The new U.S. tariffs announced on April 2, which include a "minimum basic tariff" of 10% and higher "reciprocal tariffs" on goods from about 60 countries, expand the trade objectives of the Trump administration from a few countries and sectors to the vast majority of the global economy. In addition to increased costs for U.S. businesses and consumers, two things are clear. First, we are entering a new era of trade and economic relations. The president's tariffs, which are added to existing duties, have affected a large number of bilateral trade relations or sectors of interest. Second, uncertainty will be a defining feature of much global trade in the foreseeable future, not only regarding the possibility of imposing more tariffs (next week, next month, or next year) but also concerning the stability and reliability of U.S. relations with its trading partners and the global repercussions arising from that.

The decision-making process for management has become more complex. Every company, regardless of its sector or location, needs to integrate tariffs and the associated ambiguity into its planning and operational model. Here’s what we currently know, and what the impact looks like on U.S. and global businesses.