President Trump's inauguration for his second term marked a significant shift in US trade policy, with the signing of the America First Trade Policy Memorandum and the announcement of new tariffs on various countries. These changes could have major implications for businesses operating across borders, especially those in industries that have enjoyed low or duty-free rates. Besides country-specific duties, the administration is considering higher tariffs on automobiles and automotive parts, which could put pressure on EU manufacturers.
The America First Trade Policy initiates a comprehensive review of existing US trade measures. This review encompasses the examination of de minimis thresholds, export controls, anti-dumping laws, and the potential establishment of a new External Revenue Service. Certain products that have previously been exempt from taxation, such as specific medicines, medical equipment, and other goods with low customs duties, may soon be affected.
A unified report on these topics, coordinated by the Secretary of Commerce, is expected by 1 April 2025. During the signing ceremony, Trump also hinted at imposing 25% tariffs on Canada and Mexico as early as 1 February.
The Memorandum also emphasises the importance of trade policy for national security and reducing dependence on other countries. It directs the US Trade Representative to identify and address unfair trade practices, initiate public consultations on renegotiating the United States-Mexico-Canada Agreement (USMCA), and review all existing trade agreements, including those with China and the WTO. This may lead to potential withdrawal from various trade deals.
The memorandum also mandates a review of anti-dumping and countervailing measures and assesses the risks of importing counterfeit products. While the memorandum does not create enforceable laws, it signals significant upcoming changes in tariffs, trade defence measures, export controls, and sanctions.
Key considerations for businesses
Businesses should be prepared for the upcoming tariffs and changes in trade policy and assess the impact on their operations and shareholder returns. They should also explore options to minimise the tariff impact, such as Duty Drawback, First Sale for Export, Free Trade Agreements, and more. By taking a coordinated and data-driven approach, businesses can navigate these challenges, maintain stability, and establish an effective governance and compliance framework.
PwC has a global network of experts in trade, tax, and supply chain, who can help you analyse the potential effects of the new trade policy, identify effective strategies to mitigate risks and seize opportunities, and align your trade, tax, and supply chain operations. We can help you:
- Assess the potential consequences of US Tariff Adjustments: We can help you analyse the potential effects of proposed changes to US tariffs on your business, considering their impact on China, Mexico, Canada, and other global markets. We can also help you monitor the developments and updates on the trade policy review and report.
- Strategies to minimise tariff impact: We can help you identify effective approaches to mitigate the impact of tariff changes, tailored to your specific supply chain and operational needs. We can also help you implement these strategies and ensure compliance with the relevant rules and regulations.
- Exploring additional effects and opportunities: We can help you examine the wider implications of tariff adjustments, including potential synergies with tax (e.g., transfer pricing) and supply chain teams, to uncover further opportunities for your business. We can also help you leverage our digital tools and platforms to enhance your data and analytics capabilities and support your decision-making.
- Use of advanced data analytics: We can help you gain visibility into trade flows, optimise product classification, and ensure compliance, leading to cost reductions and improved efficiency. Our Trade Activator service combines international trade and customs advice from our experts together with the latest technology. Using the power of advanced analytics across multiple data sources, we can assess your current position, in particular the impact of tariffs on your business.
US trade and tariffs: February update webinar
Tuesday, 4 February 2025
We invite you to our US trade and tariffs: February update webinar, which we will host online on 4 February at 3pm CET. This event will delve into the latest developments in US trade and tariffs under the incoming US administration. The session is designed to help businesses outside the US understand what to expect, navigate potential disruptions, and seize new opportunities.
To learn more about this webinar and/or to register for it, please visit our event page.
Contact us
Director, Pharma & Life Sciences – International Indirect Tax & Regulatory, PwC Switzerland
+41 58 792 93 08
