Assessing the First 60 Days of Trump’s Tariffs, Duties, and Protectionist Policies

Article Highlights:

• The Trump administration is making tariffs a large part of its international trade policy, using them to target both individual nations and sectors. 
• Thus far, the tariffs have been difficult to follow or predict, with many being announced and then eventually withdrawn or pared back based on the response of the targeted countries. 
• Trump’s tariff regime has already triggered a preordering frenzy among businesses attempting to import goods before the taxes go into effect, including in the automotive and food and beverage industries. 
• Companies can’t afford to adopt a wait-and-see approach to these trade barriers over the long term—they need to develop and implement proactive SCRM measures that enhance supply chain agility and resilience 

Within hours of his inauguration, President Trump made clear that his new administration intended to make reshaping the global trade landscape a major policy focus. Shortly thereafter, he announced plans to implement 25 percent tariffs on imports from Canada and Mexico, citing those countries’ failure to stem the flow of fentanyl and undocumented immigrants. He also signed a related executive order directing key federal agencies to undertake a large-scale assessment of all U.S. trade policies, an action suggesting that more sweeping trade barriers were still to come. 

In the 60 days since that inauguration-day salvo, Trump has threatened, reversed, withdrawn, and implemented a succession of tariffs targeting both specific countries and sectors. The first two months of his presidency have been largely defined by his trade policy, which has often been difficult to interpret and predict. With this highly fluid trade turmoil now having officially reached the two-month mark, it’s worth taking a moment to assess how we got here, what restrictions have actually been implemented, and what the strategy and reasoning behind this unprecedented trade regime is. 

A Timeline of Trump’s Tariffs

In his first two months in office, Trump has been clear about his administration’s intentions to lean hard into tariffs as an economic tool and potent form of leverage. He hasn’t disappointed. 

• February 1: Trump issued executive orders imposing 25% tariffs on most imports from Canada and Mexico. The tariffs were scheduled to go into effect three days later, on February 4. Trump also announced a 10% across-the-board tariff on Chinese goods. A White House memo explained that its trade barriers on China were “In response to China’s intellectual property theft, forced technology transfer, and other unreasonable behavior.”

• February 3: One day before the tariffs were slated to enter into force, President Trump reached agreements with leaders from Canada and Mexico that included apparent concessions to U.S. demands. President Claudia Sheinbaum of Mexico promised to deploy more troops to the U.S.-Mexico border, while Canadian Prime Minister Justin Trudeau announced that his country and the U.S. had formed a “Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

• February 4: The new 10% tariffs on all Chinese imports went into effect. The White House issued a separate memo outlining the executive action days earlier, which went into extensive detail citing the reasons for the new trade barriers against the People’s Republic of China (PRC). 

• February 10: The White House announced plans to implement separate 25% duties on all steel and aluminum imports. The tariffs, which are actually a resumption of Section 232 taxes from Trump’s previous term, were set to go into effect on March 12, 2025.

• February 13: The White House broadened its tariff policy significantly when it issued a memorandum announcing the “Fair and Reciprocal Plan.” The memorandum outlined a sweeping plan to restructure trade relationships all over the world based on reciprocity—meaning, in effect, that the U.S. will match the duty rates all other countries currently impose on U.S. goods. “By making trade more reciprocal and balanced,” the memorandum explains, “we can reduce the trade deficit; grow the United States economy; and improve our trade relationships with trading partners to the benefit of American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.”

• February 18: During a press conference, President Trump floated a new plan to levy 25% tariffs on all imported automobiles, semiconductors, and pharmaceuticals. While there was no hard date for the duties, he suggested they could be implemented as early as April 2. 

• March 4: On 12:01 am on Tuesday, March 4, the Trump administration followed through with a raft of tariffs on multiple countries. First, the 25% tariffs on most goods imported from Canada and Mexico—which had been delayed by one month in early February—were officially imposed on both countries. In addition, the U.S. levied an additional 10% tariff on Chinese imports. The tariffs are particularly impactful because of their scope and targets: China, Canada, and Mexico represent America’s three largest trading partners, and they collectively account for nearly half of all U.S. imports. 

