Top 5 Industries Affected by Recent Tariffs

With tariffs being levied (and sometimes quickly rescinded) across the globe, trade fluctuations are here to stay for at least the short term.  

From steel to microchips to agricultural products, it’s hard to keep track of recent and upcoming changes. TrueCommerce is here to help outline what changes are in the mix and who might be affected. 

Automotive

Effective March 12, 2025, two proclamations were issued: Adjusting Imports of Steel into the United States, and Adjusting Imports of Aluminum into the United States. These two documents expand on previous tariffs and end all previous country exemptions. All countries will be subject to this 25% tariff. Included in these documents was the addition of new downstream products, expanding the product scope. 

At the same time, the existing 10% tariff on Chinese automobiles and parts has been doubled to 20%. 

Automotive Industry Tariff Breakdown

Tariff percentages affecting the automotive industry

• 25% tariff on steel and aluminum imports 

• 20% tariff on Chinese automobiles and parts 

Effects of Tariffs on the Automotive Industry

At the most basic level, these tariffs on steel and aluminum will raise production costs for automakers. Costs for automotive components will also rise, depending on the source country. With some companies now speaking of hoarding materials and components, many are in the midst of shifting their supply chain strategies. 

Making up ~3% of the total U.S. gross domestic product (GDP), the auto industry employs 1.7 million people. 

Construction & Homebuilding 

On February 1, 2025, the U.S. announced an additional 25% across-the-board tariff on Canadian lumber and Mexican goods coming into the U.S. There was a previous 14.5% rate already in place for softwood lumber products from Canada, which is still in effect, leading to tariffs of almost 40% for Canadian lumber. 

According to the National Association of Homebuilders, $14 billion worth of goods imported from outside the U.S. was used in the construction of new housing in 2024. Under current tariffs, those goods will now be significantly more expensive.  

More than 70% of imports of softwood lumber and gypsum used in drywall production for home builders come from Canada and Mexico. 

Construction & Homebuilding Industry Tariff Breakdown

Tariff percentages affecting the construction & homebuilding industry 

• 25% tariff on Canadian softwood lumber (a primary building material for homes) on top of a previous 14.5% rate 

• 25% tariff on steel and aluminum, affecting materials used in construction 

Effects of Tariffs on the Construction & Homebuilding Industry 

Basic materials costs will rise along with tariffs, while manufacturers and homebuilders will have to adjust prices and attempt to negotiate with producers on price.  

The construction industry accounts for about 4.5% of the U.S. GDP, employs 8 million people and creates over $2 trillion worth of structures according to the Associated General Contractors of America.  

Retail

Three executive orders placing a 10% tariff on energy resources from Canada, a 25% tariff on imports of goods, 20% tariffs on imports from China, and a 25% tariff on imports from Mexico were signed in early 2025. Combined with the previously mentioned steel and aluminum tariffs, these will raise the prices of all goods and many crucial materials imported into the U.S. 

Retail Industry Tariff Breakdown

Tariff percentages affecting the retail industry

• 20% tariff on consumer goods imported from China (clothing, electronics, toys, etc.) 

• 25% tariff on steel and aluminum imports 

• 25% tariff on imports from Mexico 

Effects of Tariffs on the Retail Industry

The retail industry relies on many imported products and materials to provide products and services at an affordable level. Many small to medium sized businesses will have a hard time absorbing increased costs stemming from these tariffs, causing them to pass these costs along to consumers. 

The retail industry makes up about 6.4% of the United States’ GDP.

Oil & Gas

Accounting for roughly 8% of the U.S. GDP, the oil and gas industry is working to adjust to the tariffs on steel and possible upcoming 10% tariff on Canadian oil imports.

The industry contributes 15.7% of total capital expenditures in the U.S. and brings back an average of over $100 billion from foreign operations. The oil and gas industry supports 10.3 million jobs in the U.S., according to the American Petroleum Institute. 

Oil & Gas Industry Tariff Breakdown

Tariff percentages affecting the oil & gas industry

• 25% tariff on steel from the EU and Canada 

• Possible 10% tariff on Canadian oil imports 

Effects of Tariffs on the Oil & Gas Industry 

The 25% tariffs on steel imports from Canada and the EU will affect the oil and gas industry through their drilling and production efforts, mainly due to their use of materials like steel piping. 

With a 10% tariff on Canadian oil imports looming, the oil industry is bracing for a bumpy road ahead. According to the Bank of Canada, around 94% of Canadian crude oil exports are sent to the U.S. 

Agriculture 

In late February, the USDA’s Agricultural Trade Outlook for U.S. Agricultural Trade forecast a $49 billion trade deficit for 2025. New tariffs are a large contributing factor to this outlook.  

Agriculture Industry Tariff Breakdown

Tariff percentages affecting the agriculture industry

• 25% tariffs on all Canadian imports 

• 25% tariff on all Mexican imports 

• Retaliatory tariffs from China on key agricultural products including chicken, wheat, corn, cotton, soybeans, pork, beef, fruits, vegetables, and dairy 

Effects of Tariffs on the Agricultural Industry 

Farmers in the U.S. are facing large drops in exports due to these retaliatory tariffs. At the same time, the U.S. imports about 60% of fresh fruit and 40% of fresh vegetables, with Mexico being the largest contributor. 

Included in these tariffs are products such as fertilizers, chemicals, and machinery that are used daily in the agriculture industry. Facing rising costs and lower exports, farmers in the U.S. will be passing these costs along to consumers, changing planting strategies in the future, and looking for new markets. 

Planning Ahead for Tariff Turbulence 

These are just a few industries dealing with the major changes to supply chains and processes. We’ll cover more of the top industries affected by recent tariffs in upcoming articles on the TrueCommerce blog. 

While shifting strategies will be a major theme in the near future, so will streamlining operations and reducing manual processes to save time and money, reduce errors, and ensure compliance. With solutions for Vendor Managed Inventory (VMI) and integrated EDI, TrueCommerce can help make the steps toward an optimized and automated supply chain.