Regulatory Changes In 2025: What Shippers Need To Know
It’s safe to say supply chain podcasters won’t run out of things to talk about this year. With ever-evolving policies like the United States’ changing trade levies, experienced supply chain podcasts aren’t outlining podcasts, booking guests, or recording programs too far in advance. These days, material can be stale before it even airs!
Trust Supply Chain Now to keep abreast of the very latest developments on the compliance and trade fronts to keep podcast listeners up to date.
Tariffs: Keeping Up With Policy Shifts
The United States’ trade relationships with many countries around the world have become rocky under the new Trump administration. At the time of writing, President Trump had imposed 25% tariffs on all products from Canada and Mexico. Canada immediately responded March 4 with 25% tariffs on nearly $21 billion of U.S. goods, with levies on another $86 billion of American products promised by March 25. Two days later, Trump suspended the tariffs on most goods from Canada and Mexico and moved the implementation date to April 2.
The president also increased the tariff on Chinese imports from 10% to 20%. China retaliated with 15% tariffs on U.S. chicken, wheat, corn, and cotton and 10% tariffs on U.S. sorghum, soybeans, pork, beef, aquatic products, fruit, vegetables, and dairy products.
China also announced it would stop U.S. lumber imports, suspend the permits of three U.S. companies that export soybeans to the country, and conduct an anti-dumping investigation into American-made fiber optic products.
According to U.S. Commerce Department data, the United States imported $1.4 trillion worth of goods from Canada, Mexico, and China in 2024.
Yeti is among the companies moving production out of China to help mitigate the impact of tariffs. On an earnings call in mid-February, Yeti said it plans to shift 80% of its drinkware production out of China by the end of this year.
In the United States, trucking capacity tightened in late February, particularly at the northern and southern borders, as shippers tried to move goods prior to Trump’s March 4 tariff implementation date. But an Uber economist predicted capacity will soon become widely available as shippers hold off on moving cross-border freight in hopes the tariff dust will settle.
LTL Shippers Need Classes on Reclassification
LTL shippers want to know how the National Motor Freight Classification (NMFC) shift to a 13-class, density-based system in July is going to affect them. The classification changes will make it more important for shippers to record shipments’ density, weight, and dimensions, as well as the product’s NMFC item number and classification, and origin and destination ZIP codes, according to Trucking Dive.
XPO CEO Mario Harik said the LTL carrier is doing outreach and training with its customers to prepare them for the classification changes. “Some customers could have a slightly higher price, some customers could have a slightly lower price,” Harik said, on XPO’s Q4 2024 earnings call.
Other Regulatory Changes in the Pipeline
We expect a deluge of regulatory changes and policy shifts in 2025. Among the proposed changes in the pipeline that will affect shippers are:
- Automated Commercial Environment (ACE) electronic expert manifest (EEM) requirements. A decision is expected in March whether U.S. Customer and Border Protection (CBP) can require the advance submission of the EEM for cargo departing the United States by oceangoing vessel. CBP has said getting the data in advance would improve cargo safety and security without disrupting the flow of trade.
- Customs broker identification of importers. Also expected in March, this rule would require customs brokers to verify the identity of importers and create an identification process for customs brokers to follow. CBP said the regulation would help prevent fraud, help ensure customs brokers perform due diligence to verify importers’ identities, and standardize how customs brokers verify the legitimacy of new clients.
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