Navigating the Trump Tariffs: What You Need to Know

Tariffs are very much the focal point of the U.S. trade policy right now, with many logistics companies preparing to grapple with the repercussions of these Tariffs, and the lasting impact they may have on global logistics.

The so-called Trump Tariffs - primarily targeting goods from China, but also impacting trade with Canada, Mexico, and the EU - are reshaping global supply chains and pushing freight forwarders to re-evaluate strategies in real time.

The ripple effects are now reaching U.S. consumers directly: major companies like Barbie-maker Mattel and automotive giant Ford have publicly announced upcoming price increases, citing higher import costs among the causes

These tariffs have imposed higher duties on a variety of items, including electronics, machinery, steel, and aluminium. These tariffs are going to directly affect the cost of shipping by increasing the overall price of goods imported into the U.S. So, what can you do to prepare for the upcoming challenges these changes may present?

What Do These Tariffs Mean for Freight Logistics?

Higher import duties directly increase the cost of transporting goods into the U.S., affecting everything from customs clearance to final-mile delivery. In an industry already challenged by container shortages, fluctuating fuel prices, and port congestion, the Trump Tariffs add another layer of complexity. Here’s how freight forwarders and importers can stay agile:

Correct Product Classification

Ensure all shipments are accurately classified under U.S. customs codes (HTS codes). Misclassification not only leads to potential overpayments but can also result in delays and penalties. A licensed customs broker or freight forwarding partner can help avoid costly mistakes.

Tariff Exemptions

Certain products may qualify for tariff exemptions or exclusions from the imposed tariffs. Keeping up with updates from the U.S. Trade Representative’s office can help businesses or consult with your freight forwarder to identify opportunities to mitigate costs.

Optimise Shipping Routes

Reevaluate the shipping routes and consider whether importing through other countries with lower tariffs may be a viable option. While this might introduce some logistical challenges and forward planning, it could ultimately help reduce costs - especially for high-volume or high-value shipments.

Renegotiate with Suppliers

Businesses can work with their suppliers to negotiate better prices, considering the tariffs. In some cases, suppliers may offer discounts to offset the additional costs incurred from the tariffs.

Stay Informed and Proactive

The landscape of tariffs and trade agreements is constantly changing. Shipping companies should maintain a close watch on U.S. trade policy to anticipate changes that might affect their clients.  Businesses that stay informed about trade developments are better positioned to pivot when needed. Subscribing to logistics and freight updates - like our blog at Wallis Shipping - ensures you’re always one step ahead.