In early 2025, the reimplementation of broad-based tariffs under the Trump administration
catalyzed a structural shock to global trade. While the 2018–2020 trade wars foreshadowed
the vulnerabilities of global sourcing, the 2025 tariffs have amplified them at a time of
unprecedented supply chain fragility.
The U.S. announced a sweeping reinstatement and expansion of tariffs focused on imports
from China and select manufacturing economies. These include:
25% tariffs on electric vehicles and EV parts
18–30% tariffs on semiconductors, solar panels, and clean tech equipment
15–20% tariffs on critical minerals (e.g., lithium, cobalt)
10–15% duties on general consumer goods, electronics, and machinery
(Source: CNBC, 2025; GEP, 2025)
Retaliatory measures were swiftly imposed by China, the EU, and Mexico, targeting U.S.
agricultural exports, aerospace parts, and advanced electronics. As a result, global supply
flows have been destabilized across sectors.
China’s countermeasures alone are estimated to impact over $45 billion in U.S. exports
(QIMA, 2025), while EU responses have raised tariffs on select American industrial goods by
up to 22%.
U.S. imports from China dropped 9.4% YoY in Q1 2025 (Richmond Fed, 2025)
U.S.–EU bilateral trade in tariffed goods fell 6.2% (Maersk, 2025)
Global ocean freight spot rates increased 18% between January and Marc
Compared to the previous Trump-era tariffs:
2025 tariffs target more advanced sectors, including clean tech and critical materials,
reflecting new geopolitical priorities
Retaliations are broader, affecting higher-value exports
Businesses have less buffer, due to already stretched supply chains post-COVID and
inflationary pressures
As Forbes (2025) notes, “The 2025 tariffs are less about trade imbalance and more about
reshaping the global value chain—and procurement is at the epicenter of this realignment.”
Tariff Regime Overview
A Global Tariff Shock:
What’s Changed in 2025
The 2025 tariffs are less about
trade imbalance and more about
reshaping the global value chain
—and procurement is at the
epicenter of this realignment
“
FORBES (2025)
Affected Countries and Trade Partners
Trade Volume Disruptions
Historical Context vs. 2018–2020
Procurement Is on the Line: How Tariffs Are Exposing Strategy Gaps in 2025