www.supplyrisk.com
U.S. to Impose Tariffs on Key Trading Partners Feb. 1
KEY POINTS
- U.S. to levy 25% tariffs on Canada/Mexico, 10% on China.
- President Trump expands tariff threats to EU, BRICS nations.
- President Trump plans new tariffs on chips, pharmaceuticals, metals, and energy, adding to existing duties, which would begin mid-February.
- Health systems use SRS tariff reports to gauge exposure.
U.S. tariffs on Canada, Mexico and China set for Feb. 1 spark retaliation threats, as Trump expands tariff threats to EU and BRICS nations.
President Trump will impose sweeping new tariffs on imports from Canada, Mexico and China beginning Saturday, intensifying trade tensions with key U.S. partners. The White House said the tariffs will amount to 25% on Canadian and Mexican goods and 10% on Chinese imports, a move aimed at curbing illegal fentanyl shipments and protecting U.S. economic interests. Economists warn the measures could disrupt supply chains and increase costs for businesses and consumers. The tariffs on the nation’s three largest trading partners would affect $1.4 trillion in imports without exemptions, the Tax Foundation said.
The moves threaten to unravel delicate trade relationships under the United States-Mexico-Canada Agreement (USMC), with both Canada and Mexico vowing swift retaliation. Canadian Prime Minister Justin Trudeau, who is mobilizing provincial leaders to lobby Washington, warned that Canada stands “ready with a forceful and immediate response,” while Mexican President Claudia Sheinbaum indicated her government has prepared countermeasures. Economists say this cycle of tariffs and counter-tariffs could ripple through North American supply chains that have become increasingly integrated since USMCA took effect.
President Trump also signaled his intention to expand the tariffs to Venezuela and the European Union and BRICS countries. “We want to do something with Venezuela,” he said, before turning to planned EU tariffs. “I will impose tariffs on the European union. Absolutely will put tariffs on the EU.”
His comments on BRICS nations included a proposed 100% tariff rate, tied to concerns over the group’s potential development of an alternative currency. “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER,” Trump warned in a Truth Social post on Thursday.
U.S. companies in critical industries are bracing for heightened trade restrictions as former President Trump signaled plans to impose additional tariffs on computer chips, pharmaceuticals, metals, and energy products by mid-February. “That’ll happen fairly soon, I think around the 18th of February,” Trump told reporters in the Oval Office. These new tariffs would add to existing duties, increasing pressure on affected sectors. On pharmaceuticals, Trump emphasized his commitment to reshoring production: “We’re going to build a tariff wall to bring pharmaceuticals back to America,” he said. “The way to do that is by putting up a wall—a tariff wall.”
Healthcare executives are increasingly focused on understanding the origins of their purchased products and are exploring near-shore manufacturing options with increased urgency.
Key SRS reports are assisting health systems by mapping their purchased products, offering crucial insights into their supply chain footprint:
- Products by Country (Tariff Risk) – choose any country to see which items you buy are manuctured there (in the Prevent dashboard)
- “Products Subject to China Tariffs” – downloads current section 301 tariffs on healthcare item made in China (in the Prevent dashboard)
- “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier)
- “Supplier Geopolitical Summary” – summarizes exposure for all countries (in the Respond dashboard)
If you have not yet tailored SRS to list manufacturing sites for the products you buy, it’s simple to do so if you have a subscription to SRS. Email support@supplyrisk.com for instructions.
For more information, see:
CNN, Trump will impose new tariffs on Mexico, Canada and China on Saturday, White House says, January 31
MSN, Trump reasserts towering 100% tariff threat against BRICS countries, January 31
MSN, Trump says he is planning oil and gas tariffs around Feb. 18, January 31
FX Street, US President Donald Trump: I will impose tariffs on the EU, January 31
U.S. News, Exclusive-Trump Set to Impose Tariffs on Mexico, Canada Starting on March 1, Sources Say, January 31
Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21
Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13
Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2
Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15
Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11
Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28
White & Case, United States Finalizes Section 301 Tariff Increases on Imports from China, September 17
Supply Risk Solutions, Biden Raises Tariffs on Key Chinese Imports to Bolster U.S. Industries, May 20
