By Eva Richardson
March 3, 2025 – The global logistics sector is bracing for significant disruptions as U.S. President Donald Trump confirms new tariffs on imports from Mexico, Canada, and China. The decision, officially set to take effect on March 4, will impose a 25% tariff on goods from Canada and Mexico, while an additional 10% tariff on Chinese imports will further escalate trade tensions.
Tariffs to Combat Illegal Trade
According to President Trump, these measures are primarily aimed at curbing illegal drug trafficking and immigration. In a statement released on Truth Social, he justified the tariffs by citing the “unacceptable levels” of drug flow into the U.S. from its neighboring countries. He also accused China of being a key supplier of illicit substances entering the United States.
“More than 100,000 people died last year due to the distribution of these dangerous and highly addictive poisons. Millions have suffered over the last two decades. The tariffs will remain in place until this crisis is controlled,” Trump stated.
Concerns Over Economic Impact
While the administration argues that these tariffs will serve as a deterrent, industry experts and global trade organizations fear the move will have severe economic consequences.
Freight and logistics companies, particularly in the air cargo sector, warn that these additional costs will increase operational expenses and disrupt global supply chains. The International Air Cargo Association (TIACA) recently forecasted a 5% increase in demand for 2025 but acknowledged that “elevating risks”—such as these tariffs—could threaten growth projections.
Glyn Hughes, Director General of TIACA, expressed concern over the growing politicization of trade policies. “Tariffs are being weaponized in political forums, and this introduces volatility into international trade. Economic integration should be the priority, as it is the best path to prosperity and stability,” he commented.
EXPERT INSIGHT: The Real Cost for Logistics Companies
To understand the immediate impact on logistics operations, The Logistic News spoke exclusively with Mark Davidson, CEO of Global Freight Solutions, a leading international logistics provider. According to Davidson, the biggest challenge will be the rising operational costs for freight forwarders.
“We are already seeing increased costs in ocean and air freight due to fuel price volatility and geopolitical tensions. Adding these tariffs means that companies operating between North America and Asia will face price surges that will inevitably be passed down to consumers,” Davidson explained.
Davidson also warned that some logistics companies might be forced to restructure their supply chains to avoid the additional costs. “Companies will need to diversify their sourcing strategies and look at alternative routes, such as increasing trade with Latin American or European suppliers to offset these tariffs.”
Potential Trade War with China
China has already vowed to implement countermeasures in response to the latest round of U.S. tariffs. This comes at a time when the U.S. is set to reintroduce restrictions on the de minimis exemption for Chinese goods, further complicating trade relationships.
Reports suggest that U.S. Customs and Border Protection (CBP) is preparing additional administrative requirements for e-commerce shipments, which could significantly increase compliance costs. “A filing for an e-commerce shipment worth $5 could now require an additional $5–$10 in administrative fees, impacting inbound e-commerce flows,” Hughes added.
Uncertain Future for Trade and Logistics
With additional tariffs looming over the European Union, many logistics companies are bracing for further instability. The Conference Board, a U.S.-based research group, reported that consumer confidence is declining, partly due to concerns over rising inflation and increased costs linked to these trade policies.
As global supply chains adapt to these new trade barriers, companies must rethink their sourcing and distribution strategies to mitigate potential losses. Industry stakeholders are now calling for negotiations and a balanced approach to international trade rather than a continued cycle of retaliatory tariffs.
With March 4 just around the corner, the world will be watching closely to see how these measures impact both global markets and the logistics industry in the weeks to come.
