On March, 2025, the U.S. government imposed a 25% tariff on imports from Mexico and Canada and raised tariffs on all Chinese imports from 10% to 20%. These tariffs are layered on top of existing duties on billions of dollars worth of goods. In response, China and Canada implemented retaliatory tariffs on American products, and Mexico is expected to announce their own countermeasures soon.
These trade policy shifts are already impacting global supply chains. Automobiles, consumer electronics, raw materials, and manufactured goods are all subject to these new tariffs, causing price increases and uncertainty across industries. According to Commerce Department data, the three affected countries accounted for over 40% of total U.S. imports in 2024, meaning businesses reliant on international sourcing will likely face higher costs and longer lead times.
How will these tariffs affect supply chains?
- Higher costs across multiple industries
- Cars, car parts, and electronics are among the most impacted goods, now facing tariffs between 20% and 25%.
- Steel and aluminum imports will also be affected, as a separate 25% tariff on these materials will take effect on March 12, 2025.
- Retaliatory measures from trade partners
- China has imposed a 15% tariff on American agricultural products, including chicken, wheat, corn, and cotton, while also restricting exports to certain U.S. companies.
- Canada announced tariffs on $20.7 billion worth of U.S. goods, including dairy, apparel, and paper products, with an additional $86.2 billion in tariffs planned for the next phase.
Companies relying on distributors and third-party suppliers may see tariff costs compounded at multiple stages before products reach the market.
How businesses can respond
These tariffs have introduced more volatility into an already uncertain economic environment, particularly for businesses that rely on outsourced manufacturing or multiple intermediaries. With tariffs being passed along the supply chain, companies that do not control their own production may face significant cost increases.
One way to manage this uncertainty is through direct supply chain control. Businesses that own their manufacturing, R&D, and quality assurance have more flexibility in pricing and inventory management. Instead of being forced to absorb external price hikes, they can adjust their production strategies to minimize cost impacts.
At ATMOSIScience, we manufacture our own products, holding 50+ patents worldwide, including 5 in the U.S. This means we are not dependent on third-party manufacturers or distributors and can maintain stable pricing, quality control, and reliable supply chains – even as tariffs disrupt the market.
What comes next?
Trade tensions will likely remain volatile in the coming months. While exemptions on some goods have been granted under the U.S.-Mexico-Canada Agreement (USMCA), tariffs on non-compliant goods remain in place, and additional measures could be introduced. Businesses that take proactive steps to secure their supply chains now will be in a stronger position as trade policies continue to shift.
As tariffs reshape global trade, the key question is: Is your supply chain built to withstand these changes, or are you at risk of rising costs beyond your control?
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