For years, tariffs were a niche topic that only came up once in a great while when a major trade deal or something similar was being discussed. For most companies, the tariff impact was not a big topic.
Today it is nearly impossible to avoid discussions about tariffs and duties. Follow any national conversations on cable news or major stories in national newspapers and it won’t be long until discussions of the impact of tariffs
In 2018 there were four tranches of tariffs imposed- one on steel and aluminum worldwide and then three on products coming in from China. The recently signed (but not yet ratified) U.S.-Mexico-Canada Agreement (USMCA) contains many new regulations that allow for imposition of tariffs if stronger regulations on wages and product origin percentage aren’t hit, which will likely lead to increased tariffs paid on imports from Canada and Mexico.
Recently in the annual State of the Union Speech, the President pushed legislation allowing tariffs worldwide for any companies that have the same on American exports or do not hit certain labor standards. If this happens, the scope of tariffs impacts will grow exponentially, and any business must be prepared immediately.
The understanding and plans for minimization of tariff impacts has never been more relevant. If you’d like to find out how tariffs will affect you and how you can mitigate their impact through compliance and duty drawback, please contact our VP of Sales Andrew Galloways at 973-726-5340.