6 Steps to Prepare for 2025 Tariffs and Minimize Disruption

As the U.S. prepares for potential changes to trade policies in 2025, importers are bracing for higher costs and new supply chain challenges. To help businesses stay ahead, GEODIS has created a guide called “Managing 2025 Tariff Increases: The Smart Importer’s Strategy Guide,” which offers practical steps to prepare for the changes.

“Importers that act early will be better positioned to manage costs and maintain competitive advantages in the face of evolving trade policies,” said Josh Jungwirth, Executive Vice President of Freight Forwarding at GEODIS.

Here are six key strategies from the guide to help businesses protect their margins and stay competitive:

1. Calculate Your Tariff Exposure

Start by analyzing your import structure to understand your current tariff exposure. Develop contingency plans for different scenarios, such as a universal tariff (10-20%), targeted increases (25%), or high-impact tariffs on Chinese imports (60-100%). Early planni…

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North American Manufacturers Stockpile Goods Amid Tariff Concerns

According to the GEP Global Supply Chain Volatility Index, North American manufacturers are stockpiling materials at the highest levels since July, preparing for potential tariff hikes under the incoming Trump administration. Meanwhile, Asian supply chains are experiencing a surge in activity, driven by China’s government stimulus and export demand. The index, which measures global supply chain performance, rose in November to -0.20 from -0.39, signaling tightened capacity globally.

Manufacturers are bracing for higher import costs in North America by building safety stock, particularly in the consumer goods sector. “In November, U.S. manufacturers, particularly in the consumer goods sector, increased their safety stocks to help blunt any immediate tariff increases,” said John Piatek, vice president at GEP. This increased activity pushed the region’s supply chain activity index to a four-month high.

Asia saw its strongest growth in three-and-a-half years as Chi…

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C.H. Robinson CEO on Trump Tariffs: “The Freight Still Has to Move”

C.H. Robinson CEO Dave Bozeman addressed the potential impact of President-elect Donald Trump’s proposed tariffs during the company’s recent investor day, according to CNBC's coverage of the event. Trump has suggested imposing a 25% tariff on goods from Mexico and Canada and a 60% tariff on Chinese imports, a move that could have significant implications for the logistics industry. Despite these challenges, Bozeman remains confident in the company's ability to adapt.

“Some shippers will say, ‘We will take on that tariff.’ The economics of that volume will probably change in pricing and things like that. Either way we’re still going to move that freight,” Bozeman said. “The freight still has to move. It might just move at a different starting point, and we would still be there to move that.”

The investor day presentation highlighted C.H. Robinson's exposure to key trade routes, such as U.S.-Mexico and China-U.S., where tariffs could disrupt shipping costs a…

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Made in China? Tariffs Are Adding Expenses to Your Holiday Shopping

If you are shopping for holiday gifts and decorations this season, check the label for where the products were made. If the label says “Made In China” you can count on price increases in the near future. 

On a recent trip to Target, I found row after row of Christmas decorations, all with “Made In China” labels. China has been the primary source of Christmas decorations, lights, and artificial trees for more than 25 years. Yiwu, a city in Zhejiang province about an hour by train from Shanghai, is known as the “Christmas capital of the world.” Over 600 factories in Yiwu and surrounding areas produce more than two-thirds of the world’s Christmas decorations.

Holiday gifts and decorations are just a few of the items that will likely increase in price based on the increase in import tariff promises made by the incoming Trump administration. The intended effect of high import tariffs is for manufacturing to come back to the U.S. by forcing importers t…

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U.S. Halts Major Asian Shipping Alliance, Says Filing Lacked Details

The Federal Maritime Commission (FMC) has delayed the start of the Premier Alliance Agreement, a proposed vessel-sharing partnership between HMM, Ocean Network Express (ONE), and Yang Ming. The agreement aims to allow the three companies to share vessels, charter space, and collaborate on global shipping operations. It was designed to replace THE Alliance, which is being restructured following Hapag-Lloyd’s departure to join Maersk in the new Gemini Cooperation.

The Premier Alliance Agreement was filed with the FMC on October 28 and was set to take effect on December 12. However, the FMC determined that the filing lacked sufficient details to evaluate its competitive impact and compliance with statutory requirements.

“The Commission has determined that the Premier Alliance Agreement as submitted lacks sufficient detail to allow for a complete analysis of potential competitive impacts and whether the agreement fully complies with all statutory requirements,…

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Study: 48% of Leaders Cite Tariffs as Supply Chain’s Biggest Issue

Nearly half (48%) of global supply chain leaders identified tariffs and trade barriers as their top challenge in 2024. The 2024 Supply Chain Intelligence Report, conducted by Descartes Systems Group in partnership with SAPIO Research, surveyed 978 leaders from companies of all sizes and industries. Other major concerns included supply chain disruptions (45%) and geopolitical instability (41%). The report highlights how logistics professionals are grappling with increasingly complex global challenges.

The study found that concerns over tariffs affect businesses of all sizes, from small firms with fewer than 250 employees to large companies with over 50,000 employees. Regardless of size, tariffs and trade barriers emerged as the most pressing issue.

