduced GDP growth forecasts by both the Federal Reserve and the OECD, while also fueling growing concerns about a potential recession. 

Following May, US finally reached deal call outs while negotiating with China and UK. Irrespective of various negotiations the tariff would remain 10% baseline for all countries was declared by Trump. On May 12, the US and China agreed to a temporary deal. The US would cut tariffs on Chinese products to 30% and China would cut tariffs on American products to 10%. 

Navigating the tariff wave: 

Companies need to be vigilant and take preventive measures for uncertain times and forward think with this incident and previous tariff changes. Though there wouldn’t be a one-way approach but as tariffs settlements are put in place, it would be important to implement measures. 

Restructure your supply chain 

Businesses should introspect and re-evaluate the enhanced supply chain design processes by diversification of suppliers, nearshoring and reshoring, creating strategic partnerships and invest in advanced technology integration to enchase visibility across the entire network 

Future-proofing supply chains 

Companies need to emphasize agility and adaptability by developing supply chains capable of quickly responding to change—whether by relocating production, altering suppliers, or restructuring logistics networks.  

Contact us today to future-proof your supply chain!