Trade tensions rise as US imposes new tariffs on China

Fresh US tariffs on Chinese goods have escalated trade tensions, with China swiftly responding through retaliatory measures. While negotiations secured a temporary pause on tariffs for Canadian and Mexican imports, the additional duties on Chinese goods from 4 February have already introduced new complexities for global supply chains.

A last-minute agreement has delayed US tariffs on Canadian and Mexican imports by 30 days, offering a short-term reprieve for industries reliant on cross-border trade. Key sectors, including automotive components, electronics, and pharmaceuticals, benefit from this delay, though uncertainty remains over long-term agreements.

In exchange for the suspension, Canada has committed to stricter border enforcement through enhanced personnel and surveillance technology. Mexico has deployed additional security forces to strengthen border control efforts. These concessions have provided breathing room for negotiations, but unresolved issues could see tariffs reinstated by March, keeping shippers on high alert.

The US administration has imposed a further 10% tariff on Chinese imports, prompting China to retaliate with tariffs of up to 15% on select US goods and restrictions on critical exports such as solar cell technology. While these actions appear measured, they contribute to an increasingly unstable trade landscape, pushing businesses to rethink sourcing strategies and logistics solutions.

Beyond tariffs, the US has also moved to tighten regulations on eCommerce imports. The suspension of the de minimis exemption for goods valued under $800, as soon as adequate systems are in place to fully and expediently process and collect tariff revenue, threatens to disrupt cross-border air cargo volumes. Additionally, new customs regulations will increase filing requirements, adding complexity for online retailers and logistics providers.

Despite heightened tensions, industry leaders remain cautiously optimistic about the potential for diplomatic resolutions. However, businesses must prioritise agility to stay ahead of evolving policies and regulatory shifts. The ability to adapt sourcing, logistics, and compliance strategies will be critical in mitigating risks and seizing new opportunities.

Stay ahead with PSP Worldwide’s trade solutions

As trade barriers evolve and supply chains face new challenges, proactive planning is more essential than ever. PSP Worldwide helps businesses navigate regulatory changes, mitigate tariff impacts, and maintain resilience in a shifting trade environment.

Whether adjusting sourcing strategies, ensuring compliance with new trade regulations, or optimising supply chain efficiency, our expert solutions keep you competitive.

EMAIL Colin Redman, Managing Director, today to safeguard your supply chain and position your business for success in 2025 and beyond.