Trade action was a touchstone of the first Trump administration. Statements throughout the campaign by President-Elect Donald Trump and his surrogates suggest significant trade actions in the second term. The actions and potential retaliation by trading partners present supply chain challenges for companies' imports and exports. There will also be opportunities for U.S. manufacturers and companies seeking to invest in the United States. At this time, companies should understand their current exposure to the challenges and be prepared to take advantage of upcoming opportunities.

Challenges: China-Focused and Potential Actions Against All Trading Partners

  • Increasing Tariffs
Statements suggest an increase in tariffs across the board—60% on all Chinese imports and 10 percent to 20 percent on imports from all other countries. Tariffs also can be increased through a variety of investigations. Section 232 National Security, Section 301, Section 201 and Antidumping and Countervailing Duty investigations were used during the first Trump administration and are expected to be used again. Congressional action also could increase tariffs on China even higher, such as ending permanent normal trade relations (PNTR) with China. Certain officials, however, support targeted tariffs rather than across the board tariffs. As Inauguration Day approaches, the contours of the trade policy will take shape as the incoming president discusses actions during his first 100 days and related executive orders.
  • Expanded Trade Enforcement
The incoming Administration will ensure that both existing and new tariffs are collected through Customs and Border Protection (CBP) enforcement. CBP will be directed to use all of its existing authorities to investigate tariff evasion.