🎣 What Just Happened?

Happy Thursday. President Trump just announced sweeping tariffs in the biggest trade policy shift in decades. Markets are already reeling.

Let’s break it down.

What Just Happened?

• 🚨 10% baseline tariff on all imports
• 🇨🇦🇲🇽 Canada & Mexico exempt—but autos, steel, and aluminum still taxed
• 🚘 25% on all foreign-made cars starts April 3, 2025
• 🌍 Vietnam and Cambodia? Now treated like China
• 📉 Stock market dropped $2 trillion in 20 minutes
• 🚚 Freight flows expected to shift toward domestic & nearshore lanes

The Full Tariff List

Here are the newly issued tariffs by country:

Economist Tuan Nguyen provided a rundown of the countries with the steepest tariffs, saying:

"This will be a supply-driven shock with impact on prices and growth similar to what COVID and the Ukraine War had on the economy – negative on growth and positive on inflation."

Supply chain professor Jason Miller offered his take on the hardest-hit countries and apparel manufacturing.

"It would take at least 5 (probably 10) years to bring apparel production back in scale in the USA because the ecosystem needs rebuilt (machinery suppliers, textile suppliers). Who wants to make those investments when they could be rendered valueless at the waive of a hand? The net result can only be inflation for consumers. Who knew watching the CPI for apparel would become interesting!"

What the White House Is Saying

When asked about the tariffs' escalation, Secretary Scott Bessent stated:

"IF YOU RETALIATE, THERE WILL BE ESCALATORY TARIFFS. My advice to every country right now is: do not retaliate. Sit back. Take it in. Let's see how it goes. Because if you retaliate, there will be escalation. If you don't retaliate, this is the high watermark."

The Trump administration is calling the new tariffs a matter of economic emergency and a necessary correction to decades of what it sees as lopsided global trade. According to the official fact sheet:

• The tariffs will remain in place until the trade deficit threat is “resolved, mitigated, or satisfied.”
• The U.S. ran a $1.2 trillion trade deficit in 2024, which the White House calls an "unsustainable crisis."
• Trump’s economic playbook: "Made in America" isn’t a tagline—it’s a national security priority. The goal is to re-shore manufacturing and reduce dependency on foreign suppliers.
• The message to trading partners: Access to the U.S. market is a privilege, not a right.
• Officials say the tariffs are designed to spark a “Golden Age” of American manufacturing, reduce the trade gap, and strengthen economic sovereignty.

"Today’s action simply asks other countries to treat us like we treat them. It’s the Golden Rule for Our Golden Age." – White House Fact Sheet

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Economic Impact

• The stock market plunged, wiping out over $2 trillion in value within just 20 minutes of the announcement.
• Economists warn this could echo the Smoot-Hawley Tariff Act of 1930, which worsened the Great Depression.

What This Means for Freight

In the short term, we can expect:

• Drops in import/export volumes, especially with China and Vietnam.
• Increased prices on imported goods (e.g., Nike apparel and footwear).
• Shifting consumer sentiment and increased inflationary pressure.

Expect freight flows to shift toward domestic sourcing and regional trade zones. And for brokers and carriers: be ready for volatility.

Matt Silver, Co-Founder of Cargado, pointed out the opportunities presented to our North American neighbors:

"If you've been paying attention, cross-border trade with Mexico and Canada was already surging. With these tariffs, particularly on manufacturing powerhouses like China and India, the shift toward North American nearshoring is about to go into hyperdrive. Mexico and Canada aren't just the safe bets — they're the smartest investments on the table. Get ready. The North American trade renaissance is here."

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