For now, U.S. importers have dodged the impact of the threatened 5% tariffs on all imports from Mexico. At the same time, trade wars continue to test importers from various other angles. U.S. importers are actively examining how best to adjust sourcing strategies in a time of fluctuating tariffs, and every importer’s case is unique. Long-term and short-term, strategies for U.S. importers will vary.

Tariff Landscape

As importers already learned from the tariffs on Chinese products, the recent Mexico threat is only one piece of a complex global puzzle. Looking to other regions, in early June, Proclamation 9902 terminated India’s advantageous Generalized System of Preferences designation. This change means India no longer benefits from duty-free treatment as a developing nation.  Moving the second half of June, companies are planning for a fourth wave of China tariffs. If implemented, List 4 will cover virtually all the rest of the imports from China to the United States. It is therefore critical that U.S. importers monitor the ever-changing tariffs not only with regard to China, but globally.

Re-Routing