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Making good on a long-standing promise to achieve “reciprocity” in trade imbalances, on April 2, 2025, President Donald Trump introduced a sweeping new tariff regime pursuant to his powers under the International Emergency Economic Powers Act of 1977 (“IEEPA”).
In what would become the steepest U.S. tariffs to be implemented in over a century, the President’s “reciprocal tariffs” were temporarily paused shortly after going into effect. But one thing is for certain: President Trump’s laser-focus on tariffs is not going anywhere. Enforcement agencies have been directed to prioritize tariff evasion and will be carefully scrutinizing corporate responses to increased trade burdens.
As tariff policies continue to develop, with rates now at record highs, understanding their implications is imperative. For companies, the Trump Administration’s reliance on tariffs will lead to meaningful supply chain impacts and potentially warrant strategic adjustments to the cost of tariffs or, at a minimum, the diversification of supplies to mitigate potential future tariff changes. But, in navigating these complex geopolitical circumstances, caution is essential and adept and informed approaches are required.
Linklaters is committed to guiding businesses through these intricacies, ensuring successful adaptation and resilience in an era of change. Our U.S. team has published an alert covering key recent developments and setting out proactive measures companies can take now to manage the new environment.
Read here for more: Navigating the Storm: U.S. Tariff Hikes and Managing the Impact
17 April 2025
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