What the America First Trade Policy Means for Free Trade Agreements and Your Business

On January 20, 2025, the president signed the AmericaFirst Trade Policy, initiating a review of all U.S. trade agreements, including the United States-Mexico-Canada Agreement (USMCA). The findings from this review, due April 1, 2025, could bring significant changes to trade agreement structures, enforcement, and compliance requirements, creating both challenges and opportunities for businesses.

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The policy signals potential shifts in the trade landscape, including the possibility of new tariffs if agreements are renegotiated. It also raises the likelihood of changes to the text of agreements, which could impact critical elements such as rules of origin, tariff schedules, and dispute mechanisms. These shifts could increase compliance complexity, requiring businesses to provide more robust documentation and adapt to evolving regulations.

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Free trade agreements remain essential for reducing costs, opening markets, and simplifying trade. Any modifications to their terms or enforcement could disrupt supply chains, raise operational expenses, and challenge business competitiveness. As a result, companies relying on these agreements must act now to mitigate risks.

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To prepare for potential changes, businesses should focus on ensuring compliance with current rules of origin, identifying supply chain vulnerabilities, and strengthening internal processes. Leveraging tools likeKendrick Trade’s software can help streamline trade compliance and adapt to new requirements quickly. Staying informed about trade developments and engaging with industry networks is also crucial for navigating this period of uncertainty.

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The America First Trade Policy marks a pivotal moment for trade agreements and global commerce. By taking proactive steps now, businesses can remain resilient, adapt to the evolving trade landscape, and seize opportunities for continued growth despite potential disruptions.