2025 Trade Shake-Up: What Global Shippers Need to Know Now

Over the last several weeks and in just the past few days, global shippers have faced an intensifying wave of tariff-driven disruption, fueled by the U.S. government’s fast-evolving trade agenda. A temporary agreement with China has provided only short-term relief, with key provisions set to expire August 12. At the same time, the U.S. has confirmed sweeping country-specific tariffs, effective August 7, impacting nearly 70 nations, including Brazil, India, Bangladesh, Canada, Switzerland, and multiple Southeast Asian economies. 

Though a handful of countries negotiated last-minute deals to avoid the steepest penalties, most will see new duties ranging from 10% to 41%, with key sectors like apparel, electronics, pharmaceuticals, and metals already feeling the effects. For many importers and exporters, the rules are shifting faster than supply chains can adapt, which means raising costs, tightening timelines, and complicating sourcing.  

So, what are some of the other key trade and tariff developments making waves? 

U.S.-India tariffs 

A 25% tariff on Indian imports took effect on August 1, imposing duties across most goods (the 25% is in addition to the normal duty (MFN) rate) unless a specific exemption applies. These tariffs are in conjunction with an unspecified penalty linked to India’s purchases of Russian military and energy products.

India’s exports to the U.S. in 2024 were worth approximately $87 billion. 

U.S.–Mexico Extension 

While many countries face tariff increases, Mexico secured a 90-day extension under its existing tariff framework. The extension maintains 25% duties on general goods and up to 50% on select categories like metals and vehicles. The delay gives time for further negotiation, but also leaves shippers operating under temporary conditions. 

Other Key Global Trade Shifts 

• Ahead of a potential year-end India–EU Free Trade Agreement, India is reassessing reciprocal tariffs on EU and Chinese technology exports. Additionally, India’s Ministry of Electronics and IT is lobbying for a tariff shield to protect India’s nascent electronics sector from U.S. import duties which signals increasingly complex trade and regulatory dynamics. 

• ASEAN states are finalizing upgraded agreements under “CAFTA 3.0” with China, Australia, New Zealand, and India, and moving toward expanded digital economy frameworks under RCEP and CPTPP. These developments aim to strengthen intraregional trade and reduce reliance on U.S.–China corridors. 

• Diversification efforts remain in full swing as firms shift production to Southeast Asia, Eastern Europe, and Mexico. Meanwhile, reshoring momentum is rising in the U.S. due to trade uncertainty and supply chain risk. 

• President Trump has renewed threats of additional tariffs on BRICS nations, including a 10% surcharge on imports from countries aligned with the bloc. Brazil is also facing a threatened 50% tariff tied to political disputes, while BRICS leaders have publicly condemned U.S. trade measures. 

Considerations Moving Forward 

With new tariffs and trade rules coming into play, many shippers are reworking their supply chain strategies to stay ahead. Whether it’s finding new sourcing options, adjusting routes, or tightening up compliance, the goal is the same: keep things moving and avoid unnecessary costs. One key area of focus is diversifying sourcing strategies, expanding into alternative manufacturing regions (e.g. U.S. importers utilizing Mexico to leverage USMCA benefits) or nearshoring to reduce lead times and duty exposure.  

Shippers can also reevaluate routing through strategic hubs to optimize customs duties, while keeping a close eye on the attention to origin rules and compliance standards. Additionally, tools like Free Trade Zones (FTZs) and bonded warehouses offer flexibility by allowing goods to be stored or processed without triggering immediate tariffs, providing tariff relief amid regulatory shifts.