Industrial insights

In February 2025, President Trump reinstated the full 25% tariff on steel imports and increased aluminum tariffs to 25%, eliminating all previous exemptions and alternative agreements. This action expanded the tariffs to include key downstream products and terminated all general approved exclusions. Analysts expect these tariffs to lead to price hikes in vehicles, canned and other consumer products, and construction projects especially. But, if the first round of steel and aluminum tariffs are indicative, U.S. producers generally saw economic gains, job creation, while international companies faced increased costs and market uncertainties. For CPG, Industrial, Automative, and Construction sectors especially, proactive agility and consistent monitoring will be necessary to reduce exposure to global supply chain volatility and increased costs

The “America First” agenda under President Trump’s second term, particularly its trade and tariff policies, will significantly impact China’s economy, trade dynamics, and geopolitical strategy. As China retaliates, management teams must stay informed and proactively develop strategies that will serve their companies’ interests in the short- and long-term. Moreover, with the changing global landscape and supply chain strategies, companies should consider the intersection of natural security with ESG, Sustainability, and Climate.