Trump's Tariff Policies 2025: What Every Accountant & CPA Should Know

What is a Tariff?

In simple words, tariffs are taxes on goods imported from another country. Trump’s Tariff Policies in 2025 have increased these taxes on certain imports, making them more expensive for consumers and businesses. The concept of setting tariffs is often used to protect domestic industries from foreign competition.

Understand About Reciprocal Tariffs

In a step to address the international trade imbalance, President Trump has announced his intention to implement a return of customs duties. This strategic policy aims to coordinate the tariffs charged by the United States with those imposed by other countries on US imports.

Details of the New Trump’s Tariff Policies

Since early 2025, the Trump administration has enacted aggressive, multifaceted tariff measures. Marking one of the most protectionist shifts in decades:

A Universal “reciprocal” tariff: 10% on all imports (effective April 5), along with country‑specific tariffs ranging up to 50%. These rates target trade partners deemed to impose unfavorable economic conditions on the U.S. (Source: btcpa)

Steel and aluminum tariffs: Initially set at 25% (March 12), then doubled to 50% by June 4. Tariffs extend to household appliances and enforce “made in U.S.” rules.

Auto sector tariffs: A 25% tariff on imported vehicles and parts took effect between April and May.

Copper tariffs: Levied at 50% on semi‑finished and copper‑intensive goods. From August 1, though, raw materials such as cathode and scrap are exempt.

China-specific tariffs: Combined levies (including fentanyl, universal, etc.) reached 30% by mid-May, with earlier steep hikes (up to 145%) paused amid ongoing legal and diplomatic developments. (Source: BTCPA)

Technology and energy targets: A sweeping 100% tariff on imported computer chips, with exemptions for companies committing to U.S. manufacturing (e.g., Apple secured an exemption tied to a $600 billion domestic investment).

Gold declared exempt: Trump reassured markets that gold bar imports would not face tariffs after earlier confusion and price volatility.

How Trump’s Tariff Policies Impact the Indian Economy?

President Donald Trump increased tariffs on Indian goods to 50%, one of the highest levies on any trading partner, over concerns about the South Asian nation’s oil trade with Russia. This move could have a multibillion dollar impact on India’s economy. Because of India’s high trade barriers, Trump had previously placed 25% tariffs on Indian goods.

Even though the United States accounts for only 20% of India’s total exports, or 2% of GDP, some industries are disproportionately affected. Gems and jewelry, clothing, textiles, and chemicals are among the $8 billion worth of exports that UBS estimates are most at risk.

The order states that the previously announced tariffs will go into effect on Thursday, while the new tariffs will go into effect in 21 days. (Source: CNBC)

How Trump’s Tariffs Impact Indian Accountants?

Well, if you’re a US CPA or a CMA, remember that Trump’s tariffs will not directly impact you. Well, these higher tariffs make U.S. companies recalculate the landed cost of everything they import. That means new supply chain decisions, new vendor contracts, and a lot of extra accounting work. From cost allocation and inventory valuation to financial reporting.

Here’s the key opportunity U.S. companies often offshore this kind of detailed work to their teams in India. And who do they hire? People trained in U.S. GAAP and global finance standards. Exactly what you learn in the CPA and CMA programs.

The last time tariffs like this were introduced back in 2018. U.S. imports from China dropped by about 40%, and accounting firms had a surge in demand for professionals who could handle cost analysis, compliance, and reporting for new supply chains.

So, if you’re a B.Com, M.Com, or even a CA looking to go global, this could be your moment. By the time these tariffs kick in fully, companies will be hiring more accountants in India to handle the extra complexity. And being CPA or CMA qualified could put you right at the front of that line.

Final Thoughts…

In conclusion, Trump’s tariff regime in 2025 has ushered in profound cost pressures, legal uncertainty, and macroeconomic slowdown requiring accountants and CPAs to adopt agile strategies across costing, compliance, forecasting, and disclosures. Remaining informed and responsive will be the key to guiding clients and stakeholders through this dynamic trade environment.