Donald Trump’s latest tariff maneuver sent shockwaves through the logistics and trade sectors last week, as he imposed a 25% tariff on all US imports from Mexico and Canada—only to partially walk it back days later.
The sudden decision initially applied across the board but was quickly softened with a one-month reprieve for automotive goods covered under the United States-Mexico-Canada Agreement (USMCA). By Thursday, that suspension was extended to all imports under the USMCA, leaving businesses scrambling to adjust.
For industry professionals, the real headache lies in what remains outside of this exemption. Roughly 50% of Canadian imports and 38% of Mexican imports fall under USMCA protections, covering key sectors such as automotive, agriculture, and consumer electronics. However, that still leaves nearly $1 billion in daily imports now subject to the full 25% tariff. This includes high-value goods like smartphones, medical equipment, and computers, which previously enjoyed low or no tariffs.
Adding to the turmoil, importers had already accelerated shipments in February, anticipating trade disruptions. This led to bottlenecks at border crossings, overwhelming customs facilities and trucking networks. The on-again, off-again implementation only compounded the problem, disrupting freight flows and leaving logistics professionals navigating a landscape of uncertainty.
Trump’s use of tariffs as a negotiating tool is nothing new, but the latest episode underscores how trade policy under his administration operates in a constant state of flux. The original pause in February was tied to Mexico and Canada making border security commitments, a move that temporarily delayed the tariff escalation. This time, the apparent reasoning behind the last-minute reprieve was reported pledges from auto manufacturers to shift some production back to the US.
Meanwhile, Trump’s broader trade strategy continues to ripple through global supply chains. The presence of Chinese investments in the Panama Canal recently triggered the sale of Hutchinson Ports, a key operator in the region. At the same time, the US Trade Representative’s proposed port call fee on Chinese-made vessels has already pressured CMA CGM into pledging $20 billion in US investments, including potential domestic shipbuilding projects.
Looking ahead, businesses are bracing for more trade shifts. March 24 marks a critical deadline for the USTR’s hearing on port fees, while April 1 will bring the release of agency reports on the wider implications of Trump’s “America First” trade policy. These decisions will shape tariffs, supply chain realignments, and logistics strategies in the months to come. For now, importers, freight forwarders, and project logistics specialists are left navigating a complex and unpredictable playing field.
