Expeditors (EXPD) Status Update summary

Trade policy and tariff environment update

• Recent days have seen significant changes in U.S. tariff policy, including a new 25% tariff on autos and potential broad application of reciprocal tariffs to all countries, signaling rising protectionism and policy uncertainty.

• The U.S. aims to use tariffs as leverage to force trading partners to lower trade barriers, with risks of retaliation and economic pain both domestically and abroad.

• Immediate implementation of tariffs is expected, with April 2nd and 3rd as key dates for announcements and auto sector tariffs, and the use of IEEPA for broad, rapid action.

• Ongoing investigations and fast-tracked processes may lead to tit-for-tat escalation through 2025 and 2026, with the U.S. leveraging national security justifications for broad tariff powers.

• Major trading partners like China and the EU are central to U.S. strategy, with China facing up to 70% tariffs and the EU under pressure over digital and carbon policies.

Global responses and negotiation dynamics

• Countries are responding variably: Canada and Mexico have taken different approaches but ended with similar tariff outcomes, while India has succeeded through bilateral negotiation.

• Many countries remain in a wait-and-see mode, with exposure to U.S. trade and leverage differing widely.

• The U.S. economy's performance may influence the willingness to escalate or de-escalate trade tensions, especially with the EU.

• Southeast Asian countries could face reciprocal tariffs ranging from 10%-25%, depending on negotiation outcomes.

Trade regulatory monitoring and compliance services

• Onyx offers a trade regulatory monitoring service that tracks new regulations by HS code and geography, delivering tailored alerts and monthly digests to clients.

• The service helps clients filter relevant regulatory changes, saving time and providing early warnings on policy shifts.

• Alerts are delivered within 24 hours of new regulations, and monthly digests provide forward-looking analysis.

• Optional monthly briefings with analysts are available for deeper insights and Q&A.