Permanent link for What Michigan Businesses Need to Know About the 2025 Tariff Changes on May 22, 2025

As the global trade landscape continues to shift, 2025 has already brought significant changes that Michigan international businesses—large and small—must carefully navigate. With new tariff measures officially in effect, including reciprocal tariffs and expanded duties on key industry sectors, it's more important than ever to stay informed and proactive.

What Are the New Tariffs?

10% Baseline Reciprocal Tariffs (Effective April 5, 2025)
The United States has implemented a baseline 10% tariff on all imported goods unless a country-specific rate applies. This reciprocal tariff policy was introduced to level the playing field with trading partners who impose higher tariffs and non-tariff barriers on U.S. products.

Country-Specific Tariffs

• China: 30% tariffs on electric vehicles, lithium-ion batteries, solar cells, and critical minerals. Some goods may be subject to 90-day delayed enforcement, creating a short compliance window.
• Canada and Mexico: 25% tariffs on certain steel and aluminum imports despite USMCA Free Trade Agreement provisions. Additional tariffs of 10% apply on other specific Canadian goods.
• European Union: 20% tariffs on certain EU goods, with a 90-day pause period to determine long-term enforcement strategies.

Industry-Specific Tariffs

• Steel and Aluminum: 25% tariffs remain in place under Section 232 national security measures.
• Semiconductors, Medical Supplies, and Wood Products: Ongoing investigations could lead to new tariffs or trade restrictions later in 2025.

Maritime and Transportation Measures

• New fees on Chinese-owned shipping companies and higher inspection fees at U.S. ports are scheduled for implementation later this year, adding logistics cost considerations for importers.

What Does This Mean for Michigan Businesses?

Increased Import Costs - Michigan is home to a wide range of industries that rely heavily on imported raw materials to make their finished goods, from automotive components and machinery to consumer products, to name a few. With the implementation of new and higher U.S. tariffs, businesses can expect to see a rise in landed costs, which include the product price, shipping, duties, and customs fees. This can impact pricing, profit margins, and overall competitiveness.

For example, U.S. manufacturers that source steel, aluminum, batteries, or electrical components from China or the EU could face additional costs of 10% to 30% or more. Businesses should consider conducting a cost analysis to understand how the U.S. tariffs might affect their bottom line and explore options for mitigating these increases through supplier negotiations, pricing adjustments, or consider buying from other U.S. manufacturers.

Supply Chain Adjustments - Rising tariffs may require Michigan businesses to rethink their sourcing strategies and supply chain models. Businesses heavily reliant on imports from tariff-affected countries like China, Canada, or the European Union may face production delays or increased costs that threaten delivery timelines and customer satisfaction.

This creates an opportunity to:

• Evaluate alternative suppliers in countries not currently impacted by new tariffs.
• Explore domestic U.S. sourcing or reshoring opportunities to reduce reliance on international supply chains.
• Partner with logistics experts to optimize shipping routes and avoid unexpected costs, such as new maritime fees on Chinese-owned shipping companies scheduled for later this year.

Taking a proactive approach now can help businesses maintain operational continuity and build more resilient supply chains.

Compliance Obligations - As tariffs and trade policies change, staying compliant with U.S. Customs and Border Protection (CBP) requirements is critical. Incorrect tariff classifications, missed duty payments, or failure to comply with new documentation requirements could result in penalties, shipment delays, or reputational damage.

Businesses should:

• Review their current import practices with a licensed customs broker or trade consultant.
• Ensure that product classifications (HTS codes) are accurate and up-to-date.
• Monitor official government updates through resources like the Federal Register, Cargo Systems Messaging Service, and United States Trade Representative to stay ahead of changes.

Regular and ongoing training and updates for supply chain, procurement, and create compliance teams will also help reduce the risk of costly trade mistakes.

Strategic Opportunities

While tariffs present challenges, they also open the door for Michigan businesses to build new competitive advantages. Companies that adapt quickly may be able to:

• Strengthen and build new relationships with domestic/U.S. suppliers and manufacturers, boosting local economies.
• Explore new international markets less affected by tariffs to diversify revenue streams.
• Explore of programs like Duty Drawback, which refunds certain duties paid on imported goods that are later exported.
• Leverage state resources such as the Michigan Economic Development Corporation (MEDC) for supply chain diversification support, export assistance, and market research.

With the right strategies in place, Michigan businesses can turn today’s trade challenges into tomorrow’s growth opportunities.

How to Stay Informed and Proactive

Remaining compliant and competitive in today’s trade environment requires diligent monitoring of regulatory developments. Below are trusted resources to help Michigan businesses navigate these changes:

Essential Resources

1. Van Andel Global Trade Center Tariff Dashboard - Stay current with summarized updates and expert insights.
2. Presidential Executive Orders - White House - Access the latest official executive actions impacting trade policy.
3. Federal Register - Review legal notices on tariff changes and trade regulations.
4. U.S. Customs Cargo Systems Messaging Service (CSMS) - Sign up for direct updates on import requirements and system changes.
5. Office of the U.S. Trade Representative - Stay updated on trade negotiations and enforcement actions.
6. Michigan Economic Development Corporation (MEDC) - Explore local support programs, including supply chain assistance and export expansion resources.

Need Help Navigating These Changes?

Grand Valley State University’s Van Andel Global Trade Center is here to support Michigan businesses in navigating the complexities of global trade compliance and international/global market opportunities. From customized consulting to hands-on training, our team is ready to help you strategize and succeed.

Connect with us at gvsu.edu/vagtc for assistance and to explore available resources.

Categories: Tariffs
Posted on Permanent link for What Michigan Businesses Need to Know About the 2025 Tariff Changes on May 22, 2025.