U.S. Import Tariffs Update, February 28th, 2025
FF&E Trade & Tariff Outlook: Rising Costs & Supply Chain Adjustments
New Tariffs on Canada, Mexico, and China Reshape FF&E Trade
On February 27, 2025, Trump reinstated a 25% tariff on imports from Canada and Mexico, set to take effect March 4, 2025. Additionally, Chinese imports now face an extra 10% tariff, doubling the previous rate to 20%. These changes are forcing FF&E importers to reconsider their sourcing and logistics strategies.
Who Will Bear the Costs?
✔ Manufacturers may absorb some costs to stay competitive.
✔ Importers & Distributors will adjust pricing to offset expenses.
✔ End Customers—hotels, commercial buyers, and retailers—may see price increases.
Are There Viable Alternatives to China?
Vietnam, India, and Indonesia are expanding production, but challenges remain:
🚢 Infrastructure limitations affect large-scale manufacturing.
📦 Higher logistics costs due to longer transit times.
👷 Skilled labor shortages impact production efficiency.
Shifting Trade Routes: Are Alternatives Viable?
As tariffs on Chinese-built vessels rise, businesses are seeking alternative trade routes. While Canadian ports like Vancouver and Prince Rupert offer strong U.S. rail connections, severe congestion and capacity limits make bookings nearly impossible. Vancouver’s rail dwell times now stretch 15–20 days, while Prince Rupert faces berthing delays and rail dwell times of 7+ days, leaving little room to absorb additional freight.
Other routes, such as Mexico and Europe, also come with infrastructure constraints, longer transit times, and regulatory hurdles. With 25% tariffs on Canada and Mexico, importers must weigh whether rerouting actually saves costs—or simply adds more delays and complexity.
Strategic Planning for a Changing Market
With supply chains in flux, companies must evaluate their best path forward:
🔹 Absorb costs, adjust pricing, or pass expenses to consumers.
🔹 Optimize sourcing and logistics to mitigate tariff impact.
🔹 Leverage strategic partnerships to navigate trade disruptions.
JMC Global specializes in FF&E logistics, helping businesses adapt to shifting trade policies, optimize costs, and streamline global shipping solutions. Contact us today to explore strategies tailored to your supply chain needs.
Sources: U.S. Trade Representative (USTR), National Association of Manufacturers (NAM), Federal Register & International Trade Administration (ITA), World Bank & U.S. Census Bureau, Furniture Today & Industry Reports, John Crawley -- JMC Global Founder
Let us know how we can leverage our expertise to help you with your upcoming logistics needs.