As new ‘reciprocal’ tariffs imposed by the Trump administration are now in force on goods from more than 90 U.S. trade partners, navigating higher duties could be a permanent part of doing business, according to Vinny Licata, head of logistics at Fictiv.

President Donald Trump signed an executive order July 31 to implement a wide range of country-specific tariffs that began on Thursday.

“Companies are seeing tariffs as the new normal,” Licata told FreightWaves in an interview. “There were some pauses in orders earlier due to uncertainty, but now deals are being finalized, and orders are not being delayed as much. As we see more deals, that certainty will allow customers to understand the cost environment, so they can know the impact of all tariffs.”

The slew of new import levies include 50% for goods from Brazil, 39% for Switzerland, 35% for Canada, 30% for China and Mexico, 25% for India, 20% for Vietnam and Taiwan, 19% for Thailand, 15% for Germany and Japan, and 10% for the United Kingdom.

While U.S. tariffs are becoming more normalized for logistics professionals, the increased duties are having an impact on imports into the U.S., Licata said.

Fictiv, founded in 2013, offers on-demand procurement services for custom mechanical components parts for the U.S. manufacturing industry. The company has production operations in the U.S., China, India and Mexico, with a total of 400 employees.

“Industries that could be most vulnerable to these tariffs are pharmaceuticals, smartphones, jewelry, textiles, and footwear,” Licata said. “As tariffs become more normalized with all trading partners, we’ll likely see every industry impacted in some way.”

Goods from Mexico received a reprieve from the 25% tariff rate when U.S. and Mexican officials announced a 90-day extension to negotiate a long term trade deal on July 31.

The 90-day extension means a 25% tariff rate will stay in place for Mexico instead of a 30% levy that would have started Friday.

However, imported goods covered by the United States-Mexico-Canada Agreement (USMCA) were expected to remain exempt from tariffs.

The White House’s 35% tariffs on imports from Canada will also not be applied to goods that are compliant with the USMCA.

Mexico was the top U.S. trade partner in June at $73 billion, according to Census Bureau data. Canada ranked No. 2 for trade with the U.S. in June at $58 billion, and China ranked third at $28 billion.

Despite the Trump administration’s new tariff policy, nearshoring of manufacturing to the U.S., Mexico and other parts of the Americas is still ongoing, Licata said.

In November 2023, Fictiv opened a production facility in Monterrey, Mexico, aiming to offer more options for on-demand manufacturing services across North America.

“We feel nearshoring was underway over the last few years (due to COVID disruptions), and the tariffs are helping bring some manufacturing back. The Mexico and Canada deals will help accelerate this trend, but there is still a lot of uncertainty about how a deal with those countries will look,” Licata said.

“Mexico seems to be managing the negotiations more delicately, whereas Canada has been fairly aggressive with their stance. As a result, we’re seeing Trump take a harder view of Canada.  Depending on these deals, then we can see an acceleration in nearshoring if there are proven advantages for companies and more certainty over the longer term.”

Licata said manufacturers looking to source suppliers in the current trade environment should keep an eye on “total landed costs.”

“We’re encouraging customers to stay focused on total landed cost, as true costs vary significantly across regions,” Licata said. “Transparent cost data — including tariffs, transportation, labor, and manufacturing capability — empowers smarter sourcing, especially as trade policies remain unsettled. Tariffs aren’t going away, and companies that understand the full cost picture will be better positioned to navigate uncertainty and gain a competitive edge.”

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