Retail Radar March 2025 – Tariffs and Other Challenges in the Marketplace

Navigating Tariffs and Supply Chain Disruptions

WHAT TO KNOW:

After pausing additional tariffs on goods produced in Canada and Mexico, President Trump announced that starting March 4, the new tariffs will be implemented, “with full force” on the North American trade partners. The 25% tariff will be implemented on over 140 different categories of items including wood, plastics, textiles, and promotional material. Experts are expecting Canada and Mexico to reimplement counter-tariffs on all goods made in the US entering the respective countries.

Along with tariffs being sanctioned against Canada and Mexico, President Trump has also announced an additional 10% tariff to be added to all Chinese goods starting on March 4th. This 10% tariff will be in addition to the 10% already imposed on all goods originating in China that went into effect in early February. The President has threatened tariffs as high as 60% on Chinese goods.

In addition to tariffs imposed on Canada, China, and Mexico, the US is threatening to enforce 25% tariffs on all countries in the European Union. The EU has threatened counter tariffs on all American made products if they go into effect. Leaders from both sides were set to meet the week of 2/24 in hopes of maintaining a fair-trade agreement.

The implementation and creation of additional duties or tariffs is constantly changing by the day, so agreements could be made to avoid the tariffs mentioned above from going into effect.

No duty drawback opportunities will be available for any goods with the additional tariffs added to them.

IMPACT TO YOU:

The additional tariffs will drive up the cost of goods produced outside the U.S., impacting pricing across various categories. Since the majority of IMS’ displays, textiles, and promotional materials are sourced internationally, export costs are expected to rise. Stay tuned for updates in the coming months on how these tariffs affect container rates and import/export capacity.

LEARN MORE:

• https://apnews.com/article/trump-trade-tariffs-europe-meeting-5c05232388a692d12be963aed7e98b60
• https://www.bbc.com/news/articles/ce8yy3wpn6eo
• https://www.reuters.com/world/americas/trump-says-mexico-canada-tariffs-take-effect-march-4-2025-02-27/

Mitigating Tariff Impact: IMS’s Strategic Approach to Global Sourcing

IMS is addressing the challenges posed by tariffs through a flexible and strategic approach, ensuring that our clients continue to receive high-quality products at competitive prices. Here’s a breakdown of our approach and how we’re managing production across multiple regions to minimize the impact of fluctuating tariffs.

Key Strategies Include:

• Domestic Production: Where possible, IMS offers domestic production options to reduce reliance on overseas imports and minimize tariff-related costs.
• Sourcing from Low-Tariff Regions: IMS is strategically sourcing from countries that face lower or no tariffs, offering clients access to competitive pricing on international products.
• Diversified Supply Chain: We work with both domestic and international suppliers, allowing us to offer flexibility and avoid disruptions from changing global trade policies.

IMS remains committed to providing reliable, cost-effective solutions for our clients, ensuring access to quality products regardless of global trade fluctuations. With our diversified sourcing strategy, we continue to be a dependable partner in an evolving global market.