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From sweeping tariffs to landmark court cases and a sharp rise in enforcement actions, trade professionals found themselves navigating not just global markets but political agendas, legal battles and regulatory crackdowns. And through it all, the supply chain continued to evolve—strategic sourcing became a priority, and compliance moved from the back office to the front lines.
Whether you ship goods overseas, manage inbound freight or oversee global compliance, the events of 2025 likely touched your operations in some way. In this Year in Review, we break down the biggest trade stories of the year, followed by a list of other key developments that may shape your planning for 2026 and beyond.
In 2025, President Trump transformed the global trade landscape with sweeping tariffs that touched nearly every U.S. trading partner. From kitchen cabinets to cars, and from Europe to Southeast Asia, new duties disrupted supply chains, forced re-sourcing decisions and challenged compliance teams to keep up with the pace of change.
By year’s end, nearly half of all U.S. imports were subject to new or elevated tariffs, according to New York Times analysis of Census data. Emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA) alone affected 29% of imports, leading to a major Supreme Court case that could redefine presidential trade powers. Justices appeared skeptical, and a 2026 ruling could trigger refunds for duties already paid.
Meanwhile, China, Canada, Mexico and over 90 other countries faced a rotating cast of tariff hikes and pauses throughout the year. The administration used a mix of national security claims (under Section 232), drug enforcement concerns and trade leverage to justify duties.
One especially impactful policy shift: CBP’s decision to end the de minimis exemption for Chinese-origin goods, requiring full customs declarations even for low-value shipments under $800.
Though connected to No. 1, the whiplash-inducing relationship between the U.S. and China deserves its own spot on this list. Throughout the year, the two economic giants clashed over tariffs, advanced chips, rare earth minerals, shipping and export controls—only to reach a fragile framework deal in October after a high-stakes meeting between President Trump and Chinese President Xi Jinping.
The year started with tariffs on Chinese imports soaring to 145%, prompting China to retaliate with its own restrictions and port charges. Both countries began charging fees on each other’s merchant ships docking in their ports, escalating supply chain costs and raising the risk of broader maritime friction.
One of the sharpest points of conflict: semiconductors. The U.S. doubled down on export controls aimed at blocking China’s access to advanced chips used in artificial intelligence and high-performance computing.
In the midst of the crackdown, the Bureau of Industry and Security (BIS) briefly introduced the so-called "Affiliates Rule", which would have significantly expanded restrictions on foreign companies tied to Chinese military-linked firms—only to suspend it weeks later after industry backlash. (Watch our free webinar to learn why you still need to understand this rule.)
Despite months of tension, the Trump-Xi meeting resulted in a temporary easing of tariffs, a pause on new shipping restrictions, and the establishment of a limited dialogue on rare earths and strategic exports. But the deal left many questions unanswered, with no enforcement mechanism or long-term certainty.
While tariff headlines dominated in 2025, some of the most consequential developments for U.S. importers and exporters happened quietly—in courtrooms and enforcement offices. This year saw a sharp escalation in trade-related investigations and penalties, with the U.S. government using new tools and old laws in aggressive new ways.
The Department of Justice (DOJ) and Customs and Border Protection (CBP) expanded their focus on import fraud schemes involving undervaluation, misclassification and transshipment. One of their primary weapons: the False Claims Act (FCA), which allows the government—or whistleblowers—to pursue companies for knowingly submitting false information to avoid duties or taxes.
Why the shift? Officials say trade enforcement now serves both economic and national security priorities—particularly as export controls tighten and tariff revenues grow. DOJ leaders have publicly committed to expanding investigations in the trade space, and CBP has been stepping up audits and data analysis to catch patterns of fraud.
Amid all the policy shifts and enforcement crackdowns, the trade numbers told their own story in 2025: U.S. trade patterns are evolving, but the structural deficit isn’t going away.
