What: Global trade enters unprecedented territory as new US tariffs target 60 countries, forcing retailers to adapt their entire operational model.

Why it is important: The comprehensive nature of these tariffs, affecting 44% of US imports, represents the most significant change to international trade since 1947, requiring immediate strategic adaptation from retailers.

The implementation of Trump's new tariff structure marks a pivotal moment in global trade, introducing a 10% baseline tariff alongside country-specific duties reaching up to 50%. This comprehensive policy affects the vast majority of the global economy, with strategic exemptions for pharmaceuticals, semiconductors, and certain resources. The impact extends beyond simple cost increases, fundamentally altering how companies must approach their operations and strategic planning. While Canada and Mexico maintain certain exemptions, they remain subject to earlier levies, creating a complex web of trade relationships. The stacking effect of these tariffs on existing duties, potentially reaching 74% for some countries, forces companies to completely reimagine their supply chains and manufacturing networks. This transformation requires businesses to develop new expertise in navigating multiple sets of bilateral agreements while building greater resilience into their operational models.

IADS Notes: Recent developments in the retail sector underscore the transformative impact of these tariffs. As reported in March 2025, 62% of consumers express serious concern about rising retail prices, while major retailers like Costco and Walmart actively pressure suppliers for concessions. The elimination of the $800 de minimis rule in February 2025 has disrupted e-commerce operations, affecting 4 million daily shipments. This aligns with BCG's January 2025 projection of $640 billion in additional import costs, forcing retailers to fundamentally restructure their supply chains, as evidenced by Shein's offering 30% higher procurement prices to relocate manufacturing to Vietnam. The impact extends to consumer behaviour, with March 2025 data showing 84% of Canadians reconsidering their purchasing strategies, indicating a broader shift in global retail dynamics.

There’s nowhere to hide as tariffs reshape global trade