Tariff Talk Thursday is Back!
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Tariff Talk Thursday is Back!
Visit our Events page for details or register here.
MARCH 2025
Trade uncertainty continues to influence global supply chains as businesses adjust sourcing and transportation strategies in response to a rapidly changing trade environment. In the wine and spirits sector, tariff concerns are creating additional pressure as companies evaluate sourcing, inventory, and production strategies to manage costs and mitigate exposure to potential increases.
Beyond trade policy, air cargo faced significant disruption following a fire at an electrical substation near Heathrow Airport that caused a major power outage and forced the airport to close on March 21, 2025. More than 1,300 flights were canceled or diverted, severely constraining airfreight capacity and disrupting cargo operations. Heathrow returned to normal operations within 24 hours, though the effects of the disruption continued as airlines worked through displaced aircraft, cargo, and passengers.
Meanwhile, the U.S. trucking industry continues its slow recovery, with demand remaining weak across both truckload and LTL shipments. While rates have shown some signs of improvement, ongoing economic and trade uncertainty continues to weigh on the freight market.
Customs trade professionals exhausted the phrase “I’ve never seen anything like this before” throughout March—until they saw the tariff schedule for the first week of April 2025. In March, the Trump administration followed through on its promise of tariffs, keeping importers, brokers, agencies, and software vendors on high alert, with turnaround times unlike anything seen before.
March began with a notable increase in the IEEPA (International Emergency Economic Powers Act) tariff on China, rising to 20% from the previous 10% rate that lasted only 30 days. On the same day, 25% tariffs on imports from Canada and Mexico took effect. Shortly after, USMCA-qualified goods were exempted from the additional tariffs. Then, on March 12, new Section 232 tariffs focused on steel and aluminum were introduced. Amid this flurry, the White House also launched a new investigation into copper.
The so-called “steel tariffs”—a global 25% levy—apply to steel and aluminum, covering everything from raw materials to finished goods that are wholly or partially made from these metals. Implementing these tariffs has not been without challenges, from suppliers to entry filings. Goods in transit became subject to new requirements, and those processing customs entries had to follow stringent tariff sequencing and reporting rules while software vendors worked around the clock to keep up.
The lessons learned in March have set the stage for the tariff rollout on April 2, or “Liberation Day,” as President Trump referred to it. This date is expected to usher in another wave of tariff actions, including updates involving IEEPA provisions for Canada and Mexico, a 25% tariff on imports from countries purchasing oil from Venezuela, reciprocal tariffs, and new automotive sector tariffs. A 25% tariff on imported automobiles is set to take effect April 3, while tariffs on certain automobile parts are expected to follow no later than May 3. More details on these measures can be found in our Compliance Exclusive.
In other news, this week, the USTR (U.S. Trade Representative) held hearings on proposed fees targeting Chinese-owned or Chinese-built freight vessels entering U.S. ports. The fees under consideration could reach up to $1 million per U.S. port call for Chinese vessel operators and up to $1.5 million per port call for operators of Chinese-built vessels. The Section 301 investigation, initiated under the Biden administration, focuses on China’s practices in the maritime, logistics, and shipbuilding sectors.
For questions, contact the Compliance team at compliance@oceanair.net.
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