The U.S. trade deficit remained high throughout the year, despite mid-year drops in imports from China and moderate export growth to regional partners. Nearshoring trends continued, with Mexico and Southeast Asia gaining share as alternative suppliers. But shifting sourcing didn’t eliminate long-standing imbalances in manufactured goods.
Perhaps the most telling realignment came from abroad: In late 2025, China overtook the United States as Germany’s largest trading partner, marking a symbolic shift in the global trade map. While the U.S. remains deeply tied to Europe, the move suggests that EU–China trade relations may continue to deepen, especially in sectors like EVs, chemicals and industrial equipment.
Meanwhile, U.S. companies trading globally faced headwinds from currency volatility, tariff uncertainty and fragmented regulatory regimes—all of which complicated cost forecasting and supply chain planning.
The October 2025 government shutdown led to processing backlogs at the Bureau of Industry and Security (BIS) and Directorate of Defense Trade Controls (DDTC), delaying export licenses for dual-use and defense-related goods. While short-lived, the disruption spotlighted the fragility of key export control systems.
The Office of Foreign Assets Control (OFAC) expanded financial and recordkeeping obligations for transactions involving sanctioned parties and jurisdictions. Trade finance professionals and compliance teams must now retain documentation longer and under broader definitions of “facilitation.”
✅ Tip: Expanded OFAC recordkeeping rules mean more exposure to enforcement risk—even if you didn’t know a party was sanctioned. Using Restricted Party Screening Software ensures you automatically check customers, suppliers and financial partners against up-to-date government lists—and document every screening for audit protection. Get your free trial here.
At the 2025 BIS Update Conference, officials advised U.S. exporters to obtain end‑use and end‑user statements for every export, including items classified as EAR99. While EAR99 goods are usually low‑risk, expanding controls and rising enforcement make these statements a valuable layer of due diligence. Exporters may soon find that routinely collecting them helps identify red flags—and provides important protection if questions arise later.
If 2025 was a year of volatility and enforcement, 2026 may be a year of reckoning and recalibration. With key legal decisions pending, an election year underway, and global alliances continuing to shift, U.S. importers and exporters should expect more uncertainty—and higher stakes.
The ruling on the IEEPA tariff challenge could come in early 2026. If the Court curbs presidential powers, some emergency tariffs could be rolled back—or open the door to refunds. If upheld, expect the executive branch to double down on unilateral trade actions.
Following a year of aggressive enforcement under the False Claims Act and FCPA, expect customs audits, origin verifications and valuation challenges to expand further in 2026. DOJ and CBP have signaled these efforts will continue—and likely increase.
✅ Tip: Want to avoid penalties from valuation or origin audits? Use our Product Classification Software to ensure HTS and ECCN accuracy—before the audit happens. Try it free.
The trend toward nearshoring and regional trade diversification is expected to accelerate. U.S. companies will likely continue shifting sourcing from China to Mexico, India and Southeast Asia—but must manage new sets of rules, documentation and partner risks.
Compliance is no longer an afterthought. It’s a core part of trade planning—and the companies that invest in getting it right are the ones that will avoid fines, prevent disruptions, and maintain customer trust.
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2025 reminded us that global trade is no longer just about moving goods from Point A to Point B. It’s about navigating a constantly shifting landscape of tariffs, regulations, enforcement priorities and geopolitical power plays. For U.S. importers and exporters, this past year demanded more than operational efficiency—it required vigilance, adaptability and a firm grasp on compliance fundamentals.
As we head into 2026, the pressure isn't likely to ease. At Shipping Solutions, we’re committed to helping U.S. exporters and importers stay informed and ready. Our free webinars, whitepapers, and export forms offer practical, easy-to-use guidance for trade professionals. And for companies that need extra support, our standalone compliance tools—including product classification, restricted party screening, a landed cost calculator and export control screening—make it easier to stay compliant and avoid costly mistakes. Finally, don’t forget to subscribe to our YouTube channel, where we post videos each week to help you stay caught up with the latest trade news.
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