A flurry of new tariffs and other measures have reshaped the global trade landscape as the Trump administration launches its second term with a forceful reassertion of tariff-driven policy. In a recent Venable webinar, partners Ashley Craig, Liz Lowe, and Will Nordwind, alongside senior policy advisor Nick Choate, offered a detailed breakdown of these seismic shifts.
Lowe opened with a stark reality for importers: "Certain goods from China, in particular steel and aluminum goods, could be subject to a total of 70% in tariffs… you could end up with Chinese products that have a tariff of almost 100% if the tariffs related to Venezuelan oil purchases takes effect."
The administration's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs marks a departure from past practice. China's response was swift: new export controls, retaliatory tariffs on agriculture and other products, and a growing unreliable entity list. Canada, too, struck back with $ 30 billion in retaliatory tariffs in response to the Section 232 Steel and Aluminum tariffs and an additional $30 billion in response to the IEEPA tariffs, even after the U.S. exemptions for USMCA products was announced.
New Ship Tax and Maritime Policy Face Industry Pushback
Beyond traditional tariffs, non-tariff measures are now redefining U.S. maritime policy. Craig detailed a proposed Section 301 remedy stemming from a petition originally filed during the Biden administration: a controversial surcharge of $500,000 to $1.5 million per vessel call, per U.S. port on all Chinese-built ships. The tax would apply not only to Chinese operators, but also to non-Chinese operators that have in their fleet Chinese built vessels. Craig warned of far-reaching impacts: "All of the major container operators have Chinese built vessels in their fleets," and smaller ports may be bypassed altogether if carriers adjust routes to avoid the fees.
Craig also spotlighted the proposal's requirements that U.S. exporters increasingly shift to U.S.-built, U.S.-flagged, and U.S.-crewed vessels over a seven-year period, beginning at single-digit percentages and climbing to 15%. "This may not actually be practical," Craig said, citing the limited capacity of the U.S. merchant marine fleet and shipbuilding yards.
Congressional Silence and Quiet Advocacy
While administrative actions mount, Congress will likely continue to publicly support the administration's actions. "The Republican majorities in the House and Senate are unlikely to publicly challenge Trump policies broadly," said Choate. Members are aware, however, of concerns being expressed by their constituents.
Consequently, Choate and Nordwind encouraged engagement. "Our advice is to go try to at least get the case made regarding your particular industry," Nordwind said, noting that even absent a formal exemption process, "constituent outreach to the administration" could influence future changes. Craig echoed the point: "It's important to keep eyes also on how streamlining and the activities of DOGE will impact trade agencies that are involved in facilitation and support."
To learn more about upcoming webinars or watch past recordings from our series, Transition Outlook: What to Expect from the Second Trump Administration, click here. The weekly webinar series runs through mid-April 2025.