How Trump’s 2025 Tariff Wave Is Shaping Global Mobility & the U.S. Dollar
Shipping Freights
Since April 2025, the U.S. has ushered in sweeping new tariffs—dubbed the “Liberation Day tariffs”—with effects rippling across economies, currencies, and expatriate planning. Long‑term movers, global mobility specialists, and employers sending staff abroad must account for heightened risks and shifting financial dynamics.
What Happened?
On April 2, 2025, President Trump declared a national emergency via Executive Order 14257, launching a baseline 10% tariff on most imports, and up to 50% retaliatory tariffs on countries deemed to have trade imbalances—effective April 5 and April 9 respectively.
The tariffs cover over 60 countries, including China, Canada, Mexico, the EU, UK, Japan, Brazil, and more. In late July‑August, Canada saw its rate rise to 35%, India was hit with 25%+, secondary sanctions targeted countries buying Russian oil, and many allied nations scrambled to adjust policies.
Economic & Dollar Impacts
Analysts now expect the U.S. dollar to fall 10%–20% over the next 5–10 years amid capital flight, weakening trade credibility, and inflationary fears. The dollar has already depreciated around 8% since Trump’s inauguration. Goldman Sachs reports foreign investors pulled $63 billion in equity assets in just two months.
Tariffs have raised consumer prices: household income losses up to ~$2,400 per year, federal revenues rose $17 billion, and GDP is projected to decline ~0.9 percentage points in 2025.
Why Global Mobility Clients Should Care
1. Expat Budgets & Relocation Costs
U.S. citizens living abroad may face higher costs when importing goods, healthcare supplies, or shipping belongings back home, especially for imports taxed at higher levels.
2. Currency & Purchasing Power Changes
A weakening dollar means less buying power overseas—but it could also make investments more attractive for non‑U.S. buyers, affecting real estate and cost structures abroad.
3. Corporate Mobility Adjustments
Employers transferring staff internationally must consider:
Inflationary adjustments to compensation
Shifting tax liabilities on allowances
Reimbursement for essential imported goods or equipment
4. Financial Planning & Exits
Individuals selling U.S. assets while abroad may get less for dollars due to depreciation. Timing of asset conversion, pension transfers, and international bank transfers needs careful coordination.
How Beyond Borders Advises Clients
Scenario Advisory Action
Asset Conversion Advise clients to monitor FX trends and convert cash reserves before sharp dollar drops.
Cost Estimation For imported household goods or shipments: factor in possible tariff duties and rising prices.
Corporate Expense Update relocation packages to account for inflation in housing, goods, and shipping costs tied to tariffs.
Risk Management Use hedging tools or currency-forward contracts when converting large sums for investments abroad.
Timing Relocation Moves scheduled in late 2025–2026 could face volatile costs. Early clients may benefit from pre‑tariff pricing.
Trade Policy We monitor legal challenges and help clients interpret potential reinstatement or reversal of tariff policies.
Key Takeaways:
Liberation Day tariffs introduced a two‑tier tariff regime—10% baseline and up to 50% for high‑deficit nations.
U.S. tariffs have expanded globally, affecting consumer prices, trade corridors, and foreign relations—especially with EU, Canada, China, and India.
The U.S. dollar is weakening, with long-term depreciation projected. That carries major implications for expats and asset allocation.
Many tariffs face legal scrutiny; decisions like V.O.S. Selections v. United States could overturn parts of the policy—but appeals have temporarily reinstated them.
At Beyond Borders, we equip long‑term movers and corporate clients to plan against tariff volatility: modeling FX exposure, forecasting cost impacts, and adapting global mobility strategies amid shifting trade policy. If you’re relocating abroad in the coming months or evaluating long-stay assignments, we can model a resilient financial timeline that accounts for tariff and currency risk.
