ERMSUSTAINABILITYINSTITUTESustainabilityTrendsQUARTERLY OUTLOOKApril 2025TREND 1U.S.tariffs trigger globaltrade disputesU.S tariffs have been the catalyst behind global tradeCompanies move to bolster supplydisputes in recent months,with developments moving atchains in the face of global tradelightning speed.disputesThe new US.administration first imposed new tariffs onChinese imports in February 2025,then applied tariffson Canadian and Mexican imports as well as all steelandaluminum imports.The U.S.also imposed a minimum 10Key takeawayspercent tariff on imports and reciprocal tariffs on closeEscalating trade disputes:to 60 countries that went into effect April 2,then pausedU.S.tariffs and target country responsesreciprocal tariffs for 90 days on all countries exceptChina a week later.There are likely to be more exceptionsescalate global trade disputes.and changes.At the time of writing.for example,smartphones and other electronics from China had beenCompanies feel the effects of trade tensions:exempted from tariffs,at least temporarily.about what's next influence corporateMany other countries have responded to U.S.tariffswith trade measures of their own.Canada,for example,Supply chai strategies evolve:4 and 25 percent tariffs on US.steel and aluminumCompanies are bolstering their supply chainsproducts on March 12.China imposed a 15 percent tariffto mitigate trade-related risks.on U.S.agricultural imports on March 10,which followedothers announced by China in February on US.importsU.S.clean energy impacts:of liquened natural gas (NG).crude oil,and farmThe U.S.clean energy industry is likely toequipment,among other goods.China also announced abe affected by trade disputes because of34 percent reciprocal tariff on April 4,which it has sinceraised to 104 percent,in retaliation to the U.S's reciprocalsuspended its own reciprocal tari ffs for 90 days,matchingthe mid-April 2025 US.position.changing daily.This lack of predictability of what thenext day will bring is sowing uncertainty in the globaleconomy and paralyzing decision-making.