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The tariff policy implemented by the Trump administration in April 2025 marks a significant shift for the aviation sector by ending long-standing duty-free status in aircraft trading.

On April 2, 2025, President Donald Trump announced a new tariff regime under the International Emergency Economic Powers Act of 1977 (“IEEPA”), citing national security concerns. This regime includes a 10 percent baseline tariff for all countries and higher “reciprocal tariffs” for approximately 90 countries, effective April 5, and April 9, 2025, with additional potential tariffs threatened in the future. The new tariffs would significantly impact corporations, particularly those with supply-chain exposure in China and other Southeastern Asian countries.

Not long after starting his second term, U.S. President Donald J. Trump announced tariffs on numerous imports from some of the nation’s major trading counterparties, with tariff amounts varying depending on the country and commodity type.

The recent tariffs imposed by the Trump administration mark a significant shift in U.S. trade policy that is expected to have a wide-ranging impact across multiple sectors, including in the energy sector.

As it releases executive orders with unprecedented speed, the Trump administration has begun executing its vision for the United States and the world. This article addresses some of the tax-related topics likely to be the focus of the Trump administration in the coming months, including the extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 (the “TCJA”), changes to the Inflation Reduction Act of 2022 (the “IRA”), increased tariffs, and changes to enforcement priorities at the Internal Revenue Service (the “IRS”).

For more than twenty years, the North American Free Trade Agreement (“NAFTA”), and later, the United States‑Mexico-Canada Agreement (“USMCA”), have facilitated cross-border trade and investment among the United States, Mexico, and Canada through the elimination of virtually all financial barriers to trade.

The tectonic plates have shifted once again, this time with trade tariff announcements from the incoming Trump administration, sowing the seeds for another potential supply chain disruption event.