Trump’s America First Trade Policy: What It Means for U.S. Importers in 2025 and Beyond

The new Trump Administration has left many U.S. importers wondering how the return of America First Trade policies would impact international trade. 

Key Takeaways:

• U.S. free trade agreements, like the USMCA and others, may be renegotiated, leading to new tariffs, stricter enforcement, and policy changes affecting imports from Mexico and Canada.
• The administration may expand tariffs on Chinese products, particularly in manufacturing, technology, and energy sectors, raising import costs - this has already been set at an additional 20% tariffs on Chines imports, in addition to the previous tariffs.
• The $800 duty-free exemption (de minimis rule) could be lowered or eliminated, increasing compliance requirements and costs for ecommerce and small-package imports.
• The U.S. is targeting countries like China and others for manipulating currency exchange rates, potentially imposing new tariffs and financial penalties.
• Importers should expect more customs inspections, stricter penalties for violations, and increased border security measures against counterfeit goods and illegal imports.

In this article, we’ll outline the background of Trump’s America First policy, expected changes under the new administration, how U.S.-China trade relations will be impacted, and what all of this means for importers.

The Background of Trump's America First Trade Policy

During President Trump’s first term, his America First Trade Policy was designed to prioritize American economic growth, protect domestic industries, and reduce trade deficits. The policy emphasized:

• Tariffs and Trade Barriers: Tariffs were placed on imports from key trading partners, particularly China, to combat what was perceived as unfair trade practices.
• National Security Focus: Supply chains were reshaped to reduce reliance on foreign goods, especially in industries deemed critical to U.S. national security.
• USMCA (NAFTA Replacement): The administration renegotiated the United States-Mexico-Canada Agreement (USMCA) to modernize trade relations and ensure more benefits for American workers and manufacturers.
• Currency Manipulation & Trade Deficits: Policies were introduced to address currency manipulation by foreign governments, aiming to make American exports more competitive.

While this approach led to increased tariffs and trade tensions, it also prompted companies to reassess supply chains, reshoring some manufacturing to the U.S., or shifting sourcing to countries outside of China. Now, under the new administration, those policies are set to evolve even further.

What Changes Under the New Administration?

The Biden administration maintained some aspects of the America First Trade Policy but adopted a more diplomatic and multilateral approach to trade. However, now that the new Trump administration has taken office in 2025, further changes are expected, with a renewed emphasis on tariffs, trade enforcement, and economic security. 

The new policies are expected to prioritize reducing the U.S. trade deficit, protecting domestic industries, and enforcing stricter trade rules on key partners like China and Mexico. I’ll review some of the expected changes below.

1. Review of Existing Trade Agreements

The United States-Mexico-Canada Agreement (USMCA) is due for a major review in July 2026, and the new administration has already discussed reevaluating whether the agreement benefits American workers, manufacturers, and businesses. Possible outcomes include:

• Renegotiation of certain provisions to ensure stronger labor protections and domestic manufacturing advantages.
• New tariffs or trade restrictions on imports from Mexico and Canada if they are found to undercut U.S. industries.
• Increased enforcement and consequences for trade violations, particularly in the auto and agriculture sectors.

Beyond the USMCA, the administration is also likely to assess other existing bilateral and multilateral trade agreements to ensure the U.S. is gaining a competitive edge in global trade.

Update: March 6, 2025

President Trump has agreed to provide tariff exemptions to any Mexican and Canadian goods that qualify for duty-free entry under the United States-Mexico-Canada Agreement (USMCA). Approximately 50% of Mexican goods and 60% of Canadian goods are still subject to the newly announced 25% tariff.

To learn what commodities will be allowed duty-free entry, please contact our team.

Update: March 4, 2025

The previously delayed tariffs on imports from Mexico and Canada officially went into effect at 12:01 a.m. on March 4.

The tariffs, originally proposed early in February, place a 25% tariff on all imports from Mexico and a 25% tariff on all imports from Canada except for energy and energy resources. Those commodities will be taxed at an additional 10%.

As of March 5, the U.S. granted a request from automakers to exclude imports of automobiles from Mexico and Canada from the tariff order for one month.

Additionally, the U.S. announced that starting April 2, reciprocal tariffs would be placed on any country that taxes American exports.

Canada responded with a 25% tariff of its own, starting with $21 billion USD worth of U.S. goods, effective immediately. That tax will apply to an additional $86 billion USD worth of American products over the next 21 days.

At the time of this update, Mexico has not announced any retaliatory tariffs.

Update: February 3, 2025

On Feb. 1, 2025, President Trump moved forward with the proposed tariffs on goods from Mexico, Canada, and China.

