How Tariffs Are Affecting Every Part of the Supply Chain

The first few months of 2025 have been a bumpy ride for every sector of the logistics industry. It’s no secret what’s behind the turmoil: the Trump administration’s new waves of tariffs. But the bigger question is why these tariffs are disrupting every corner of global trade. In this blog, we’ll break down how and why the new tariffs are creating ripple effects throughout the entire global supply chain. 

Again, the tariffs are at the root of all the upheaval and disruption across the supply chain. But it’s not just the implementation of tariffs that is causing problems for shippers and importers. Perhaps the larger issue is the lack of clarity surrounding each new wave of tariffs.  

With each new announcement, there have been layers of uncertainty over the timing and value of each additional tariff. This uncertainty has ultimately led to hesitancy and disruptions throughout every level of the supply chain. So why are these tariffs reaching so many different areas? Let’s explore. 

Uncertainty 

At the root of everything is the uncertainty importers are facing regarding the tariffs. This actually dates back to the final quarter of 2024. Following the U.S. Presidential election, importers were already wary of potential tariffs coming once Trump took office. Tariffs were a large part of his campaign platform, and many businesses tried to get ahead of any potential tariff action by loading up their inventories in late 2024 and early 2025 before any additional duties could be imposed.  

But even after that, we’ve seen hesitancy across the globe when it comes to shipping. The start/stop nature of these tariffs is leaving importers unsure if their goods will be subject to additional duties when they clear customs. And if they do face additional fees, oftentimes they can’t be sure what the percentage will be.  

For example, during the initial round of tariffs in March, additional duties were enforced for three days before Trump paused the tariffs on goods from Mexico and Canada. This on and off nature is causing many businesses to reconsider their strategies and only ship the bare minimum until they have more clarity. 

Whether they like them or not, businesses can handle additional duty payments as long as they can plan and budget for them. When they don’t know if, or even how much, they must pay in additional duties is when they struggle to ship with confidence. This could impact the long-term shipping forecast for the rest of 2025 as shippers try to get their product stateside before they face additional tariffs, leading to tepid demand later in the year. 

Ripple Effect 

This uncertainty is then manifesting itself across supply chains, as well. The trucking market is also facing some difficult decisions due to these tariffs. Not only will they likely face less demand due to the lack of shipments coming in from the Asia, but demand from Canada and Mexico is also likely to decrease.  

And it’s not just demand that could suffer, either. With automotive tariffs impacting every aspect of car manufacturing, the cost of trucks themselves could skyrocket in the near future. With the parts used in the assembly of trucks facing increased tariffs, operational costs for trucking companies could be yet another area that takes a hit. 

There’s also the increased scrutiny on imported goods that is causing additional headaches. A large portion of goods coming from Mexico and Canada are assembled with parts from all over the world. Understanding the updated regulations related to USMCA-eligible goods takes a special level of expertise to determine whether these goods will be subject to tariffs or not. All these small extra steps can add up to larger delays with paperwork of declarations of goods as customs brokers try to keep up with the changing regulations. 

Finally, many shippers are seeing increased delays at the borders, especially the Mexico-U.S. border. With Mexico agreeing to crack down on illegal drugs crossing the border, trucks are subject to more thorough checks and longer wait times before crossing. 

These are just a few examples of the wide-reaching impacts of the current tariff roller coaster, going well beyond simply increased costs for importers and consumers. If you need help understanding how these tariffs will impact your supply chain or simply want a second opinion on your current operations, reach out to Scarbrough today for a tailored strategy to keep your supply chain running smoothly.