Well, here they are – and maybe there they go, at least a couple of them. Tariffs figured significantly in President Trump’s campaign, and he wasted little time in springing them.

Of course, we’ve been hearing about them in prospect, and since President Trump announced, on February 1, 2025, which was a Saturday, that tariffs of 25% would be imposed on Canadian and Mexican imports, and of 10% on Chinese imports, effective at 12:01 AM Tuesday, February 4, we might be forgiven for channeling our inner Jan Brady (it dates, us, but don’t most of us remember, “Marcia, Marcia, Marcia!”).

We might also be forgiven for feeling a touch of mental whiplash. By the end of Monday, February 3, announcements from President Trump, Mexico’s President Claudia Sheinbaum, and Canada’s Prime Minister (still, if temporarily) Justin Trudeau confirmed that, following negotiations, concessions from Mexico and Canada on border issues, and agreements between these countries and the U.S., that the tariffs imposed on these countries have been paused for 30 days.

During that time, working groups on both sides, in each case, will work toward a more permanent agreement to avoid the imposition of these tariffs.

Predictably, China is another cup of tea entirely. More on that below.

However, there is much that needs to be hammered out, and 30 days is a short window of time.

And we strongly recommend you take precautions now to protect your business as much as possible:

How Can I Protect My Business Against Tariffs’ Impacts?

You may know, or you may not, whether your suppliers rely on Canadian, Mexican, or Chinese imports.

Find out.

Review all contracts carefully – if you have any questions, run them by your virtual CFO or other trusted business advisor.

This is especially critical to those with long-term pricing commitments.

Check the provisions in your contracts on force majeure and any other provisions which might open up the possibility of re-negotiation.

Get in touch with your suppliers:

• Discuss any options for sourcing products or raw materials either domestically or from countries not subject to tariffs.
• Negotiate with those suppliers affected by the tariffs – can they perhaps absorb the increased cost? Possibilities include price concessions and/or volume discounts.
• Discuss potential timing and logistical concerns (think increased U.S. Customs scrutiny) with your suppliers.
• Be in contact with logistics providers to ensure you dot every ‘i” and cross every “t” you can.

Cultivate and discuss your concerns and issues with transfer pricing experts, consultants with expertise in tariffs, and international tax professionals. Do this as soon as possible. They can potentially help you with rules on:

• Country of origin
• Product classification
• Exemption requests.

All these were critical in developing effective strategies for businesses back in 2018, when then-and-now President Trump imposed tariffs before.

Last, but not least in importance, ensure you have a consistent communication strategy – with your suppliers, your customers / clients, and your team. Every stakeholder concerned in this issue should have the same clear understanding of your stance and strategy.

Now, what response to President Trump’s tariffs did each country make? What concessions, if any, were offered?

Mexico

President Scheinbaum has announced the dispatch of 10,000 Mexican National Guard members to the U.S. border.

They will be charged with helping curb both illegal immigration and the inflow of fentanyl across the border.

Mexico has also agreed to accept reinstatement of the “Remain in Mexico” policy which requires asylum seekers to apply for that privilege from a nation outside the U.S., waiting there until their case has been adjudicated.

Canada

Prime Minister Trudeau is implementing a $1.3 billion border-security effort. This project was announced in December of 2024.

Canada has also promised to create a “fentanyl czar” to develop policies to address the drug’s impact, both internally and in regard to smuggling operations which send the dangerous substance across the U.S. border.

Canada has been ramping up efforts to increase border security over the past year (give or take a few months), and has shown significant progress with respect to illegal border crossings – the findings were shared with the new Administration here in the U.S.

China

China, of course, is a notorious non-appeaser. They hit back – and hard.

In response to the imposition of the new tariff, which did go into effect at 12:01 AM on Tuesday, February 4, 2025, the ruling Chinese Communist Party (CCP) announced that they will challenge this new tariff with the World Trade Organization.

In addition, China has imposed a retaliatory tariff of 15% on coal and liquified natural gas imported from the U.S.

New restrictions on exports to the U.S. of certain minerals used in manufacturing high-tech products have been imposed as well.

And China is initiating an investigation into Google, ostensibly in connection with concerns over its supposed “monopoly.”

We believe President Trump is playing a potentially dangerous game; we will not attempt (certainly not at this point!) to predict long-term “winners” and / or “losers.”

But tariffs so often result in higher prices that the real losers may be American businesses and consumers – at least in the short-term.

We urge you to work as diligently and swiftly as possible to “tariff-proof” you business, to the degree that is feasible.

If you have any questions on how tariffs might impact your bottom line, please give us a call – Rigby Financial Group is here to help you answer those questions and provide expert guidance.

But don’t neglect your other consulting needs with respect to tariffs – and we may be able to help you find the right contacts, too!

Please click here to email me directly – I and my team are always here for you!

Until next time –

Peace,

Eric