Here's how the tariffs are broken down:

• Canada: 25% additional ad valorem duty on all imports except energy or energy resources, which will be charged at 10%.
• Mexico: 25% additional ad valorem duty, no exceptions.
• China: 10% additional ad valorem duty, in addition to any current tariffs, with no exceptions listed. This applies to Hong Kong as well.

The tariffs for China were enforced as of 12:01 am EST on Feb. 4, 2025 on imports either entering the country for consumption or being withdrawn from a bonded warehouse for consumption. The U.S. was able to reach an agreement with Mexico and Canada on Feb. 3rd to delay the tariffs by one month.

In addition to the ad valorem tariffs being applied to imports from each of the three nations (if and when they officially go into effect), there are other provisions written into each order to provide clarity on specific exceptional situations.

• Goods that were already on their final mode of transit before 12:01 AM on Feb. 1 for entry to the U.S. will be exempt from the tariff.
• Section 321 entries, qualifying for duty-free entry under de minimis, have been suspended. All applicable tariffs on such products must be paid and entry filed formally (pending US Customs programming updates).
• No duty drawbacks will be available for duties paid under any of the three executive orders.
• Use of U.S. free trade zones (FTZs) will be limited to products that qualify for privileged foreign status once enforcement begins and be subject to standard tariffs for the applicable HTS code once removed for consumption.

All orders were pushed through as part of a national emergency under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act.

Have Canada, Mexico, or China Imposed Retaliatory Tariffs?

As of March 4, Canada has responded with a 25% tariff on U.S. imports, starting with $21 billion USD worth of U.S. goods, effective immediately. That tax will apply to an additional $86 billion USD worth of American products over the next 21 days.

At the time of this update, Mexico has not announced any retaliatory tariffs.

Update: February 3, 2025

The U.S. has come to an agreement with Canada and Mexico to delay the tariffs one month, though it is expected that both nations will respond with retaliatory tariffs of their own if a long-term deal is not reached by then.

China responded by placing an additional 15% tariff on coal and liquefied natural gas (LNG) as well as a 10% tariff on crude oil, agricultural machinery, and some automobiles.

2. Tariff Adjustments

The new administration may introduce higher tariffs on goods from countries deemed to have unfair trade practices. Some expected changes include:

• Potential expansion of tariffs on China, particularly in manufacturing, steel, aluminum, and technology sectors.
• Possible tariff hikes on Mexican and Canadian imports if the administration views these countries as unfairly benefiting under USMCA.
• Sector-specific tariff reviews to protect industries like semiconductors, pharmaceuticals, and renewable energy from foreign competition.

These changes could increase import costs for businesses that source from impacted countries.

Update: March 4, 2025

As of March 4, a flat 25% tariff has been levied against all imports from Mexico and all imports from Canada except for energy and energy resources. Those commodities will be taxed at an additional 10%.

Additionally, the U.S. doubled the previously imposed 10% tariff on Chinese imports to 20%. That is in addition to leftover tariffs (like Section 301) that were imposed and kept during the previous Trump and Biden administrations.

Update: February 11, 2025

On Feb. 10, the Trump Administration announced a flat 25% tariff on all steel and aluminum imports into the U.S.

This announcement removes all exceptions and exemptions previously allowed on these imports, and raises the tariff price on aluminum from 10% to 25%.

The tariff appears to be largely aimed at Canada and Mexico who account for the vast majority of steel imports into the U.S., and for whom the Section 232 excerptions previously applied.

3. De Minimis Rule Review ($800 Duty-Free Exemption)

The current de minimis threshold allows for goods valued at $800 or less to enter the U.S. duty-free. This policy has been widely used by ecommerce companies - particularly those in China, or by way of Mexico - to ship goods directly to U.S. consumers while avoiding import duties.

The new administration is expected to tighten this loophole, which could lead to:

• Lowering the de minimis threshold (e.g., reducing or eliminating it for certain high-risk countries).
• Stricter enforcement on shipments from China to curb undervaluation of goods.
• More scrutiny on ecommerce imports, requiring additional customs documentation and duties.

As of Feb. 3, 2025, the Trump Administration has suspended Section 321 de minimis shipments from China. The same will be true of Mexico and Canada if a long-term agreement is not reached.

4. Currency and Exchange Rate Policies

The U.S. Treasury Department is investigating how foreign countries manipulate their currency to gain a trade advantage. Some anticipated actions include:

• Targeting China, Vietnam, and other nations suspected of undervaluing their currencies to make their exports cheaper.
• New financial penalties or tariffs on countries engaged in currency manipulation.
• Negotiations with international partners to create fairer exchange rate policies.

For importers, this could mean higher costs on goods from affected countries if currency-based trade actions are taken.

