With international trade policies evolving in real time, note that the information below on specific tariffs may have changed. The important thing to remember is that we are monitoring and adapting to protect IPS projects and clients, and we will keep you informed along the way.
April 2025
Kevin R. Batche Vice President, Procurement & Logistics IPS-Integrated Project Services & Robert Wohltjen, Director, Logistics
As the global economy enters a new phase of protectionism and policy realignment, the U.S. government has introduced new tariff structures that are reshaping international trade dynamics. One of the most impactful changes is the institution of a base-level 10% tariff on all imported goods and materials. The move has major implications for international trade and signals a rapidly shifting trade environment across regions.
Countries such as the European Union, China, Switzerland, the United Kingdom, and Mexico are among those most affected by the evolving tariff structures. For example, imports to the U.S. from the EU now face a 20% tariff, while Chinese goods are subject to a combined tariff rate of 54% due to the addition of a new 34% levy on top of a previously existing 20%. Switzerland follows closely with a 31% tariff. The United Kingdom and Mexico are both subject to the standard 10% rate, though in Mexico’s case, this is dependent on earlier tariff frameworks. Canada’s situation remains fluid, with tariffs temporarily delayed pending the outcome of a Senate vote.
Insights we gathered recently at Interphex, a leading pharmaceutical and biotech trade show, revealed a more optimistic stance from Canadian suppliers.
In interviews conducted during the event, several Canadian vendors confirmed that any future tariffs imposed on Canadian exports to the United States would not be passed on to U.S. customers. According to these suppliers, the Canadian government has vowed to cover the cost of tariffs to support economic stability and preserve cross-border business continuity. This approach could help stabilize trade relationships and reduce disruption for customers on both sides of the border, at least in the near term.
The announcement of these tariffs has prompted a frantic effort among importers to expedite shipments before retaliatory measures go into effect on April 9, 2025. Companies are moving quickly to push equipment and goods across borders ahead of this deadline to avoid the surge in costs. This rush has strained freight networks and logistics providers while driving up shortterm shipping rates.
For companies like IPS and their international customers, the new tariff environment has led to a noticeable rise in landed costs. Clearing customs has also become more challenging, with increased documentation requirements and longer processing times. These delays are causing ripple effects across construction timelines and procurement planning.
In response to these changes, we see our vendors increasingly move away from the Delivered Duty Paid (DDP) shipping model, in favor of Deliveredat-Place (DAP) terms. This puts more responsibility for customs clearance and tariff payments onto buyers— typically clients and EPCM firms. This transition introduces new complexities and liabilities for project stakeholders already under pressure to control costs and schedules.
The situation remains highly fluid and subject to rapid change. The global tariff environment has been marked by retaliatory actions, political maneuvering, and evolving government policies. The IPS Procurement & Logistics team actively monitors these developments on a daily basis, ensuring that all stakeholders are informed in real time and that sourcing strategies can adapt quickly. This proactive approach allows IPS to stay ahead of shifting regulations, avoid unnecessary costs, and maintain project continuity across a diverse portfolio of clients and regions.
In addition to tracking global developments, the IPS Procurement & Logistics team is closely monitoring both existing and pending CAPEX projects for its clients. The team is aggressively focused on multi-region sourcing strategies, aiming to minimize exposure to tariff risk while ensuring supply chain reliability. To support this effort, comprehensive tariff impact studies have been developed—or are currently underway—for all major capital projects, allowing IPS clients to make informed decisions based on the evolving cost landscape.
The increased demand on domestic suppliers, as companies look to avoid tariffs, has already begun to strain availability and lead times. Meanwhile, additional protectionist measures are under discussion in several countries —such as potential fees on Chinesebuilt or flagged vessels entering certain ports—which could expand the impact from goods to transportation infrastructure. These discussions illustrate just how dynamic and farreaching the situation has become.
Agility and awareness are critical for businesses operating in the international trade and manufacturing sectors. Strategic supplier diversification, contract restructuring, and close collaboration with logistics partners will be essential to navigating this turbulent environment. The Q2 2025 tariff changes are more than just a policy adjustment—they represent a broader transformation in how international business is conducted.
With vigilant oversight, rapid response capabilities, and a deep commitment to strategic support, IPS remains fully engaged in managing this evolving challenge and guiding clients in all markets through every stage of their project lifecycles.