Your Broker Knows Blog

We have talked at length about the good and bad of tariffs in the past few weeks, but one of the questions we haven’t quite dived into is the one that perhaps deserves the most attention: What can actually be done to help you navigate increased costs tied to new duties and tariffs? The answer is, fortunately, quite a bit.

The US government has released its official “America First” Trade Policy, and the changes listed represent a significant shift in focus for the US and its relationship to the international marketplace. With these changes on the horizon, it is worth examining and understanding some of the subject matter discussed in this policy, as knowing what is proposed in this document could be incredibly important for importers, exports, and international businesses of all kinds.

Canada and the US appear to be headed to a place of some tension when it comes to international trade. With a proposed tariff of 25% on Canadian goods looming on the horizon and some indications suggesting their implementation could happen at any point in the coming months, importing into the US from Canada could very easily become more complex very quickly.

Did you know that there are sections of the US where foreign goods are considered outside the US for the purposes of collecting duties and taxes? It’s true, and the role of Foreign Trade Zones in global supply chains is significant and a valuable addition to the international trade toolbox. These zones lend themselves to several creative uses that can provide options and cost savings for the businesses that put them to work. If you are intrigued by this idea and curious as to whether or not these foreign trade zones (FTZ) can be used effectively by your business, then you are invited to read on.

Whether in the US, Canada, or anywhere in the world, when an administration changes, change often comes with it. That change can often manifest in the form of shifted international trade relations as newly elected officials pursue different priorities and push forward new ideas on how their nation fits into the world marketplace. For this reason, new tariffs, regulations, agreements, and shifting trade negotiations can be high on the political agenda.

Let’s imagine a scenario. You are a company that imports garments from a manufacturer in India, and right now there is something of a boom for your particular kind of garment. Someone famous wore one at a televised event, and now whatever it is you are making is the talk of the town. So, you ramp up production and begin importing them on a large scale from a factory that makes them in India.

When it comes to importing in the global marketplace, diversification is almost always viewed as a net positive. You are encouraged to make use of multiple suppliers, multiple modes of transport,

If there is a recurring theme in international trade, it is almost certainly complexity. There are countless moving parts, niche rules, special considerations, and even strange corner cases that are all necessary for staying compliant while trading internationally. This often-moving target of compliance is what makes an extra pair of eyes so important for keeping your import business on the straight and narrow.

Let’s imagine a situation: You have been working on a new product for months, researching the rules for importing goods into the US, common mistakes to avoid when importing into the US, and what must be declared at US Customs. You put in the work and the preparation in an effort to best prepare yourself for the day it arrives. 

Beginning on August 1st, 2024, stricter rules are coming into play regarding dogs crossing the border into the US. While this may seem largely irrelevant to standard US importers, these additional rules surrounding dogs may have a significant knock-on effect for your trade in ways that may not seem immediately obvious.