Months of talk about tariffs are about to become reality. This weekend, President Trump made official his plan to implement new tariffs this Tuesday. Canada and Mexico face tariffs of up to 25%, with China facing levies of an additional 10%. All three countries have voiced their opposition and plans for retaliatory measures. The impact on trade among the three N. American countries is yet to be seen, with the US having had free-trade agreements in place for decades. Trump...

The White House confirmed that President Trump will impose new tariffs starting Saturday, February 1. The tariffs include a 25% duty on certain imports from Canada and Mexico and a 10% tariff on specific Chinese goods. The tariffs could lead to higher prices for U.S. consumers and businesses on products such as electronics, toys, shoes, produce, lumber, and cars. Companies importing these goods must decide whether to absorb the costs, reducing profits, or pass them on to consumers. Mexico and Canada have...

Overview: The US dollar recorded lows for the month against many of the major currencies yesterday but has come back bid today. We had anticipated some consolidation ahead of the conclusion of the FOMC meeting tomorrow, and the dollar's downside momentum faded. Yet, today’s gains have been fueled by new tariff threats. In particular, Bessent, the new Treasury Secretary, said to be a moderate, reportedly was advocated increasing a universal tariff by 2.5% a month until reaching the levels President...

Now in office, President Trump has signed an executive order directing federal agencies to investigate unfair trade practices and currency policies, particularly concerning China, Canada, and Mexico. As of this writing, he hasn’t imposed tariffs, but he has indicated he will—as soon as February 1. Specifically, a 25% tariff on imports from Mexico and Canada. He also announced a new External Revenue department that will oversee the collection of duties from any countries subjected to future tariffs. Despite a recent ceasefire between...

By Erik Smithweiss | U.S. Customs and Border Protection (CBP) has recently issued two proposed amendments to the regulations governing the clearance of “de minimis” shipments.  Under Section 321 of the Tariff Act, good valued at $800 or less (and gifts under $100) per shipment may enter the U.S. without payment of customs duties. The first proposed amendment, titled ​“Entry of Low-Value Shipments” (ELVS), would establish a dual-track entry process for de minimis shipments.  This proposal would create an ​“enhanced” entry...

What happened?  On day one of his Administration, President Trump signed two Executive Orders (presidential directives to the executive branch, having the force of law) signaling a clear change in direction from the Biden Administration on global tax and trade policy. The first takes aim at the OECD’s two pillar project, referred to as the ‘global tax deal,’ and essentially nullifies the US’s agreement to the project. The second is a series of directions to implement ‘America First Trade Policy.’...

With President Trump officially back in office, the outlook for global supply chains has started to take shape—though many questions remain. While the President’s first day did not bring any immediate tariff announcements, an official memorandum (available to view here) has been issued by the White House, detailing potential actions the United States may take under existing laws to combat what are considered unfair trade practices and other barriers to U.S. commerce. The President has instructed agency leaders to review and submit...

In an unpredictable switch, e-commerce volumes have nosedived—and airfreight rates have followed. They’ve dropped by 40% since December. This is mostly led by a mix of retail surpluses and companies front-loading ahead of threatened US tariff changes. Also pushing rates down is intense competition between Chinese carriers on China-Europe routes. European airlines are struggling with strong inbound but weaker outbound volumes. And in the UK, while the currency exchange is increasing airfreight costs, a decrease in volumes from China is...