Are You Ready to Deal with Trump’s Trade Tariffs?

US President Donald J. Trump is making good on his promise to “Make America Great Again” by imposing reciprocal tariffs on goods entering the United States. His motives may vary—leveling the playing field, protecting US jobs, domestic security or curbing fentanyl trade —but the outcome is clear: global trade is being disrupted, and supply chains are in turmoil.  

What’s next? Nobody knows … 

On April 2, 2025—“Liberation Day”—the Trump Administration unveiled its new global tariff regime: 10% tariff on all imports; with additional country specific reciprocal tariffs. 

Soon after, sector-specific tariffs and concessions were announced and an escalating trade war with China was triggered. The conflict peaked when the USA imposed a 145% tariff on Chinese goods, while China retaliated with 125% tariffs on US products and restrictions on rare earth metal exports. 

These swings—tariffs, exemptions, and shifting trade deals—are creating unprecedented uncertainty. For global businesses, the challenge is staying prepared for constant change. 

At DHL Consulting, we are tracking developments closely and have identified strategic supply chain imperatives across four highly exposed industries. 

To move in this direction, the administration has introduced targeted exceptions that incentivize US-based production while in short-term accommodating key trade partners’ push for lower tariff rates: 

• 3.75% import credit for US-assembled cars. 

• No tariff stacking on auto parts (beyond steel and aluminum)

• USMCA exemptions; with progressively fewer exceptions year on year. 
• Exemptions for vehicles with ≥85% US-made components.
• Country specific tariff rates – capped at 15% for Korea, the EU, and Japan; but increase from a previous 2.5% baseline.

How Automakers Are Responding 

Leading brands such as Honda, Nissan, and Ford are already adapting by reshaping their supply chain strategies. Four moves stand out: 

1. Localize – expand production capacity in the United States 
2. Partner – collaborate with other OEMs to maximize US manufacturing capacity 
3. Rethink – redesign supply chains for US-market resilience, including diversifying parts sourcing 
4. Diversify revenue – capitalize on the rapidly booming used car market as consumer demand shifts 

But the question arises: Will this be enough in the long term? There are additional steps that e-retail manufacturers and platforms can take to have an increased chance of keeping revenue and operations flowing: 

• Rethink target market – by tapping into new markets, such as Africa or the EU, and revenue sources, or diversifying and optimizing your product portfolio to contain more premium goods 

• Stay ahead of regulations – with a data-driven approach, auditing product origin data or upgrading systems to capture key product data 

• Offer more sustainable recommerce options – allowing you to bypass overseas manufacturing and shipping costs while catering to consumers’ demand for more conscious retail 

In contrast, generic drug production may remain located overseas to keep price competitive. However, this may mean that generic drug manufacturers will need to face uncertainty under Trump’s bilateral tariff deals. This could drive drug shortages and higher costs if exemptions are not secured. 

Strategic responses:  

Branded 

• Leverage US subsidies and review strategic investments 

• Evaluate price strategies and mitigation methods under Trump’s price cutting policies 

• Consider alternative solutions like Contract Development Manufacturing Organizations (CDMOs) 

Generic

• Reassess production bases (eg., India vs China) under Trump’s new trade deals 

• Prepare contingency plan by simulating various tariff scenarios 

• Stay close to customs experts to understand the latest customs policies and solutions 

Semiconductors  

In 1990, the US produced 37% of global semiconductors. By 2022, that share had fallen to 10%. Today, Taiwan and South Korea dominate advanced chipmaking. With AI and technology race, semiconductor not only remains an important supply chain asset, but is also a question of strategic geopolitical advantage for economies. 

Trump’s strategy to revitalize the semiconductor manufacturing in USA is twofold: 

1. Impose sky-high tariffs on chip import
2. Incentivize onshoring with tax credits and incentives to rebuild domestic capacity 

Additionally, it seeks to restrict competition and the development of advanced technology in rival countries, such as China, by imposing strict export controls on trade with them 

Make sure you are ready to deal with the new Trump tariffs 

Global trade and supply chains are being reshaped in real time. The world is shifting from “just in time” to “just in case,” with agility now the defining trait of successful supply chains. 

Whether Trump’s tariffs will truly re-industrialize America is uncertain. What is certain: companies must re-examine supply chains, stress-test against new tariff regimes, and prepare for more trade shocks ahead. 

At DHL Consulting, we have helped clients navigate seismic changes before—such as Brexit—and we’re doing the same now. Our experts provide: 

• Supply chain simulations of tariff impacts 

• Strategic roadmaps to identify vulnerabilities and opportunities 

• Direct access to customs expertise and operational insights  

We will continue to monitor developments and provide practical guidance to help you stay ahead in an unpredictable trade landscape.