The latest round of tariffs announced by the US at the White House Rose Garden on 2 April 2025 has sent ripples across various industries, sparking concerns over global trade, manufacturing costs, and consumer prices. While much of the discussion has centred on economic implications, it is worth us looking at the impact of tariffs on the trade mark landscape. 

A quick look at the newly announced tariffs

The US administration has, with effect from 5 or 9 April, imposed a 10% baseline tariff on imports into the United States, with even higher rates for certain territories such as China (34%), the European Union (20%), Vietnam (46%), Taiwan (32%) and India (26%). These tariffs have complex ramifications for trade mark protection and enforcement strategies as well as intellectual property rights generally.

Lessons from previous tariff implementations 

As the saying goes, history can teach us lessons of what is to come, and though there are present day nuances and contexts which could alter the practical effects of the recent tariff news, trade mark lessons can still be learnt. 

To take just one example, the US/ China Trade War in 2018-2020:

• This trade war played a significant role in accelerating the shift from "Made in China" (OEM manufacturing for foreign brands) to "Made by China" (Chinese-owned brands producing and selling their own branded products). 
• Higher tariffs on Chinese goods encouraged grey market imports, leading to a large number of counterfeit products being bought by US consumers, especially in the luxury and consumer electronics markets.  
• China amended its Trademark Law in 2019 to enhance protections against bad-faith trademark filings and to make the enforcement mechanisms easier for brands. 
• The U.S. ramped up customs enforcement, leading to more trade mark-related seizures at borders. For example, the US Customs and Border Protection’s Operation Mega Flex, initiated in July 2019 led to the seizure of over 4,200 shipments containing counterfeit goods, and other prohibited items. The targeted shipments were primarily from China and often exploited e-commerce channels to enter the US.

Practical Considerations

So, the tariffs could have a knock-on effect on how businesses approach their trade mark and brand management strategy. Here’s a few points to consider:

• Reassess Trade Mark Filing Strategy – businesses moving manufacturing and production into the US to avoid the tariffs, or the opposite, moving their supply chain away from the US, will need to consider whether they have sufficient trade mark protection in place in those territories.
• Licensing and Brand Valuation - higher production costs can impact licensing agreements and brand valuation. Businesses negotiating international licensing deals must account for the effects tariffs may have on supply chains and consumer demand.
• Strengthen Anti-Counterfeiting Efforts – higher costs could drive consumers toward cheaper alternatives, including the counterfeit market. Brand owners should therefore double down on their enforcement efforts and trade mark watching strategies, consider forming or joining cross-industry alliances that work closely with customs enforcement and leverage artificial intelligence and big data analytics to identify/predict counterfeit hotspots before they become saturated.
• Supply Chain Auditing – businesses can go beyond filing trade marks by implementing ongoing audits of supply chains. Regular checks and digital tracking systems can ensure that every stage, from manufacturing to retail, is protected, reducing vulnerabilities that counterfeiters or infringers might exploit.
• Customs Enforcement and Protection – with potentially alternative suppliers and changing import routes trade mark rights owners should ensure they are proactive in enforcing their rights across different and multiple jurisdictions, e.g. recording trade marks with customs authorities. 
• Enhanced E-Commerce Partnerships – brands can form strategic partnerships with major online marketplaces to implement swift, technology-driven responses for detecting and removing counterfeit listings. A direct line of communication can expedite enforcement and limit market damage.

Final Thoughts

Tariffs are often viewed through a general economic lens, but their implications can have further reaching effects into the world of  trade mark protection and brand management. With potential retaliatory tariffs on the horizon, business should continue to take a broader view of the imposed tariff’s impact on their trade mark portfolio and enforcement efforts to position themselves for success in a volatile trade environment.