5. Tighter Trade Enforcement

The U.S. government is expected to crack down on illicit imports, counterfeit goods, and trade violations by strengthening trade enforcement policies. Key areas of focus include:

• Increased customs inspections for shipments from high-risk countries.
• Stronger penalties for importers violating anti-dumping or countervailing duty laws.
• Expanded monitoring of transshipped goods (where imports are routed through third countries to avoid tariffs).
• Enhanced border security measures to combat illegal drugs, counterfeit electronics, and substandard medical products.

These measures will require importers to ensure compliance with stricter regulations and be prepared for potential delays in customs processing.

How Will US-China Trade Be Affected?

One of the most significant trade issues remains U.S.-China relations. The previous America First policies heavily targeted China due to concerns over:

• Unfair trade practices and market manipulation
• Intellectual property theft and forced technology transfers
• Currency manipulation to maintain an artificial trade advantage
• Dependence on Chinese supply chains for critical goods that hurt domestic industry

The new administration is expected to double down on trade enforcement against China, possibly leading to stricter tariffs, supply chain shifts, and increased regulatory scrutiny.

1. Expansion of Tariffs on Chinese Goods

The U.S. Trade Representative (USTR) is currently reviewing a 2024 report on China’s trade policies, which could lead to:

• Higher tariffs on Chinese imports, particularly in manufacturing, industrial goods, and tech components.
• More aggressive trade restrictions targeting Chinese firms operating in the U.S. market.
• Expanded duties on transshipped goods from countries like Vietnam and Malaysia, which serve as intermediaries for Chinese products.

For importers, this means higher costs for Chinese goods and potential restrictions on key product categories.

On Feb. 3, 2025, the Trump Administration has levied an additional 10% tariff on all Chinese imports, on top of tariffs already in place. As of March 4, 2025, that 10% tariff was doubled to 20%.

Related: Importing from China: What You Need to Know

2. Stronger Import Controls on Chinese Goods

The U.S. government will increase scrutiny on Chinese imports to prevent tariff evasion and trade circumvention tactics. This includes:

• Tighter enforcement on country-of-origin claims to detect products falsely labeled as non-Chinese.
• Additional inspections and customs documentation for high-risk imports.
• Restrictions on Chinese companies linked to intellectual property theft or national security concerns.

3. Intellectual Property & Technology Trade Restrictions

The new administration is expected to strengthen protections for U.S. intellectual property by:

• Blocking Chinese companies from acquiring American patents and trademarks unfairly.
• Imposing restrictions on U.S. businesses exporting critical technology to China.
• Expanding cybersecurity measures to prevent espionage through trade agreements.

These restrictions could impact U.S. businesses reliant on Chinese manufacturing and technology partnerships.

Related: Importing Trademarked Goods: Overcoming IP Import Hurdles

4. Potential Supply Chain Shifts

As tariffs and restrictions increase, more U.S. companies may look to alternative sourcing destinations, such as:

• Vietnam: Already a growing alternative for textiles, electronics, and furniture manufacturing.
• India: Emerging as a major player in pharmaceuticals and technology.
• Mexico: Gaining attention due to USMCA advantages and reduced shipping costs.

For importers, diversifying supply chains will become a strategic priority to minimize trade disruptions.

What This Means for U.S. Importers

The evolving trade policies pose challenges and opportunities for businesses relying on imports. Here’s what importers should prepare for:

1. Expect Higher Costs on Certain Imports: If new tariffs are introduced or previous ones remain in place, the cost of importing certain goods may rise. Importers should assess how tariff changes impact their products and explore alternative sourcing options.
2. Increased Compliance Requirements: With stricter trade enforcement and regulatory changes, importers should ensure they are fully compliant with customs regulations, including proper classification, valuation, and country-of-origin rules.
3. Potential Changes to the De Minimis Rule: If the government tightens the $800 duty-free import threshold, companies relying on small-package shipments may face new tariff costs. It’s important to stay updated on policy changes to avoid unexpected duty fees.
4. Strategic Sourcing & Trade Agreements: As trade relations shift, importers should diversify suppliers and evaluate trade agreements that may impact their industry. Countries with favorable trade agreements with the U.S. (such as Mexico under the USMCA) may become more attractive sourcing options.

Need Help Navigating Trade Policy Changes? USA Customs Clearance Can Assist!

With evolving U.S. trade policies, importers must stay informed and adapt to avoid costly disruptions. Whether you’re dealing with tariffs, customs regulations, or sourcing challenges, USA Customs Clearance provides expert import consulting and guidance to help businesses navigate complex trade policies.

Have questions about import regulations or need assistance with customs compliance? Contact us today at (855) 912-0406 or schedule a consultation with one of our Licensed Customs Brokers.