“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology, and strategic planning,” said Jackso…

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ILA, USMX Clash Over Automation in Master Contract Negotiations

While negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) did not go as planned last month, with four days of scheduled meetings ending after nearly two days, that has not stopped the parties from making their respective cases regarding their specific needs for a new Master Contract.

As previously reported by LM, ILA and USMX resumed Master Contract discussions in November, “to discuss all outstanding issues to reach a new contract,” in advance of a January 15, 2025 deadline for a new deal. This followed a brief three-day strike on October 1, after the expiration of their previous six-year contract, which resulted in 36 East and Gulf Coast ports, stretching from Maine to Texas, going on strike for the first time since 1977.

USMX said at the time that there was positive progress on several issues, but they were unable to make significant progress on discussions focusing on a r…

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Global Trade to Hit Record $33 Trillion in 2024 Amid Tariff Concerns

Global trade is projected to reach an all-time high of $33 trillion in 2024, a $1 trillion increase from 2023. This 3.3% annual growth is driven by a 7% rise in trade services, which contributed $500 billion to the expansion. According to the UN Conference on Trade and Development’s (UNCTAD) Global Trade Update, goods trade saw a modest 2% increase, remaining below its 2022 peak.

In the third quarter, developed economies drove growth thanks to stable demand and favorable conditions. In contrast, developing economies, usually strong in trade, struggled with a 1% drop in imports and South-South trade. While energy and metals saw sharp declines, high-growth sectors like Information and Communication Technology (ICT) and apparel surged by 13% and 14%, showing potential for growth in higher-value industries.

“Looking ahead to 2025, UNCTAD cautioned about potential disruptions from broader U.S. tariffs under a new administration, which could strai…

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EU Considers Crackdown on Temu, Shein with New Tax Measures

The European Union is considering new measures to address the surge in packages arriving from ultra-low-cost online retailers like Shein, Temu, and AliExpress. According to the Financial Times, these platforms benefit from customs exemptions for items under $157, creating safety risks and undercutting EU businesses.

Currently, about 4 billion low-value parcels are expected to enter the EU this year—nearly triple the number in 2022. The volume overwhelms customs officials and allows unsafe products, such as toxic toys and counterfeit goods, to reach consumers unchecked. EU safety authorities reported over 3,400 dangerous products last year, including toys, cosmetics, and clothes.

The European Commission is considering a handling fee on each package or a tax on e-commerce platforms’ revenue to deter cheap imports. While the fee would apply to retailers shipping directly to EU customers, such as Temu and Shein, the revenue tax would require approval from all …

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Louisiana and Washington Ports Win Big in $4.85M Marine Highway Grants

The U.S. Department of Transportation’s Maritime Administration (MARAD) has awarded $4.85 million in grants to improve goods movement along the nation’s waterways. This funding, part of the United States Marine Highway Program (USMHP), will finance projects in Louisiana, Puerto Rico, Washington, and West Virginia.

“These investments in the United States Marine Highway Program move goods more quickly and efficiently, modernize our ports and waterways, and help lower the cost of essential goods for families,” said U.S. Transportation Secretary Pete Buttigieg.

The USMHP focuses on expanding the use of navigable waterways to reduce landside congestion, improve transportation efficiency, and support supply chain resilience. Projects must comply with the “Build America, Buy America” provisions, ensuring U.S.-made materials and equipment use.

Selected Projects:

Alexandria, Louisiana: $2.5M for a 275-ton marine crane and forklift to handle diverse cargo, in…
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Talking Supply Chain: Open eBL tackles trade inefficiencies

Digital bills of lading are not new, but to date, they have not caught on to the extent that backers hoped for. The most prominent attempt to create a global standard for electronic bills of lading (eBLs) was TradeLens, backed by Maersk, IBM and others. It, too, failed.

The reason may be related to the complexity of global trade, the various electronic systems used by the many participants in the network, and a lack of standardization.

But, a new organization is out to try again, and the backers of it believe the time is right to finally convert the industry to electronic bill of ladings.

“Research shows the paper bill of lading can account for 10% to 30% of total trade document costs within shipping,” explained Vanessa Mbanefo, director of Open eBL, which is developing an open-source standards-based electronic bill of lading. “This is not surprising because the bill of lading is a foundational shipping document which serves as legal record of receipt of…

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Donald Trump Demands BRICS End Push to Replace the U.S. Dollar

President-elect Donald Trump lashed out at BRICS nations on Truth Social, threatening “100% tariffs” and exclusion from the U.S. economy if they pursue alternatives to the U.S. dollar.

Trump’s fiery remarks come as the BRICS nations—an economic bloc comprising Brazil, Russia, India, China, and South Africa—discuss moving away from the dollar in global trade. Recent summits have focused on plans to rely less on the U.S. dollar, including ideas for new financial systems or even a shared BRICS currency. These moves are viewed as a direct challenge to the United States' economic dominance.

Trump declared that the U.S. would not “stand by and watch” such actions. He demanded commitments from BRICS countries to avoid supporting any currency aimed at replacing the dollar. Failure to comply, he warned, would lead to tariffs and loss of access to the U.S. market.

The BRICS bloc represents some of the world’s largest and fastest-growing economies, collectivel…

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