Resilinc Special Report

Tariff Impacts on Trade and Supply Chain Under the Trump Administration

President Donald Trump’s administration, entering its second term in 2025, has introduced new trade and tariff policies that could lead to shifts in global supply chains, impacting trade flows, production costs, and industry operations. These measures illustrate how tariffs impact trade and highlight the growing need for adaptability and resilience. Businesses worldwide are assessing the economic impact on supply chain performance as they navigate evolving trade dynamics and adapt to shifting regulatory landscapes. In this report, we examine these factors and provide a comprehensive analysis of these developments, offering insights into their long-term effects on supply chain strategies and global market stability.
Key Insights:
  • A new 25% tariff on imports from Canada and Mexico is set to impact industries like automotive, agriculture, and electronics, potentially increasing production costs by 12-15%. The tariffs are expected to take effect by early February 2025
  • A national energy emergency declared in January 2025 prioritizes U.S. oil and gas production, aiming to lower energy costs for manufacturers by 8-10% and increase domestic fuel reserves by 15% by year-end
  • The rollback of environmental protections and withdrawal from the Paris Agreement could lower compliance costs and energy prices for manufacturers but could expose supply chains to increased climate-related disruptions