May 23, 2025
The Administration began negotiations with countries amidst trade, tariffs, and national security concerns. This followed last month’s announcement of an executive order to prevent “stacking” tariffs and ease tariffs on imported auto parts, including those coming from Mexico. That same week, the Administration announced a mineral deal with Ukraine, which would give the U.S. access to Ukraine’s critical minerals and other resources; some of which are essential elements to the production of cellphones, hard drives, and electric and hybrid vehicles. 
Other ‘trade deals’ include an agreement with the United Kingdom decreasing its reciprocal tariff on vehicles from 25% to 10% and reduce non-tariff barriers to U.S. products, and a deal with China to significantly lower taxes on goods and halt non-tariff countermeasures such as the export of critical minerals to the U.S for 90-days allowing both governments to continue conversations to strike a better deal. While no trade deal was made, Canada’s newly elected Prime Minister Mark Carney, traveled to Washington D.C. to meet with President Trump highlighting the importance of working together to build new economic and security relationships. Both leaders will meet once again next month at the G7 Summit. Further expanding on trade deals, President Trump traveled to the Middle East to make business deals with Saudi Arabia, Qatar, and the United Arab Emirates. Saudi Arabia committed to invest $600 billion to strengthen energy security, defense industry, technology leadership, and access to global infrastructure and critical minerals. Qatar agreed to generate at least $1.2 trillion in economic exchange, partially selling Boeing aircrafts and GE Aerospace engines to Qatar Airways. Lastly, the U.S. announced a $200 billion commercial deal with the United Arab Emirates on aluminum smelter projects, commercial aviation, expand oil and natural gas, AI and more.
While the administration continues to work on trade deals, President Trump continues to commit to tariffs elsewhere, now imposing 100% tariffs on movies made outside of the U.S. It remains unclear how these tariffs would be implemented or when; however, Governor Newsom has taken the opportunity to request President Trump’s support for a $7.5 billion federal tax break for films made in the U.S. As a response to other tariffs, companies have started to suffer an impact on sales. Mattel recently reported a plan to increase prices on American toys as a response to the administration’s trade policies, and Toyota forecasted a 21% profit decline in its current fiscal year due to tariffs impacting exports to the U.S. and consumer sentiment. At the Chamber, we are encouraged by the administration’s efforts in securing trade deals and continue to advocate for and elevate the importance of continued conversations with key trade allies to ensure our region’s global competitiveness and economic prosperity.
As we continue to advocate in support of free trade within North America to enhance our region’s economic development and global competitiveness, we ask you to take a moment to complete this short survey and share how your business may or has already been impacted by tariffs or the threat of tariffs. All submitted information remains confidential.
Looking ahead, please save the date for the Chamber’s upcoming International Business Affairs Forum taking place on July 8th We’ll hear from regional Consul Generals and stakeholders on how San Diego has leveraged USMCA to attract foreign direct investment and strengthen cross-border supply chains.