• March 6: The Trump administration announced temporary exemptions from the 25% tariffs implemented two days earlier for all products covered by the US-Mexico-Canada Agreement (USMCA)—a trade agreement reached during Trump’s first term that covers a significant portion of the goods traded between the three countries. The tariffs were delayed until April 2. 

• March 12: On Wednesday, March 12, the 25% steel and aluminum tariffs announced on February 10 went into effect. The import tax affects every foreign country that sells the metals to U.S. importers. In response to the tariffs, a number of trading partners quickly declared plans for retaliatory tariffs. The European Union, for example, announced that it would implement taxes on $28 billion worth of American imports, including bourbon and motorcycles. 

• March 26: President Trump provided a glimpse into the sweeping tariffs set to go into effect on April 2—what the president has deemed “Liberation Day”—by announcing 25% tariffs on all foreign cars and auto parts. Companies covered by the USMCA will receive special consideration until the U.S. Commerce Department develops a process for determining how to levy duties on their non-U.S. components. 

Deciphering the Strategy Behind the Trump Tariffs

Tariffs have been around for centuries, and they’ve historically served three main purposes.

• Source of Government Revenue

Although often not the primary objective when instituting tariffs, import taxes can serve as a steady, viable source of federal government revenue. While wealthier nations like the U.S. have not deployed tariffs for this explicit purpose in generations, less developed countries utilize them to bolster their tax revenue. A 2019 study by the Peterson Institute for International Economics found that Jamaica, the Bahamas, Namibia, and Botswana all drew more than a quarter of their total government revenue from tariffs and other taxes on international trade. 

• Protection for Domestic Industries

This is arguably the most critical function of tariffs for larger, wealthier nations in the 21st century who want to safeguard domestic industries from global competitors. Since the era of globalization accelerated in the 1990s, U.S. manufacturers have been adversely affected by competition from foreign businesses and their factories. These foreign firms have often benefited from several distinct advantages, including access to labor that’s significantly cheaper than in the U.S., less government oversight, and fewer regulatory hurdles. In Trump’s first term, his administration imposed steel and aluminum tariffs in 2018, which did lead to a boost in domestic metal manufacturing—at least for a few years. But it also decreased revenue and growth for major American sectors like construction and transportation, which were hurt by higher input costs.

• Strategy for Addressing Trade Deficits and Unfair Practices

Finally, tariffs can operate as a countermeasure to existing trade deficits and a way to address unfair trade practices by foreign countries. President Trump’s executive orders, proclamations, and announcements have frequently cited China’s suspect trade behavior and legally murky behavior, and the Biden administration used similar justifications for its own China tariffs.

Based on the administration’s actions in the first sixty days, it seems likely President Trump is using tariffs to achieve these aims—including, even, as a way to boost government revenue and help offset the budget deficit. But he also sees import taxes as a more all-encompassing tool, an instrument that can achieve ends that go beyond international trade objectives. 

• Form of Diplomatic Leverage

As the Trump administration has demonstrated during its first 60 days, it intends to use tariffs as a way of leveraging the American market to extract a myriad of policy wins from other countries. The flurry of executive orders, memorandums, and proclamations have not minced words in this regard, frequently citing issues like illegal immigration and the flow of fentanyl and other opioids into the U.S. as reasons for implementing tariffs. 

As the Trump administration has demonstrated during its first 60 days, it intends to use tariffs as a way of leveraging the American market to extract a myriad of policy wins from other countries.

• A Means to Revitalizing American Manufacturing 

Revitalizing U.S. manufacturing has become one of the few bipartisan political aspirations over the past two decades, and several consecutive presidencies have attempted to boost America’s manufacturing sector through various initiatives involving both carrots and sticks. For his part, President Trump has argued that imposing sweeping tariffs on many of the materials and goods American businesses import from foreign countries will force them to turn to U.S. manufacturers instead. The idea is that, over time, higher prices on foreign commodities will push supply chains back to America and make U.S. factories and assembly sites more competitive. 

