Heather Marx, Tom Wallrich, and Kristi Zentner discussed key strategies businesses can put in place now to plan for and address tariff costs under the second Trump administration. Under the new administration, the United States is expected to adopt a more protectionist trade policy, increasing tariffs on imports, particularly from China. This shift from the previous free trade goals of G20 nations will very likely lead to higher costs for businesses and consumers due to widespread tariffs and new taxation challenges. Companies must develop strategies now to minimize the impacts of expected increased tariffs and duties to remain competitive in the evolving trade environment.
To learn about what companies can do to prepare, view a recording of the webinar here or see below for key takeaways from the program.
Getting Trade Ready in 2025: Strategies to Navigate Tariff Impacts
Supply Chain Diversification: Businesses are encouraged to identify alternative sourcing options in countries not subject to prohibitive tariffs. Businesses are also encouraged to consider domestic sourcing as a strategy to mitigate the impact of tariffs, despite potential challenges such as higher costs and infrastructure issues.
Duty Drawback Programs: These programs are significant for companies that import and reexport goods due to the refund of certain duties once exported.
Classification Review: Reviewing and ensuring correct product classification under the Harmonized Tariff Schedule can lead to significant savings and avoid overpayment of duties.
First Sale Rule: This rule allows businesses to use the price from the initial sale to calculate customs duties, potentially reducing the amount of customs duties owed.
Customs Audits and Import Practices: Businesses must conduct internal customs audits and evaluate their import practices to ensure compliance and minimize costs.
DDP Incoterms: Utilizing established international commercial terms to allocate contractual obligations for payment of import duties can prevent confusion between global traders.