US Tariffs and Their Effect on Global Sourcing: How to Adapt Your Strategy and Manage Costs
by Henry Oh
The sweeping U.S. tariff changes of 2025 are reshaping global sourcing for businesses of all types – from nimble startups to sprawling multinationals. In early 2025, the White House enacted broad new import tariffs with unprecedented speed and scope (source). The cost of imported materials and products surged overnight, affecting virtually every industry.
Sourcing professionals across apparel, electronics, industrial equipment, consumer goods, and more are now grappling with higher costs and supply chain disruptions. No company is immune: whether you’re a small direct-to-consumer brand or a Fortune 500 manufacturer, these tariffs demand a strategic response.
This article provides a practical look at what’s changed and how to adapt, with guidance that applies universally across sectors and company sizes.
Tariffs Reshape the 2025 Trade Landscape
The new U.S. tariff regime introduced in April 2025 represents a fundamental shift in trade policy. Under a declared economic emergency, the administration imposed a 10% baseline tariff on nearly all imports into the United States (effective April 4, 2025) (source).
Additional country-specific tariffs took effect just days later, targeting nations with large trade imbalances with the U.S., with rates ranging from 11% up to 50% (source). Some of America’s biggest trading partners were hit with steep duties: for example, imports from the European Union now face a 20% tariff, and goods from China face a combined 54% tariff in total (source).
Major manufacturing centers like Vietnam (46%) and India (26%) are also subject to hefty tariffs, among others (source). These measures were enacted swiftly via executive order, catching many businesses off guard and leaving little time to prepare.
Certain categories have their own new tariffs as well.
A 25% duty on all imported automobiles and auto parts was implemented separately in early April (source), compounding the challenges for the automotive supply chain. Long-standing tariffs on steel and aluminum (25% since 2018) remain in effect, with even higher rates on specific metals from some countries (for instance, an extra 50% on Canadian steel was scheduled) (source).
Notably, goods from Canada and Mexico that meet USMCA trade agreement rules remain exempt from these new tariffs (non-USMCA-compliant goods from those countries still face a 25% tariff) (source). A few critical imports – such as certain pharmaceuticals, semiconductors, and minerals – received limited exemptions for national interest (source), but these are the exception rather than the rule.
The scale of these tariff increases is historic.
Overnight, average import duty rates in the U.S. leapt from around 2.5% to roughly 18.8% – the highest average tariff level since 1933 (source). Economists estimate this represents one of the largest tax hikes in decades, with the potential to shave around 0.8% off U.S. GDP in the near term (source).
The immediate implication for sourcing and supply chain managers is clear: importing goods has suddenly become far more expensive, and the old playbook of global sourcing must be rewritten. Every link in the supply chain – from raw material procurement to final assembly and delivery – now needs reevaluation under the lens of elevated tariffs. In this new landscape, staying informed and agile is key.
Companies are leaning on up-to-the-minute data and expert partners like East West Basics to understand tariff impacts and pivot their strategies accordingly.