How the Trump Tariffs Are Reshaping Sourcing and Supply Chains

While it’s only been two months, President Trump’s trade regime is already impacting the way U.S. companies source their goods and build out their supply chains. There are two key ways the administration’s influence is being felt right now. 

It Triggered a Pre-Ordering Frenzy Among Businesses

Even before Trump was inaugurated, businesses suspected they were in for a significant bolstering of tariffs and other trade restrictions. This triggered a preordering frenzy, with businesses across many industries expediting shipments to the U.S. as early as possible to avoid additional tariffs. Automakers like General Motors and Mercedes Benz, Italian food and beverage businesses, and foreign steel manufacturers ramped up their logistics operations in order to bring their goods to the U.S. market sooner than originally planned. 

The speculation about a less-friendly global trade environment also may have contributed to the U.S. experiencing its largest monthly trade deficit in history. In December 2024, the U.S. trade deficit rose to $122 billion, as imports increased four percent amid front-loaded shipments. 

American Businesses Are Seeking Reshoring Opportunities

Second, the Trump administration’s raft of threatened, paused, and implemented tariffs have started to push American businesses to start looking for domestic suppliers. While it’s far too early for any solid figures demonstrating a shift toward onshoring and U.S. manufacturers, a number of organizations have made it clear that this process is underway. Corporations in a wide range of sectors—automotive, pharmaceuticals, and consumer electronics, among others—have announced or are seriously considering plans to expand U.S. production in response to the altered trade landscape. Some of the most prominent firms include:

• Rolls-Royce
• Eli Lilly
• Johnson & Johnson
• Compal Electronics 

Nevertheless, many firms are still waiting to get a more definitive sense of the nature of Trump’s tariffs: Are they short-term bargaining chips, or long-term barriers intended to permanently reconfigure global supply chains?

How Businesses Can Mitigate Tariffs and Supply Chain Impacts 

While some organizations are adopting a cautious wait-and-see approach to the evolving trade environment, many firms can’t stick with the existing status quo indefinitely—especially if Trump continues to implement more trade policies. Businesses need to start thinking about these tariffs as an emerging risk and developing ways to mitigate them through a proactive supply chain risk management (SCRM) framework. There are a few key SCRM measures firms can take right now.

• Supply Chain Mapping: Mapping direct and sub-tier suppliers can help firms understand their supply chain dependencies, and what parts and products could be subject to tariffs against China, Canada, Mexico, and other countries.

• Review of the Global Tariff Landscape: Trump has promised a so-called “Liberation Day” when his administration plans to establish reciprocal tariffs that match the import taxes other countries have for U.S. goods. While it’s not completely clear which countries will be subject to these reciprocal tariffs, businesses should educate themselves on the tariff rates for U.S. imports imposed by all the countries they source from. 

• Establish Domestic Alternatives: Although it may not be necessary to start shifting supply chains to the U.S. just yet, firms should start investigating what that kind of logistical undertaking would look like. Potential preliminary measures include searching for new suppliers, carrying out risk assessments, and comparing costs between existing manufacturers and their domestic counterparts. 

In order to effectively carry out these and other risk management measures, businesses may want to consider an SCRM platform. Z2Data’s suite of tools helps customers map their direct and sub-tier suppliers, understand their country dependencies, and evaluate risk among existing and prospective suppliers. In a volatile trade landscape, these are arguably more than just nice-to-have features—they’re critical functionalities that can mean the difference between multiplying disruptions and supply chain resilience. The case for agility is stronger than ever, and agility depends on the kind of data visibility that platforms like Z2Data provide.

To learn more about Z2Data and how it can help organizations effectively mitigate the impacts of tariffs and other trade restrictions, schedule a free demo with one of our product experts.