Updates as of April 29th:

President Donald Trump has signed an executive order and a proclamation to ease auto tariffs. While the 25% tariff on imported cars remains unchanged, a new 25% tariff on auto parts will be implemented starting this weekend 3.

The new fine print includes provisions for reimbursements to domestic car producers importing car parts. These reimbursements will be capped at 3.75% of the value of domestically produced cars for the first year, decreasing to 2.5% in the second year 3. Additionally, cars containing 85% parts that comply with the United States-Mexico-Canada Agreement (USMCA) and produced domestically will effectively avoid tariffs.

 

In the meantime, on the global scale:

  • China Eases Tariffs on Select US Goods: China has recently waived tariffs on US ethane imports, allowing Beijing to maintain a firm public stance while offering some relief.
  • US-China Tariff Negotiations: President Trump has stated that the US will not drop tariffs on China without something substantial in return. He emphasized the need for China to be more open to US businesses and products.
  • Tariff Talks with India: US Treasury Secretary Scott Bessent mentioned that India is likely to finalize a bilateral trade agreement with the US to avert reciprocal tariffs.
  • Economic Impact: The ongoing tariff policies have led to a turbulent economy, with China’s manufacturing activity falling to a near two-year low.

 

Recent Developments: Global Reactions and Market Impacts

Since the announcement, several key developments have emerged:

● China’s Retaliation: China has increased reciprocal tariffs on US goods to 84%, significantly impacting US exports to China.
● European Union’s Response: The EU imposed 25% tariffs on a range of US imports as a countermeasure.
● Tariff Adjustments: President Trump authorized a 90-day pause on reciprocal tariffs for most countries, except China, where the tariff rate increased to 125%.
● Stock Market Surge: The US stock market surged, gaining $4 trillion in value after the announcement of a 90-day pause on tariffs for over 75 countries. 

Introduction

In April 2025, President Trump announced a series of new tariffs aimed at addressing trade imbalances and protecting American industries. These tariffs, which vary by industry, have significant implications across sectors. This article not only explores the specific impacts on the automotive, machinery, food and beverage, medical devices, and pharmaceutical industries but also highlights the strategic role that Consea’s executive search and human capital consulting services can play in helping companies navigate these turbulent times.

 

Automotive Industry: A 25% Tariff Shock

The automotive sector now faces a 25% tariff on imports, prompting immediate disruptions—Stellantis, for instance, has already announced temporary layoffs in the US and production suspensions in Mexico and Canada. These underline challenges the need for resilient leadership.

 

Machinery Industry: Rising Costs and Supply Chain Disruptions

Tariffs on steel and aluminum have driven up costs for the machinery sector, impacting production schedules for giants like Caterpillar and John Deere. Supply chain delays are becoming a norm, threatening profitability and operational efficiency.

 

Food and Beverage Industry: Tariffs on Italian Imports

With a 20% tariff now imposed on imports, the food and beverage industry faces steep cost pressures—illustrated by coffee brands like Lavazza planning to shift to 100% US production. Such policy changes force brands to re-evaluate their sourcing and supply chain strategies.

 

 Is Made in Italy in Danger?

Our expertise helps companies balance tradition with innovation, ensuring that cherished brands continue to thrive even in a challenging regulatory landscape.

 

Medical Devices: Global Supply Chain Challenges

Medical device manufacturers are grappling with tariff-induced cost increases on globally sourced components. These challenges can delay production and reduce the availability of critical medical technologies.

 

Pharmaceutical Industry: An Exemption Amidst Uncertainty

While the pharmaceutical industry currently enjoys a tariff exemption, the potential for future policy changes requires vigilance.

 

For These Issues, and Others, Consea is Qualified to Help

Consea leverages decades of global expertise and a tailored, relationship-driven approach to help companies navigate the disruptive effects of new tariffs. By identifying and recruiting agile leaders equipped to manage supply chain challenges and operational shifts, we enable businesses to adjust quickly to economic pressures. Our integrated executive search and human capital consulting solutions offer strategic guidance that not only fills critical leadership gaps but also supports long-term growth and resilience in a volatile market.

 

A Confident Partner in the Face of Uncertainty

The new US tariffs present significant challenges across multiple industries, but with strategic planning and the right executive talent, companies can navigate these obstacles and continue to thrive. Consea’s expertise in both executive search and human capital consulting is critical in supporting businesses through these transitions by providing leaders who drive innovative, agile responses.

 

Take the next step : Contact Consea today for a complimentary, industry-specific tariff impact consultation to learn how we can tailor our executive search and consulting solutions to safeguard your business and drive success in this volatile market.


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