The incoming U.S. Presidential administration is loudly signaling that businesses should expect changes in trade policies in 2025. Although no specific policies have yet been promulgated, the President-Elect has stated in social media outlets that broadly sweeping import tariffs may be imposed on goods from Mexico, Canada and China. Even without policy details, there are key steps many U.S. businesses should consider in advance of any specific changes.

First, any business that exports goods, services or information, should have a complete understanding of the tariff classification of what it exports, the destination of its exports and who or what receives the exports. This information will enable any business to more quickly assess the specific impact on its business that results from any new trade policy that changes requirements for U.S. exports. For example, if the new administration imposes new restrictions on a broader range of technology exports to China, a business will need to assess whether those changes may require it to change customers, or limit export destinations in order to avoid violating license requirements. That assessment will require the business to know the classification and destinations of its exports.

Second, any business should more closely watch the trade policies announced by key destination countries for its exports. For example, a number of Wisconsin manufacturers export goods to Canadian provinces, whether as part of the automotive, agricultural or other lines of businesses. As the Canadian government acts either in reaction to the U.S. policies, or on its own initiative, its actions may directly impact current imports into the U.S. Wisconsin businesses that rely upon Canadian materials or goods may seek to find alternative sources or plan for changes in costs of goods. The interplay between existing requirements of the United States-Mexico-Canada Agreement (“USMCA”) and new trade policies may create havoc in the purchase and sale of many goods.

Third, any Wisconsin business that either exports or imports should regularly engage with its trade association advocacy efforts in order to ensure that critical information about the industry is timely and effectively communicated to state and federal agencies and legislators. At the same time, businesses may be able to obtain key updated information from trade association contacts to help negotiate its way through the changing trade environment.

Finally, every business must have a clear understanding of the impact of changed costs for the seller and buyer of goods if new or modified tariffs are imposed. In some industries, costs are readily passed along to the ultimate purchaser, but some purchase agreements may not easily enable transfer of the trade burden. These details will continue to thwart easy negotiation of many transactions, and may compel changes to the supply chain of the business to remain competitive.